Central Bank Watch

Swedish Riksbank

July 1, 2020

The Swedish Riksbank repo rate was left unchanged at zero percent. It’s been at that level since a 25-basis point hike last December. In mid-March, however, officials at an unscheduled emergency meeting agree to purchase SEK 300 billion of assets during 2020 and to increase loans to banks. Today, those programs were loosened.  The asset […] More

Central Bank of Colombia

July 1, 2020

The Central Bank of Colombia’s policy interest rate was reduced 25 basis points to a record low of 2.50%. The decision drew one dissent. CPI inflation slowed over a half percentage point in May, and both it and expected inflation are now below the 3% objective. Colombia’s labor market has deteriorated recently, and recovery in […] More

Another Mexican Central Bank Interest Rate Cut

June 25, 2020

The Governing Board unanimously cut the overnight interbank interest rate by 50 basis points to 5.0%. This was the fourth straight monthly cut of 50 basis points, and there was also a 25 basis point cut made in February and three 25-bp reductions during the last four and a half months of 2019. The rate […] More

Fourth Filipino Central Bank Rate Cut of 2020

June 25, 2020

At the Central Bank of The Philippines, the key overnight reverse repo rate was reduced by 50 basis points to 2.25%. Such had been also cut by a half percentage point in both March and April and by 25 basis points back in February. Officials released a statement, identifying a deterioration in global GDP conditions […] More

Hungary’s First Base Rate Cut in Four Years

June 23, 2020

The base rate of the Central Bank of Hungary, which had been at 0.90% since a 15-basis point reduction exactly four years ago, was reduced by another 15 basis points to 0.75%. CPI inflation this year is expected to hover between 3.0% and 3.5% and to average even less in 2021. The overnight deposit rate […] More

Bank of Russia Interest Rate Reduced Full Percentage Point

June 19, 2020

The Central Bank of Russia lowered its one-week repo rate by a full percentage point to a record low of 4.5%, bringing the net drop this year to 175 basis points. The rate earlier was cut 25 bps in February and by 50 bps in April. More monetary relief is moreover still in play according […] More

Indonesian Interest Rate Cut

June 18, 2020

Indonesia’s policy interest rate has been reduced 25 basis points to 4.25%. This was the third such drop in 2020 following 25-basis point cuts in February and May. Officials at Bank Indonesia likely was sliced 25 basis points from their overnight deposit and lending rates to create a new corridor that runs from 3.5% to […] More

Central Bank of Brazil Authorizes 75-Basis Point Rate Cut

June 18, 2020

As was expected, Brazil’s monetary policy committee known as Copom cut its Selic interest rate by another 75 basis points to 2.25% and matching the reduction made in May. A pair of 25-basis point reductions were done earlier in February and March. In a released statement from the Central Bank of Brazil, however, officials noted […] More

Swiss National Bank Keeps -0.75% Interest Rate Target

June 18, 2020

The scheduled quarterly monetary policy review at the Swiss National Bank ended with officials leaving their policy rate unchanged at negative 0.75% and doubling down on the need for forceful currency market intervention to counter safe-haven demand and limit the franc’s appreciation. GDP is projected to drop 6% this year in a released statement, and […] More

Bank of England Expands Quantitative Stimulus

June 18, 2020

The Bank of England by a vote of 8-1 increased its asset buying ceiling from GBP 645 billion to a new level of GBP 745 billion. The Monetary Policy Committee members expect to hit that ceiling by the end of 2020. The program was raised back on March 19 by GBP 200 billion from a […] More

css.php