Central Bank Watch

Bank of Korea Leaves Interest Rate the Same but Reduces 2019 Growth and CPI Forecasts

April 18, 2019

As expected, the Bank of Korea’s 1.75% base rate was left unchanged. This represents an “accommodative” stance, according to a released statement. Officials argue that “it is expected that the domestic economy will continue to grow at a rate that does not diverge significantly from its potential level, and it is forecast that inflationary pressures […] More

FOMC Minutes

April 10, 2019

Today’s published FOMC minutes from the March 19-20 meeting do not include startling revelations not covered at Chairman Powell’s press conference. It was one of the most newsworthy meetings in a considerably long time, as policymakers scrapped plans for rate hikes in 2019 and implied no more than one hike in 2020, announced a decrease […] More

ECB Governing Council Meeting: No Change in Stance Was Expected, and None Got Delivered

April 10, 2019

At the ECB Governing Council meeting, the structure of Euroland central bank interest rates since March 2016 (a zero percent refinancing rate flanked by an overnight deposit rate of -0.40% and a marginal lending facility rate of 0.25%), was again retained, and forward guidance reaffirmed that rates would stay at present levels or lower at […] More

Back-to-Back Central Bank Rate Cuts in India Reverse Last Year’s Increases

April 4, 2019

Officials at the Reserve Bank of India cut its repo rate and reverse repo rate each by 25 basis points to 6.0% and 5.75%, respectively. The cuts were decided by a 4-2 voting margin, with two dissents favoring no change. Reductions of 25 basis points had also been implemented after the prior policy review in […] More

Czech National Bank Policy Rate Unchanged

March 28, 2019

The Czech two-week repo rate was lifted from a low of 0.05% by 45 basis points in 2017 and 125 basis points last year to its current level of 1.75%. Two of seven rate policy deciders, who favored another 25 basis point hike now, were overruled by a majority to leave the key interest rate […] More

South African Reserve Bank Repo Rate Left Unchanged as Expected at 6.75%

March 28, 2019

Despite a 6+% decline since the prior policy review in January, South Africa’s Monetary Policy Committee decided unanimously to keep the repo rate unchanged at 6.75% after its second scheduled review of 2019. The rate had been raised by 25 basis points at the final 2018 policy meeting four months ago but kept steady after […] More

Hungary Gets First Central Bank Interest Rate Hike in Since December 2011

March 26, 2019

The Monetary Council of Magyar Nemzeti Bank chose a time when many central banks including the Fed and ECB have turned more dovish to implement its first interest rate hike since a 50-basis point increase of the Base Rate way back in December 2011. That rate is now just 0.90% and was not changed at […] More

Russian Central Bank Indicates Interest Rate May Be Cut Later this Year

March 22, 2019

The Central Bank of the Russian Federation maintained a one-week repo rate of 7.75% after its latest monetary policy review. The key interest rate was increased a quarter of a percentage point twice last year in September and then in December, but a statement released today revised projected inflation this year downward by 0.3 percentage […] More

Bank of England’s Policy Settings Unchanged

March 21, 2019

The Bank of England as expected did not change its 0.75% Bank Rate, which earlier had been raised twice by 25 basis points, initially in November 2017 and then in August 2018 to 0.75%, highest since March 2009. Nor were quantitative policy tools modified, and both decisions were made unanimously as expected. In a released […] More

Swiss National Bank Keeps Policy the Same but Lowers Projected CPI Inflation Path

March 21, 2019

At the latest quarterly review of Swiss monetary policy, SNB officials kept policy unchanged. Since January 2015, when the automatic cap on Swiss franc was lifted and the interest rate target was cut by 50 basis points, the 3-month Libor rate target band has been an all-negative range of minus 1.25% to minus 0.25%, the […] More

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