Central Bank Watch

Bank of Korea Eases Monetary Policy Again

October 16, 2019

The Bank of Korea enacted its second 25-basis point repo rate cut since July and released a statement that suggests more ease may be done. But with two of seven policymakers dissenting in favor of not cutting the main interest rate today, the timing and certainty of a third move has been thrown into some […] More

Monetary Policy Eased in Singapore

October 15, 2019

Singapore’s monetary policy is reviewed by it Monetary Authority (MAS) semi-annually in April and October, and policy tool used is an allowed band for the trade-weighted Singapore dollar, rather than a domestic interest rate. Three-month Sibor is currently at 1.9%. The S-dollar’s policy band has three elements: a mid-point, the band’s width, and a prescribed […] More

Another Central Bank Rate Cut in India

October 4, 2019

The Reserve Bank of India cut its benchmark repo interest rate for the fifth time since February. Today’s reduction to 5.15% was 25 basis points, and the total decline of all five moves has been 135 basis points in size. The reverse¬† repo rate also was trimmed by 25 basis points to 4.90%. A statement […] More

Bank of Iceland

October 2, 2019

Officials at the Bank of Iceland engineered their fifth reduction since March of the seven-day term deposit rate, which was lowered by 25 basis points to 3.25%. Earlier cuts were done in August, June, May and March and totaled 125 basis points. In a released statement, the Monetary Policy Committee observes a drop in expected […] More

Another Australian Interest Rate Cut

October 1, 2019

The dollar overnight advanced 0.7% against the Australian dollar and 0.6% versus the kiwi following news of a third 25-basis point cut since June in the Reserve Bank of Australia’s official cash rate, which now moves to a record low of 0.75%. A statement from that central bank left the door open to even more […] More

Bank of Mexico Cuts Overnight Interbank Rate Again

September 27, 2019

Late yesterday came news that the Bank of Mexico had reduced its overnight interbank rate by 25 basis points for a second straight month.¬† The rate level now becomes 7.75%. These moves reverse 100 basis points of policy tightening in 2018, and more cuts seem likely soon. According to a released statement, five of seven […] More

Bank Indonesia Rate Cut

September 19, 2019

At Bank Indonesia, a third consecutive 25-basis point cut was announced today in the seven-day reverse repo rate, which becomes 5.25%. Overnight lending and deposit rates were similarly cut by a quarter percentage point. Like the reductions at meetings in July and August, today’s as-expected preemptive action is meant to promote sustained growth with external […] More

Norges Bank Tightened But Maybe for Last Time

September 19, 2019

Norway has the only central bank in the Group of Ten that’s still raising interest rates. A fourth 25-basis point policy rate hike was engineered today at the Bank of Norway, following earlier such increases in September 2018 and March and June of this year. That said, officials today strongly suggested that this string of […] More

Central Bank of Brazil’s Selic Interest Rate Lowered 50 basis points to 5.50%

September 18, 2019

Copom, the monetary policy committee at Brazil’s central bank engineered its second 50-basis point interest rate cut of 2018 on Wednesday, but this was only the latest in an extensive easing cycle. The Selic rate was at 14.25% prior to October 2016, 875 basis points higher than the new level. All but 200 basis points […] More

FOMC Preview

September 18, 2019

In the seven weeks since the Federal Open Market Committee authorized the first federal funds target decline since December 2008, the 10-year treasury yield had dropped 27 basis points on balance, but there has been scant net change in EUR/USD, dollar/yen, U.S. share prices or the price of oil. The rate reduction on July 31 […] More