Central Bank Watch

South Korean Central Bank Rate Cut after Big Downward Growth Forecast Revision

May 28, 2020

Another central bank interest rate cut was announced today, this time by the Bank of Korea, where by a unanimous decision the 7-day repo rate was lowered 25 basis points to 0.50%. This was the second cut of 2020 following a 50-basis point reduction back in March. The 0.50% level represents what officials have considered […] More

40-Basis Point Indian Central Bank Interest Rate Cut on Top of March’s 75-Basis Point Reduction

May 22, 2020

The Reserve Bank of India Monetary Policy Committee also held an emergency policy review ahead of the regularly scheduled one previously set for early June. The Committee announced a 40-basis point reduction of its repo rate to 4.0%, which follows a previous 75 basis point cut in late March. Officials released a statement enumerating a […] More

Bank of Japan Board Holds Emergency Session

May 22, 2020

The Bank of Japan held an emergency unscheduled policy Board meeting that lasted just under an hour and did not change the the short-term policy interest rate of -0.1% or the 10-year JGB yield target of around zero percent. However, officials did unveil a new lending facility for small to mid-sized firms and moved out […] More

South Africa’s Fourth Central Bank Rate Cut since January

May 21, 2020

The South African Reserve Bank repo rate was lowered 50 basis points to 3.75% following a 3-2 vote, with dissents favoring only a 25-basis point reduction. Today’s easing brings to 275 bps the total rate reduction since mid-January. In a released statement, the Monetary Policy Committee anticipates two cuts of 25 basis points each in […] More

Turkey’s Fifth Interest Rate Cut of 2020

May 21, 2020

The Central Bank of Turkey‘s one-week repo rate was cut 50 basis points further to 8.25% today in a move that had been expected and that brings the total decline so far this year to 375 basis points. The new rate level of 8.25% compares to an end-2019 level of 12.0%. Officials released a statement […] More

Central Bank of Iceland Eases More Sharply

May 20, 2020

The Central Bank of Iceland’s 7-day term rate has been slashed to 1.0% from 1.75%, bringing this year’s total amount of decline to two percentage points. The intent of today’s action according to a released statement is to promote money velocity and to strengthen policy transmission, as officials also withdrew the offer of 30-day term […] More

Thailand Gets Another Central Bank Interest Rate Cut

May 20, 2020

The Bank of Thailand has implemented its third 25-basis point policy interest rate cut of 2020 and fifth such move since August 2019. The one-week repo rate now becomes 0.50%. There were three dissenters on the policy-deciding 7-person committee who didn’t want this change. A released statement sets the context for this additional easing: ” […] More

State Bank of Pakistan’s Policy Interest Rate Cut for Fourth Time in Space of Two Months

May 15, 2020

Pakistan’s key central bank rate was at 13.25% as recently as March 16 but now falls to 8.0%, thanks to two reductions in March totaling 225 basis points, a third cut of 200 bps a month ago and a fourth announced today by the Monetary Policy Committee of 100 basis points after an emergency meeting. […] More

Bank of Mexico’s Fourth Straight Rate Cut …and More Likely in Future

May 14, 2020

The first overnight rate cut of 25 basis points done in February has been followed by 50-basis point moves in March, April and now May. Today’s action was larger than some analysts anticipated but decided by a unanimous 5-0 vote. The key rate’s new level of 5.5% represents a 3-1/2 year low and a total […] More

Czech National Bank Cuts 2-Week Repo Rate

May 7, 2020

The Czech National Bank‘s two-week repo rate was slashed by a greater-than-forecast 75 basis points to 0.25%. The Lombard rate has been lowered to 1.0%, and the deposit rate will stay at 0.05%. In spite of a 25-basis point hike of the repo rate announced February 6, the key rate is now 175 basis points […] More