Central Bank Watch

Bank of Canada Tightens Further

July 11, 2018

Canada’s overnight target central bank rate was lifted to 1.50% today. Bank of Canada officials had prepared markets to expect such a move today. It follows similar 25-basis point increases enacted in September 2017, January 2018 and, most recently, May 2018. A released statement of explanation points to more normalization in the future. Governing Council […] More

Swedish Riksbank

July 3, 2018

Sweden’s repo rate was kept at negative 0.50%, and a new statementĀ from the Executive Committee did not change previous forward guidance that a gradually rising trend is likely to begin late this year. One dissenting committee member wanted a 25-basis point hike now, and another favored saying such would occur in September or October. Projected […] More

Reserve Bank of Australia

July 3, 2018

As was expected, Australia’s Official Cash Rate (OCR) was left at the record low of 1.50% that it has been at since a 25-basis point cut in August 2016. A released statement from Governor Lowe exhibits no near-term possible consideration of raising such. Several risk factors and other justifications are mentioned to keep the status […] More

Third Indonesian Central Bank Interest Rate Hike Since May 17th

June 29, 2018

Bank Indonesia’s Board of Governors today raised the 7-day reverse repo rate by a greater-than-expected 50 basis points to 5.25%. The move followed quarter percentage points hikes on May 17 andĀ  May 31 and was accompanied by 50-bp increases in Indonesia’s overnight deposit rate to 4.5% and lending rate to 6.0%. A statement released after […] More

No Plans to Lift New Zealand’s Official Cash Rate Anytime Soon

June 28, 2018

The best contribution we can make to maximising sustainable employment, and maintaining low and stable inflation, is to ensure the OCR is at an expansionary level for a considerable period. So concludes today’s Reserve Bank of New Zealand’s released statement following the decision to retain the OCR at a record low of 1.75%. The OCR […] More

Bank of Thailand: No Change

June 20, 2018

Thailand’s one-day repo rate was kept at 1.5% by a vote of 5-1. It’s been at that level since a 25-bp cut in April 2015. Unlike some Asian economies, Thailand runs a current account surplus. Inflation still lies below the 1-4% target midpoint. Officials took this occasion to raise projected GDP growth this year and […] More

Bank of Japan Leaves Policy Unchanged, Downgrades Inflation Outlook

June 15, 2018

Following four hours six minutes of discussion on Thursday and Friday, the Bank of Japan Board voted 8-1 to maintain its policy of quantitative and qualitative monetary easing with yield curve control. The key elements of this stance are A negative 0.1% short-term policy interest rate target. A target of around zero percent on the […] More

Bank of Russia Retains 7.25% Main Interest Rate

June 15, 2018

Russian monetary easing is on pause. The rate had been last cut by 25 basis points in both February and March and before that by a full percentage point during March-June of 2017 and 125 basis points during the final quarter of last year. But after leaving the one-week repo rate at 7.25% following this […] More

ECB Decisions and Draghi Press Conference

June 14, 2018

Investors found the ECB message today somewhat more dovish than feared. To be sure, the released introductory statement confirmed that new asset purchases will be completed by the end of this year. Draghi’s statement asserts that “progress towards a sustained adjustment in inflation has been substantial so far. With longer-term inflation expectations well anchored, the […] More

Monetary Policy on Hold at Central Bank of Chile

June 14, 2018

The monetary policy rate has been 2.5% since four 25-basis point cuts implemented within the first five months of 2017, and yesterday’s decision announced late in the day again resulted from a unanimous vote. Officials released a statement that revised the near-term inflation forecast upward due to oil price developments and a depreciated Chilean peso, […] More