Archive for December 14th, 2017

Central Bank Watch

Central Bank Rates in Chile, Peru and Colombia Left Unchanged

December 14, 2017

The Central Bank of Chile’s main interest rate was retained at 2.5%, but a released statement expresses some concern about the effect of inflation staying below target might have on actual inflation. “The risks of a delay in the convergence of inflation associated to its current persistently low level are still present, so, if deemed […] More

Central Bank Watch

Bangko Sentral ng Pilipinas

December 14, 2017

There has been a Filipino central bank rate of 3.0% since a pair of 25-basis point cuts in the third quarter of 2014, and monetary officials still see no need to change that level. A statement after the Monetary Board met concluded that the inflationary environment is broadly unchanged since the previous review, predicted in […] More

Central Bank Watch

Bank Indonesia

December 14, 2017

Indonesia’s seven-day reverse repo rat has been at 4.25% since back-to-back 25-basis point cuts in August and September. This level was maintained at the final monetary policy review of 2017, along with a 3.5% deposit rate and a 5.0% overnight lending rate. Officials released at statement that calls Indonesia’s recovery “gradual and uneven” and “projects […] More

Central Bank Watch

Central Bank of Norway

December 14, 2017

The policy interest rate at Norges Bank has been 0.50% since March 2016 when a 25-basis point cut culminated 175 basis points of easing since December 2011. Norway was the first central bank in Europe to experience a central bank rate hike following the Great Recession; such was a regrettably premature attempt to return to […] More

Central Bank Watch

Central Reserve Bank of Turkey

December 14, 2017

Current elevated levels of inflation and recent developments in cost factors have increased the risks on expectations and the pricing behavior. Accordingly, the Committee decided to tighten the monetary policy stance. Turkish monetary officials accomplished this tweak by lifting the late liquidity window rate to 12.75%, a level still slightly shy of on-year CPI inflation, […] More

Central Bank Watch

European Central Bank

December 14, 2017

ECB officials continue to strike a fine balance between hailing a better functioning economy but without encouraging markets to anticipate higher interest rates. The end-year policy review retained a negative 0.4% deposit rate and reiterated that “we continue to expect [rates] to remain at their present levels for an extended period of time, and well […] More

Central Bank Watch

Bank of England

December 14, 2017

The Bank of England was not expected to tighten policy at consecutive monthly meetings, and the Monetary Policy Committee was unanimous in voting to retain a 0.50% bank rate and leave asset purchase ceilings as they’ve been. A statement¬†gives a thumbs up to recent progress in the Brexit talks and for Chancellor Hammond’s budget that […] More

Central Bank Watch

Swiss National Bank

December 14, 2017

Swiss monetary policy gets reviewed quarterly, which is less frequent than the practice at many other central banks. The current interest rate settings of a negative 0.75% sight deposit rate within a 3-month Libor corridor of minus 1.25% to minus 0.25% dates back to January 2015 when SNB authorities ended an automatic asymmetric Swiss franc […] More

New Overnight Developments Abroad - Daily Update

Many Central Bank Decisions and Released Data for Markets to Digest

December 14, 2017

The People’s Bank of China raised short-term interest rates by 5 basis points. The modest tightening was the first in nine months and painted as a response to the Fed’s rate hike on Wednesday. The ECB Governing Council left its interest rate structure unchanged. This includes a negative 0.40% overnight deposit rate. Officials reiterated that […] More

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