Central Bank Watch

European Central Bank

January 19, 2017

All things considered, the Governing Council of the ECB sent a dovish signal to the marketplace but announced no policy modifications after the first of eight scheduled reviews in 2017. Consider, for example, that on-year inflation in the most recent twelve months compared to the previous 12 months through December 2015 had risen by 1.5 […] More

Bank Negara Malaysia

January 19, 2017

Following a percentage point of tightening in 2010-11 and a subsequent 25-basis point hike in July 2014, the Malaysian overnight money rate target had stood at 3.25% until a 25-basis point reduction last July. Inflation has eased following the lapse of Malaysia’s goods and services tax, prompting the incentive for the central bank rate cut, which […] More

Bank Indonesia Reaffirms Monetary Stance

January 19, 2017

Cuts of 25 basis points in the Indonesian seven-day reverse repo rate were undertaken last year in January, February, May, June, September and October. The resulting 4.75% rate level during the past three months was extended at the first policy review of 2017. A released statement asserts that the monetary stance associated with this rate […] More

Bank of Canada’s Interest Rate Target Kept at 0.50%

January 18, 2017

The Governing Council retained a 0.5% target interest rate. That’s been the level since reductions of 25 basis points in January 2015 and July 2015. Officials just completed a review quarterly that hardly changed macroeconomic projections last made in October and that concluded that the existing monetary stance is still appropriate. A statement explaining today’s […] More

Bank of Korea Maintains a Loose Monetary Stance

January 13, 2017

At this year’s first interest rate policy meeting, officials at the Bank of Korea left the seven-day repo rate at a record low of 1.25%, its level since a 25-basis point cut last June. Similarly sized reductions were engineered in August and October of 2014 and March and June of 2015. A statement released today noted […] More

Central Reserve Bank of Peru

January 12, 2017

Although Peru’s key central bank rate was left at 4.25%, its level since the last February’s last of four cuts of 25 basis points each in the space of five months, a released statement revises projected inflation over the coming year up slightly and observes that “the water deficit generated by adverse climate factors has been […] More

National Bank of Serbia Retains 4.0% Interest Rate

January 12, 2017

From an April 2013 high of 12.25%, the Serbian central bank interest rate was reduced 275 basis points later that year, 150 bps in 2014, 350 bps in 2015, and by 25 bps each in February and July of last year. A statement following today’s decision to keep the rate at 4.0% projects low, stable […] More

Pace of Brazilian Monetary Easing Moves to Higher Gear

January 11, 2017

Copom, the monetary policy committee, voted unanimously to reduce the Selic interest rate to 13.0% from 13.75%. This was the third cut since October but three times more sizable than the first two moves. Prior to the current round of easing, the Selic rate was increased from 7.25% in April 2013 to 11.0% a year […] More

National Bank of Poland

January 11, 2017

The 1.5% central bank reference rate since a 50-basis point cut in March 2015 was decreed still appropriate in a released statement that observes slower growth last quarter, projects moderate growth this year, and attributes a rise of inflation to 0.8% as of December to “factors beyond the direct impact of domestic monetary policy.” Price […] More

Review of FOMC Minutes

January 4, 2017

Minutes of the Federal Open Market Committee’s December meeting that hiked the federal funds range target by 25 basis points to 0.50 – 0.75% paid only scant attention the disinflationary risk of dollar appreciation: Several, participants, however, pointed out that market-based measures of inflation compensation were still low or that downside risks to inflation remained, […] More

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