Central Bank Watch

Poland’s Second 50-Basis Point Central Bank Cut Since March 17th

April 8, 2020

Poland’s central bank reference rate has been halved to 0.50% and henceforth will be surrounded by a zero percent deposit rate and a 1.0% Lombard rate. There had been an initial monetary¬† policy response to Covid-19 on March 17, including a 50-basis point interest rate cut, liquidity injections via repo operations, and a program of […] More

Israeli Central Bank Rate Cut 15 Basis Points to 0.15%

April 6, 2020

The Bank of Israel’s monetary policy rate has been lowered back to the low of 0.10% that prevailed from January 2015 until a 15-basis point increase in late November 2018. Previously, the rate had crested at 3.25% prior to 2011 but was lowered by 75 basis points per year over four consecutive calendar years through […] More

25-Basis Point Cut in Sri Lankan Central Bank Policy Rates

April 3, 2020

The Monetary Board at the Central Bank of Sri Lanka held an emergency session today in which members agreed to cut the Standing Deposit Facility rate to 6.0% from 6.25% and the Standing Lending Facility rate also by 25 basis points to 7.0%. Just 18 days earlier also at an unscheduled meeting, these rates were […] More

Chile’s Secend Central Bank Rate Cut in March and Fifth Reduction Since Mid-2019

April 2, 2020

The Central Bank of Chile Board authorized a 50-basis point reduction of its policy interest rate on March 31 by unanimous vote just two weeks after an emergency meeting that cut such by 75 basis points on the 16th. In the second half of 2019, officials had also engineered cuts of 50 basis ponts in […] More

Monetary Policy Eased in Singapore

March 30, 2020

The semi-annual monetary policy review by officials at the Monetary Authority of Singapore cut the slope of the Singapore dollar’s allowed trading range to zero percent. This matches the slope allowed from April 2016 through April 2018. The center of the trading band will be is present level, and the width of the band remains […] More

Third 50-Basis Point Canadian Central Bank Rate Cut Since March 4

March 27, 2020

At a regularly scheduled Governing Council meeting on March 4, the Bank of Canada’s overnight policy rate was cut to 1.25% from 1.75%, a level that had prevailed since a 25-basis point hike in October 2018. A statement released after that meeting observed that Canadian GDP was close to potential and inflation near target but […] More

Reserve Bank of India’s Repo Rate Cut by 75 Basis Points

March 27, 2020

The Reserve Bank of India is the latest central bank to call an emergency meeting and approve a slew of stimulus measures. These include a 75-basis point cut of the repo rate to 4.40%, which brings the cummulative drop to 135 basis points since last August and to 210 basis points over the past 13 […] More

Czech National Bank Reduces Two-Week Repo Rate to 1.0%

March 26, 2020

Ten days after an inter-meeting 50-basis point rate reduction on March 16, Czech National Bank officials at today’s scheduled meeting authorized a further 75-basis point rate cut, declaring in a released statement that the Czech economy likely faces a strong domestic recession for most of the rest of 2020 and that such will likely exert […] More

Czech National Bank Officials Ready to Ease More If Necessary

March 26, 2020

At an intermeeting meeting of the CNB Governing Board on March 16 reduced the two-week repo rate to 1.75% from 2.25%. Minutes of that meeting include forward guidance that further monetary relief may be undertaken. The Board agreed on the need to lower the CNB’s key interest rates and thereby ease the monetary conditions beyond […] More

Bank of England’s Scheduled Policy Review Today Didn’t Augment Steps Taken Earlier in the Month

March 26, 2020

The Bank of England’s Monetary Policy Committee had lowered the bank rate from 0.75% to 0.25% on March 11 and by a further 15 basis points to 0.10%, a record low, on March 19. Officials also had lifted the ceiling on the purchases of gilt securities and corporate bonds to GBP 645 billion and had […] More

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