Central Bank Watch

Central Bank of Russia

March 23, 2018

The Board of Directors of the Russia’s central bank lowered the one-week repo rate another notch to 7.25% from 7.5% and served further notice in a released statement that they intend to “continue to reduce the key rate and will complete the transition to neutral monetary policy in 2018.” Officials noted that “annual inflation remains sustainably low” and predicted […] More

Bank of England

March 22, 2018

The surprising element is the latest monetary policy review was not that the Bank Rate was left at 0.5% or that no change was made to the stock of bank holdings of gilts and corporate bond purchases. It is that the decision to leave the interest rate as is drew dissenting votes from McCafferty and […] More

Bangko Sentral ng Pilipinas

March 22, 2018

Filipino officials didn’t tighten their monetary stance at the latest review but left the door open to such a move in the future. The overnight reverse repo rate and lending rate have been at 3.0% and 4.0% for some time. In mid-2016, officials switched from a point target to a 3-4% target range. A released […] More

Bank Indonesia

March 22, 2018

Indonesia’s seven-day reverse repo rate was last changed in September 2017 when such was sliced 25 basis points to 4.25%. The March monthly review kept it there as well as retaining the deposit facility rate and lending facility rate at 3.5% and 5.0%, respectively. The repo rate was also reduced by 25 bps in June  […] More

Central Bank of the Republic of China (Taiwan)

March 22, 2018

At the end of the latest policy review, Taiwanese monetary officials retained a 1.375% discount rate. It’s been at that level since four consecutive cuts of 12.5 basis points from September 2015 through the meeting in June 2016. Taiwan continues to experience positive growth and stable, sub-2% inflation. The appropriateness of the present interest rate […] More

Reserve Bank of New Zealand Cash Rate Remains 1.75%

March 22, 2018

Seven consecutive cuts in the Official Cash Rate between June 2015 and November 2016 halved such to 1.75%, and a statement following the latest policy review opines that the stance is likely to remain accommodative “for a considerable period” longer. Partly because of weather, economic growth last quarter was slower than expected, but central bank […] More

Central Bank of Brazil Extends Declining Rate Cycle

March 21, 2018

The Brazilian Selic rate was reduced by an additional 25 basis points to 6.50%, extending its cumulative drop to 775 basis points during the last year and a half. Inflation is below 3% and the target midpoint of 4.5%. The monetary policy committee, Copom, released a statement expressing satisfaction with Brazil’s recovery, the global environment, […] More

FOMC Review

March 21, 2018

As expected and revealed in a published statement and new economic projections, the Fed implemented a sixth 25-basis increase in its federal funds target range to 1.50-1.75% and upgraded its forecasts GDP growth in 2018 and 2019, the labor market over the coming three years, and the core PCE inflation index for 2019 and 2020. […] More

Central Bank of Colombia

March 21, 2018

Colombia’s monetary policy interest rate was left unchanged at 4.5%. It had been reduced by 25 basis points this past January and before that by 25 bps in December 2016, February 2017, March 2017, May 2017, July 2017, August 2017, October 2017, and November 2017, as well as by 50 basis points last April and […] More

Chilean Policy Rate Left at 2.5%

March 20, 2018

The Central Bank of Chile’s Board voted unanimously to keep its 2.5% monetary policy interest rate. It reached that level in May 2017 after the last of four 25-basis point cuts that year. A statement released after the policy review observed two somewhat offsetting developments. On the one hand, the economy grew a little faster […] More