Central Bank Watch

ECB Officials Becoming More Optimistic But Not Enough So to Reduce Stimulus

April 27, 2017

A statement released after today’s meeting of the European Central Bank Governing Council proclaims, “that the cyclical recovery of the euro area economy is becoming increasingly solid and that downside risks have further diminished” but goes on to say “underlying inflation pressures continue to remain subdued and have yet to show a convincing upward trend. […] More

Bank of Japan

April 27, 2017

After meeting for five hours and sixteen minutes over two days, the BOJ Policy Board released a monetary policy statement that reads the same verbatim as the prior March document including footnoted text explaining the dissenting views of committee hawks Sato and Kiuchi. A new quarterly Outlook for Economic Activity and Prices was published concurrently […] More

Swedish Riksbank Policy Continues to Be Very Accommodative

April 27, 2017

A released statement after today’s Executive Board meeting signaled that the negative 0.50% repo rate will not be raised above that level until at least mid-2018, later than indicated previously, and extended the program of government bond purchases through the second half of 2017. By end-2017, SEK 290 billion will have been bought under this […] More

Turkish Central Bank Leaves Interest Rates at Already Elevated Levels

April 26, 2017

The Central Bank of Turkey’s overnight lending rate had previously been raised by 25 basis points in late November and 75 basis points two months later to the current level of 9.25%. The one-week repo rate was also lifted back in November by 50 basis points to its present level of 8.0%, while the overnight […] More

Central Bank of Hungary

April 25, 2017

At this month’s meeting of Hungary’s Monetary Council, officials left interest rates including the 0.90% Base Rate unchanged as expected. The rate was slashed from 7.0% prior to August 2012 to 2.1% over the ensuing two years, reduced by a further 75 basis points in March-July of 2015 and again by 45 basis points in three […] More

No Change in Indonesia Monetary Policy

April 20, 2017

As analysts expected, Bank Indonesia’s seven-day reverse repo rate, the main policy benchmark, was left at 4.75%, the level since a sixth and final 25-basis point reduction made during 2016. This occurred last October and followed similar moves in January, February, May, June, and September. Monetary officials also left their overnight deposit and lending rates […] More

Semi-Annual Review of Singapore’s Monetary Policy

April 13, 2017

The Monetary Authority of Singapore does not target an interest rate. Instead, monetary policy in a domestic money market sense is derivative of currency policy. The goal is a target corridor for the Singapore dollar’s trade-weighted value. Goals are made for the width of the currency band, its slope over time, and the mid-point between […] More

Bank of Korea

April 13, 2017

South Korea’s central bank base rate was cut five times from August 2014 to June 2016 by a total of 125 basis points, halving the key interest rate to 1.25%. While modestly bumping up projected GDP growth in 2017 from 2.5% that was forecast three months ago, monetary officials still anticipate only moderate expansion and […] More

Full Percentage Point Reduction of the Brazilian Selic Interest Rate

April 12, 2017

The monetary policy committee at the Central Bank of Brazil, known as Copom, cut the Selic rate to 11.25% from 12.25%. This larger incremental cut after ones of 75 basis points in both January and February and 25 bps each last October and November was deemed appropriate according to a released statement. Analysts were anticipating […] More

Bank of Canada Leaves Policy Rate at 0.5%, Projects Modest Growth and Inflation Dipping by Mid-2017

April 12, 2017

Canada’s overnight interest rate target has been 0.50% since cuts of 25 basis points engineered in January and July of 2015. While there’s no urgency to begin tightening as the Federal Reserve is doing, all consideration of a near-term cut has been removed since January due to stronger-than-anticipated growth early this year. Excess slack in the […] More