Central Bank Watch
South African Reserve Bank Repo Rate Held at 6.75%
September 21, 2017
A 25-basis point cut in the SARB policy interest rate to 6.75% in July was a response to a then-perceived improved inflation outlook and it was the first reduction in many years. The rate had been hiked six times from January 2014 to March 2016 and by 200 basis points in all to 7.0%. At […] More
Central Bank Watch
Bangko Sentral ng Pilipinas
September 21, 2017
Three years have now elapsed since the last change in the Filipino overnight reverse repo rate, which was the second of two 25-basis point hikes in July and September 2014. The latest policy review kept the key central bank rate in The Philippines at 3.0%. Projected inflation remains 3.2% for 2017, 2018 and 2019. This […] More
Central Bank Watch
Bank of Japan
September 21, 2017
Following four hours and 52 minutes of deliberation over two days, the Bank of Japan’s nine-person Board agreed to leave policy as is, with a -0.1% marginal short-term interest rate, a target of “around zero percent” in the 10-year JGB sovereign debt yield, and continuing quantitative stimulus for “as long as it is necessary for […] More
Central Bank Watch
Central Bank of Norway
September 21, 2017
A released statement from Norges Bank’s Executive Board after the latest policy review defends keeping Norway’s key monetary policy rate at 0.50% in the period ahead, suggests that the initial increase may need to occur somewhat sooner than projected back in June, but also maintains that persistent uncertainties will require a careful and gradual eventual […] More
Central Bank Watch
Central Bank of the Republic of China (Taiwan)
September 21, 2017
Taiwan’s central bank discount rate has been left at 1.375%, its level since a 12.5-basis point cut in June 2016. A statement released after this week’s quarterly policy review observes sub-potential economic growth and low and well-anchored actual and expected inflation. As before, a role for currency market intervention on occasion is defended: “In principle, […] More
New Overnight Developments Abroad - Daily Update
BOJ and Fed Leadership Stake Out Contrasting Monetary Policy Stances
September 21, 2017
FOMC officials still expect to hike the fed funds rate one more time in 2017 and three times next year. The current range of 1-1.25% was not changed, but balance sheet reduction begins next month. Lower-than-expected inflation has been a mystery, but the economy and U.S. labor markets are behaving well enough not to deter […] More
