Central Bank Watch

Swedish Riksbank

November 26, 2020

The Swedish Riksbank’s repo rate has been at 0% or negative since February 2015. It’s last change, a 25-basis point hike to zero percent, was done in December 2019. A statement after the just-completed latest policy review by the central bank’s Executive Board expands the size of the asset purchase program from SEK 500 billion […] More

ECB Account Identifies Near-Term Outlook Deterioration

November 26, 2020

Minutes from the October 28-29 meeting of the European Central Bank‘s Governing Council warn of a “clear deterioration in the near-term outlook” following the strong third-quarter rebound. Known as the ECB Account, the document cites euro appreciation as well as week demand and lower wage pressures as factors behind very subdued inflation. The second Covid […] More

South African Reserve Bank

November 19, 2020

Although the South African Reserve Bank’s repo rate was left unchanged at 3.5%, the vote not to ease of 3-2 was razor-thin. Each dissenter preferred a 25-basis point cut to add to earlier easing moves this year of 25 basis points in January, 100 bps each in March and April, 50 bps in May and […] More

Rate Cut at Bangko Sentral ng Pilipinas

November 19, 2020

The Filipino policy interest rate was reduced by 25 basis points to a record low of 2.0%. This was the fifth cut of 2020, followings ones of 25 bps in February and a trio of 50-bp moves in March, April and June. The Philippines has been slammed not only by the pandemic but also a […] More

Bank Indonesia Cuts Interest Rate

November 19, 2020

A 25-basis point cut in Bank Indonesia’s seven-day reverse repo rate to 3.75% had not been anticipated today. The move follows four earlier 25-basis point reductions this year between February and July. According to an accompanying statement, the latest easing is meant to maintain liquid money markets and promote economic recovery in the face of […] More

Central Bank of Turkey Tightens Sharply

November 19, 2020

The Central Bank of Turkey¬†raised the one-week repo rate by 475 basis points to 15.0% in an action to counter inflation caused by the depreciation of the lira. Among emerging market economies, Turkey’s currency this year has been the weakest. Turkish monetary officials, like their counterparts around the world, had lowered their interest rate progressively […] More

Central Bank of Iceland

November 18, 2020

Monetary officials in Iceland cut their seven-day term deposit rate by 25 basis points to 0.75%, bringing the cumulative rate reduction since February to 225 basis points. Today’s was the first cut since a 75-basis point reduction in May. A released statement from the Monetary Policy Committee also announced that Icelandic GDP is likely to […] More

Reserve Bank of New Zealand Adds a New Feature to Monetary Stimulus

November 11, 2020

Reserve Bank of New Zealand’s scheduled policy review.¬† The record low 0.25% Official Cash Rate was not changed. Such had been cut by 75 basis points last March and from as high as 3.50% prior to June 2015. Officials also reaffirmed its quantitative stimulus intended to buy a maximum of NZD 100 billion by mid-2022. […] More

An Essentially Unchanged FOMC Statement and No Great Illuminations from Powell’s Press Conference

November 5, 2020

Today’s monetary policy from the FOMC contains no meaningful modifications from the prior one on September 16th. The two insignificant changes occur in the second paragraph, which describes economic conditions. Number one, a factor that will be keeping inflation down was described in September a “significantly lower oil prices” and now as “earlier declines in […] More

Quantitative Monetary Stimulus Raised in the U.K.

November 5, 2020

The Bank of England’s Monetary Policy Committee left its bank rate steady at 0.10% but augmented the program of government bond purchases by GBP 150 billion to GBP 875 billion. The bank rate earlier this year was cut 50 basis points on March 11 and by a further 15 bps eight days later to its […] More