Central Bank Watch

South African Reserve Bank Repo Rate Sliced 25 BPS to 6.25%

January 16, 2020

Policymakers at the South African Reserve Bank voted unanimously to cut the central bank’s repo rate by a further 25 basis points to 6.25%. This follows an initial 25-bp cut last July that reversed a 25-bp hike in November 2018. In a released statement, bank officials announced downward revisions to the growth path, which overall […] More

Interest Rate Cut in Turkey

January 16, 2020

The Central Bank of the Republic of Turkey’s one-week repo rate was cut by 75 basis points to 11.25%. Analysts had been projecting a likely 50-bp cut. Today’s moves follow consecutive cuts of 425 basis points last July, 325 bps at September’s meeting, 250 bps in October and 200 bps last month. Even though the […] More

Bank of Mexico’s Fourth Interest Rate Cut since August

December 19, 2019

The four 25-basis point central bank rate cuts in 2019 reverse the four hikes made in 1918, but the new 7.25% overnight interbank rate level is still four percentage points higher than the end-2015 level. A released statement explaining today’s rate reduction cites continuing sluggish growth, a weak economic outlook, growth and inflation risks skewed […] More

Swedish Riksbank Ends Negative Policy Rate Stance

December 19, 2019

The Executive Board of the Swedish Riksbank raised the repo rate to zero  percent from -0.25%. Sweden’s central bank had been the first to experiment with a negative policy interest rate. Last January, such had been raised 25 basis points to -0.25%. A released statement from policymakers said policy remains expansionary. The repo rate is […] More

Bank of Russia Eases Again

December 13, 2019

The Central Bank of the Russian Federation reduced its key interest rate by a further 25 basis points to 6.25%, bringing the accrued decline since July to 150 basis points. Moreover, a released statement provides forward guidance that officials during the first half of 2020 will ease further if conditions continue to warrant such. Inflation […] More

European Central Bank Maintains Ultra Easy Stance

December 12, 2019

The European Central Bank retained its interest rates of zero percent on the repo, a -0.5% overnight deposit rate and a 0.25% marginal lending rate. This was the first scheduled policy review chaired by Christine Lagarde, and the released statement contained the following compelling forward guidance on  interest rates and quantitative stimulus: The Governing Council […] More

Central Bank of Brazil

December 12, 2019

The Central Bank of Brazil’s Selic interest rate was cut by 50 basis points to 4.5%. This was the fourth recent reduction of a half percentage point following moves in July, September, and November. A released statement notes the decision was made unanimously and talks about comfortable levels of core inflation and confidence that inflation […] More

National Bank of Ukraine

December 12, 2019

Monetary officials at the National Bank of Ukraine implemented their fifth interest rate cut since April, accelerating the size of the reduction to 200 basis points after cuts of 100 bps in October and 50 bps each in September, July and April. The rate now falls to 13.5%. Inflation in Ukraine at 5.1% has fallen […] More

Turkish Monetary Policy Eased Further

December 12, 2019

The Central Bank of the Republic  of Turkey reduced its key interest rate to 12% from 14% today, citing weak domestic investment demand, a weakening global economic outlook, significant improvement in the current account, a stable lira that has enabled Turkish inflation to recede, a widespread drop in expected inflation, and low global price pressures. […] More

Central Bank of Brazil Cuts Selic Rate Again

December 11, 2019

For the fourth time since the end of July, Brazil’s monetary policy committee, Copom, authorized a 50-basis point cut of the Selic interest rate, which now becomes 4.5%. The action, like the earlier easings was justified but the expected “convergence of inflation to its target over the relevant horizon for the conduct of monetary policy, […] More