Archive for May 8th, 2014

Central Bank Watch

Bank Indonesia

May 8, 2014

It’s been a half year since a 25-basis point hike in the BI reference interest rate that culminated a string of five increases totaling 175 basis points that began in June 2013.  These moves and other steps have inflation, the current account and the rupiah on a better footing according to today’s statement.  Global financial […] More

Central Bank Watch

Norges Bank

May 8, 2014

The overnight deposit rate will continue at 1.5%, the level since cuts of 50 basis points in December 2011 and 25 bps in March 2012.  The Great Recession low was at 1.25% and followed by four 25-basis point hikes between October 2009 and May 2011. The Executive Board’s statement today notes “that it may take […] More

Central Bank Watch

ECB Makes No Policy Changes this Month But Keeping Option Open for June

May 8, 2014

The European Central Bank retained a 0.25% refinancing rate, flanked by a zero deposit rate and a 0.75% marginal lending rate.  New staff forecasts due next month will play a pivotal role in determining if policy is eased then.  All options not prohibited by the central bank’s mandate are possible.  The forward guidance calls for […] More

Central Bank Watch

Central Bank of the Philippines Authorizes Another Hike in Reserve Requirements

May 8, 2014

The last interest rate changes at Bangko Sentral ng Pilipinas were done in 2012, four cuts that left the overnight borrowing and lending rates at 3.5% and 5.5%, respectively.  At the March 27 previous meeting, however, reserve requirements were tightened to 19% from 18%, and that move was followed up by announcement today of a […] More

Central Bank Watch

Bank Negara Malaysia Sends Signal that Monetary Policy May Soon Need to Tighten

May 8, 2014

For an 18th straight policy meeting, Malaysia’s monetary policymakers chose to leave the overnight policy rate at 3.0%.  There had earlier been hikes of 25 basis points each in March 2010, May 2010, July 2010 and May 2011.  A press statement was released after today’s meeting that suggests that this long pause in tightening may […] More

Central Bank Watch

Bank of England

May 8, 2014

After leaving the 0.5% Bank Rate and the GBP 375 billion limit on the asset purchase program unchanged, the Monetary Policy Committee released a boiler plate statement that directed the public to upcoming minutes, which will be released on May 21st, for any further information regarding the latest thinking of committee members.  A similar decision […] More

Central Bank Watch

First Serbian Central Bank Rate Cut since December

May 8, 2014

The National Bank of Serbia’s policy interest rate was cut between May and December of 2013 from 11.75% to 9.5%, but then left unchanged this year after meetings in January, February, March and most recently April 17.  Today, the easing trend was resumed and a statement released that noted sub-target inflation, strong disinflationary forces going […] More

New Overnight Developments Abroad - Daily Update

Many Central Banks Meet — Most Retain Existing Policy Stances

May 8, 2014

Central banks in Malaysia, Indonesia, Norway, and the Philippines left key interest rates unchanged at 3.0%, 7.5%, 1.5% and and 3.5%, respectively.  All these actions were as expected.  The National Bank of Serbia, in contrast, cut its key policy interest rate to 9.0% from 9.5%.  Next up is the Bank of England, then the ECB […] More

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