Central Bank Watch

Magyar Nemzeti Bank Keeps Hungary’s Base Rate at 0.90%

February 28, 2017

Between August 2012 and May 2016, Hungary’s central bankers reduced their Base Rate from 7.0% to 0.90%. The last eight changes, five in 2015 and three last year, were each 15 basis points in size. CPI inflation remains below the 3% target and is not expected to reach that level until sometime in the first […] More

Israel’s Central Bank Interest Rate Left at 0.10%

February 27, 2017

Two full years have now passed since the last Israeli interest rate change, a 15-basis point cut to 0.1% from 0.25% undertaken in late February 2015. A released statement observed positive on-year CPI inflation last month for the first time since August 2014. At 0.1%, such is minuscule, however, and short-term inflation expectations are still […] More

Bank of Korea

February 23, 2017

South Korea’s central bank retained a 1.25% Base Rate as was expected. That’s been the level for the past eight months. A 25-basis point reduction in June 2016 broke a one-year-long period with no change. Four 25-bp reductions had been implemented in August and October of 2014 and then March and June of 2015. A […] More

Another Brazilian Central Bank Rate Cut

February 22, 2017

Brazil’s monetary policy committee known as Copom has reduced its Selic interest rate by 75 basis points for the second time in six weeks, and as in January the decision today was made unanimously. In conjunction with 25-basis point reductions last October and November, the Selic rate of 12.25% now stands two whole percentage points […] More

Bank Indonesia

February 16, 2017

The BI Board kept its seven-day reverse repo rate at 4.75%. It was cut last year six times between January and October, each time by a quarter percentage point. A statement released today projects 5.0-5.4% growth in 2017, an improved balance of payments last quarter and in-target inflation (3-5%) during the forecast horizon. Indonesia has […] More

Swedish Riksbank Retains Very Accommodative Stance

February 15, 2017

The central bank executive board Kept the repo rate at negative 0.50%. Released a statement proclaiming a further rate cut to be likelier in the near term than any hike and forecast the repo rate no higher than zero even as late as the first quarter of 2019. Agreed to continue quantitative stimulus (bond purchases) […] More

Central Bank of Chile

February 14, 2017

A 25-basis point cut of Chile’s central bank interest rate to 3.25% had been the first reduction since October 2014. In between there were two 25-basis point increases in the final quarter of 2015. At its February meeting today, the central bank Board elected not to reduce the rate further this month but signaled a […] More

National Bank of Serbia

February 14, 2017

Similar to January’s Executive Board meeting, Serbian monetary officials agreed to leave they central bank interest rate at 4.0%, the level since a 25-basis point reduction seven months ago. There also was a 25-bp cut a year ago, 350 basis points of easing during 2015, 250 bps of easing in 2014 and 275 bps worth […] More

Another Mexican Central Bank Rate Hike

February 9, 2017

The U.S. election put Mexico in a world of hurt. A variety of policy initiatives by the new administration north of the border has weakened the peso sharply, driven Mexican import prices considerably higher and overall inflation above target, and depressed consumer and business confidence. Growth slowed last quarter. According to a released statement after […] More

Filipino Monetary Policy Unchanged After First Review of 2017

February 9, 2017

The Monetary Board at Bangko Sentral ng Pilipinas kept the overnight reverse repo at 3.0%, the overnight lending rate at 3.5%, and reserve requirements at 3.0%. A released statement continues to project in-target (2-4%) inflation this year and next. A recent rise reflects in headline inflation doesn’t reflect core items and, at 2.7%, remains in […] More