Archive for March 19th, 2020

Central Bank Watch

South African Repo Rate Slashed 100 Basis Points

March 19, 2020

The latest and largest rate cut today has been a 100-basis point reduction in the South Africa Reserve Bank’s repo rate to 5.25%. This follows a 25-basis point cut in January and an initial 25-bp cut in July 2019. The repo rate had been as high as 7% from March 2016 through July 2017. Ahead […] More

Central Bank Watch

Filipino Monetary Easing

March 19, 2020

At Bangko Sentral ng Pilipinas, the policy interest rate of the Philippines was cut to 3.25% today from 3.75%. That increment of reduction doubles the previous easing done in February and brings the total cut since May 2019 to 125 basis points.  Inflation is firmly anchored within the central bank target of 2-4% according to […] More

Central Bank Watch

Another Indonesian Interest Rate Cut

March 19, 2020

Officials at Bank Indonesia reduced the 7-day reverse repo rate by 25 basis points to 4.5%. There was also a 25-basis point cut in February and a full percentage point of reduction in four moves during the second half of last year. Taken together all but 25 basis points of the 175-bp of tightening in […] More

Central Bank Watch

Taiwanese Interest Rate Cut Exceed Expectations

March 19, 2020

The Central Bank of the Republic of China (Taiwan) reduced its discount rate by a greater-than-anticipated 25 basis points to 1.125%. This was the rates first change since a cut of 12.5% in June 2016. Officials also established a special loan facility for small and medium-sized enterprises. The coronavirus will be a big growth depressant […] More

Central Bank Watch

Swiss National Bank to Be Vigilant with Intervention to Contain Franc Strength

March 19, 2020

The Swiss National Bank‘s sight deposit rate of negative 0.75% since January 2015 was retained at that central bank’s quarterly policy review, and officials characterized the franc as even more overvalued than before, which will necessitate more intense intervention in the FX market. Extra steps are being taken to ensure ample liquidity. Officials do not […] More

Central Bank Watch

Australian Interest Rate Cut

March 19, 2020

The Reserve Bank of Australia, which at a scheduled meeting on March 3 had cut its official cash rate by 25 basis points, cut the OCR by an additional 25 bps today to a record low of 0.25%. This move was only part of a multi-pronged package spelled out in a statement. A significant loss […] More

New Overnight Developments Abroad - Daily Update

Bracing for Impact But Investors Take a Pause

March 19, 2020

The count of identified global coronavirus infections (230,041) and deaths (9,386) has risen by 26,429 and 1,097 in the past 26 hours. Investors are getting a glimpse of just how bad the economic impact could be. The IFO Institute’s monthly index of Germany’s business climate fell 8.3 points in March to a 127-month low of […] More

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