Central Bank Watch

Bank of Mexico

June 22, 2017

Mexico’s key central bank interest rate was raised for the seventh time since September and the tenth time since December 2015. Over the entire year and a half span, the rate has been lifted from 3.0%, the level between October 2014 and December 2015, to 7.0%. Today’s increase had been expected. CPI inflation of 6.3% […] More

Bank of Norway

June 22, 2017

The Executive Board at Norges Bank left the key Norwegian policy rate at 0.50% and released a statement that indicates the rate is unlikely to be raised until 2019 and then at only a gradual pace. Inflation has been lower than assumed previously despite higher-than-projected capacity usage. Inflation expectations are firmly anchored. Norway’s central bank […] More

Central Bank of The Philippines

June 22, 2017

The Filipino reverse repo rate is being maintained at 3.0%. A statement released after the latest policy review, which left all other policy settings unchanged as well, projects manageable in-target CPI inflation (2-4%) in 2017-19 but concedes that risk surrounding the forecast is tilted to the upside. Price expectations remain well-anchored, and the outlook for […] More

Reserve Bank of New Zealand Policy Rate Unchanged

June 22, 2017

From a high of 3.5% between late July 2014 and mid-June 2015, the RBNZ’s official cash rate was cut in half via seven 25-basis point reductions. The last of these occurred in November 2016 and left the OCR at its current 1.75% level. A statement released following the latest policy review defends continuing an accommodative […] More

Bank of Hungary

June 20, 2017

Hungary’s central bank left its key interest rate at 0.90% as expected and released the following statement of explanation. Some degree of unused capacity has remained in the economy, but this is likely to be gradually absorbed as output grows dynamically. The inflation target is expected to be achieved in a sustainable manner half a […] More

Peruvian Monetary Policy Rate Left at 4.0% after Being Cut in May

June 9, 2017

The Central Reserve Bank of Peru Board had cut its interest rate four weeks ago in the first policy change in fifteen months. A statement released last Thursday after its June meeting reiterates the arguments made when policy was eased in May:¬†Peru has in-target inflation, which should continue over the next two years; GDP is […] More

National Bank of Serbia

June 8, 2017

Serbia’s central bank policy interest rate was cut 775 basis points in 2013-15 and by an additional 25 basis points to 4.0% in July 2016 where such continues to remain after the latest review by officials. A statement from the Executive Board projects in-target inflation (3.0% give or take 1.5 percentage points) during the next […] More

ECB Leaves Policy Settings Same, Boosts Projected Growth but Trims Projected Inflation

June 8, 2017

The European Central Bank retained its refinancing rate at zero, its deposit rate at negative 0.40%, its marginal lending facility rate at +0.25%, and quantitative stimulus was reaffirmed at a monthly pace of EUR 60 billion through December 2017, “or beyond if necessary, and in any case until the Governing Council sees a sustained adjustment […] More

National Bank of Poland

June 7, 2017

Poland’s reference interest rate was left at 1.5%, its level since a pair of 50-basis point cuts in January and March of 2015. From November 2012 to July 2013, the rate was earlier sliced from 4.75% to 2.50%. A statement released today observed that economic growth in Poland had accelerated last quarter and was led […] More

Reserve Bank of Australia

June 7, 2017

The June Board meeting on the 6th left Australia’s Official Cash Rate at 1.5% as expected. It was last changed in August 2016, a cut from 1.75%, and similar-sized reductions were authorized in October and December 2012, May and August 2013, February and May 2015, and May 2016. The main revelation from the released statement¬†from […] More