Archive for March 16th, 2017

Central Bank Watch

Bank of England

March 16, 2017

The Monetary Policy Council agreed again to leave its Bank Rate at 0.25%, but the vote drew a dissent for only the second time in the past dozen meetings. The dissent by Kristin Forbes, who favored a 25-basis point rate increase to 0.50%, was the first one she has cast since joining the MPC. Policymakers […] More

Central Bank Watch

Central Bank of the Republic of Turkey: No Further Rate Hikes This Time

March 16, 2017

A statement released after the latest policy meeting observes that inflation has risen sharply lately, notes that monetary policy has been tightened sharply over recent months, and elects to stay with the status quo this time. Since November 25, the overnight funding rate has been raised a full percentage point to 9.25%, and the one-week […] More

Central Bank Watch

Swiss National Bank Quarterly Policy Review

March 16, 2017

The current Swiss monetary policy stance dates back to January 2015 when a number changes were introduced. A previous cap on franc appreciation at 1.2000 per euro was abandoned, but a continuing role for discretionary, rather than automatic, forex intervention was retained to counter excessive appreciation as needed. By some objective criteria like purchasing power […] More

Central Bank Watch

Central Bank of Norway Keeps 0.50% Interest Rate

March 16, 2017

A 50-basis point interest rate cut in December 2011 followed by five 25-bp reductions from March 2012 to March 2016 depressed Norway’s central bank interest rate from 2.25% to the current 0.50% level. Today’s released new statement projects the rate will stay at this level for more than another year but concedes a higher probability […] More

Central Bank Watch

Bank Indonesia

March 16, 2017

The reverse repo rate, deposit rate, and central bank lending facility rates were held steady as expected in Indonesia at 4.75%, 4.0%, and 5.5% as expected. A released statement projects continuing growth improvement but amid a number of risks that bear watching. Officials during February observed contained inflation, a trade surplus and a rise in the […] More

Central Bank Watch

Bank of Japan Retains Existing Policy

March 16, 2017

After four hours 33 minutes of deliberations on Wednesday and Thursday, the BOJ stuck with all parameters of their policy of “quantitative monetary easing with yield curve control.” QQE was introduced in April 2013 and augmented in October 2014. A negative 0.10% marginal rate on balances held by banks at the BOJ was adopted in […] More

New Overnight Developments Abroad - Daily Update

Big Day for Central Bank Policy Meetings

March 16, 2017

On Wednesday, the Federal Reserve increased its target fed funds rate band by 25 basis points to 0.75-1.0%. Although meeting expectations, remarks by Chair Yellen proved more dovish than expected. Policymakers envisage the same number of rate increases this year and next as they did back in December. On the central banking front today, The […] More

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