Central Bank Watch

Central Reserve Bank of Peru

January 11, 2018

Peruvian Central Bank Board members continued the pattern of cutting their policy rate every other monthly meeting. As they had done in May, July, September, and November, officials cut such by 25 basis points, and the new level becomes 3.0%. A released statement projects a further near-term decline of CPI inflation and core inflation. Inflation […] More

National Bank Serbia

January 11, 2018

Serbia’s central bank policy rate was lowered by 825 basis points from April 2013 though July 2016, but the executive board has implemented just a single 25-basis point cut in October 2017 to 3.5% during the subsequent year and a half. A released statement after the first policy review of 2018 notes that CPI inflation […] More

Bank of Israel Maintains Status Quo

January 10, 2018

Having implemented three 25-basis point reductions per annum from 2011 to 2014 and one more 15-bp cut in February 2015, Israeli monetary officials have kept their central bank interest rate at 0.10% for almost three years. A released statement after their first policy review of 2018 observes that inflation is still under target, partly reflecting […] More

National Bank of Poland Keeps Existing Policy Settings

January 10, 2018

A statement released by monetary officials after they left the 1.5% reference interest rate at 1.5% — it’s been at that level since March 2015 — predicts decent growth ahead but at a somewhat lower pace than in the second half of 2017 and CPI inflation near its target. Although wage growth has accelerated, core […] More

First Romanian Policy Interest Rate Hike since 2003

January 8, 2018

The first change of a key central bank interest rate was made by the National Bank of Romania, where the key policy rate, deposit facility rate, and lending facility rates were raised 25 basis points each to 2.0%, 1.0% and 3.0%. The policy interest rate had been at 1.75% since a 25-basis point reduction in […] More

Bank of Japan Maintains Status Quo

December 21, 2017

The Bank of Japan has a stimulative monetary policy that goes by the title of “quantitative and qualitative easing(QQE) with yield control.” The unchanged settings at the final scheduled policy review of 2018 A Policy-Balance interest rate of negative 0.1% A target 10-year JGB yield of “around 1.0%” JGB purchases of roughly 80 trillion yen […] More

Czech National Bank

December 21, 2017

The CNB by a 5-2 margin voted to retain the interest rate structure, with a main 2-week repo rate of 0.50% flanked by a 0.05% discount rate and a 1.0% Lombard rate. There had previously been increases in the repo rate of 25 basis points in early November and 20 bps last August, and the […] More

Swedish Riksbank

December 20, 2017

Sweden’s repo rate will stay at negative 0.50% after a unanimous vote of the central bank executive board. It was zero percent from October 2014 until a 10-basis point cut in February 2015 pushed policy into negative interest rate territory. Three more cuts over the ensuing year depressed the repo rate to -0.5% in February […] More

Bank of Thailand

December 20, 2017

By unanimous vote, the one-day repo rate was left at 1.50%, which has been its level since back-to-back 25-basis point cuts in March and April of 2015. Thailand’s monetary policy committee members are in no hurry to start raising interest rates even though projected GDP growth was revised up 0.1 percentage point to 3.9% this […] More

Central Bank of Hungary

December 20, 2017

The central bank’s monetary council again kept the Hungarian base rate at 0.90%, its level since a 15-basis point reduction in May of last year. Inflation still hasn’t risen in a sustained manner to the central bank target, and officials do not expect that happening until the middle of 2019. The post-policy review statement asserts, […] More