Central Bank Watch

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

National Bank of Serbia

April 11, 2017

After leaving their key interest rate unchanged at 4.0%, the level since a cut of 25 bps last July,  Serbian monetary officials released a statement that again stressed their expectation that inflation will remain inside the 3.0 +/- 1.5% target range. Core inflation has been lower than headline inflation, printing at just 1.7% in February. […] More

Central Reserve Bank of Peru

April 7, 2017

Peru’s policy interest rate has been again  maintained at 4.25% even though actual inflation and expectations of future inflation in the short run have moved higher. The rate has been at this level since a 25-basis point cut in February 2016 culminated for such moves starting in September 2015. A released statement noted that growth […] More

Reserve Bank of India Keeps Repo Rate at 6.25% with a Neutral Forward Bias

April 6, 2017

This was was the third straight meeting that left the repo rate at 6.25%. That interest rate had been cut twice last year by 25 basis points each in April and October, following four reductions totaling 125 bps in 2015. At a meeting in December, the reverse repo rate had been cut to its present […] More

Bank of Israel Retains 0.10% Interest Rate

April 6, 2017

In each of four consecutive years, 2011-2014, Israel’s central bank interest rate was sliced three times by 25 basis points, and that cumulative three percentage points of rate reduction was punctuated by one final 15-basis point cut in February 2015 to 0.10%. The rate has stayed at that level ever since including after the April policy […] More

National Bank of Poland

April 5, 2017

Poland’s 7-day repo rate has been at 1.5% since a 50-basis point reduction in August 2015. That was the tenth cut since November 2012. In that span, the rate fell 325 basis points from 4.75%. According to a released statement, Poland is experiencing consumption-led growth at a moderate pace, and with unit labor costs rising […] More

Australian Official Cash Rate Left Unchanged at 1.50%

April 4, 2017

The Reserve Bank of Australia’s Board has maintained a 1.5% key interest rate since two of 25-basis point reductions in May and August of last year. Similar cuplets were engineered in October and December of 2012, May and August of 2013, such that February and May of 2015, leaving the rate to two percentage points below its […] More

Bank of Mexico Tightens Again

March 31, 2017

With the peso trading much better lately, Mexican monetary officials throttled back the size of its incremental hike of the overnight money rate to 25 basis points. However, with inflation still cresting and now above the 2-4% target  in lagged response to the peso’s steep losses prior to U.S. President Trump’s inauguration, further monetary restraint […] More

South African Reserve Bank Repo Rate Held at 7%

March 30, 2017

A statement released after the year’s second monetary policy review speaks of an improved inflation outlook over the past couple of months. GDP, which grew 0.3% last year, is projected to expand 1.2% this year (just shy of the estimated potential GDP trend of 1.4%), followed by 1.7% in 2018 and 2.0% in 2019. The […] More

Czech National Bank Policy Stays Same by Unanimous Vote

March 30, 2017

The CNB Board kept its 2-week repo rate at 0.05%, the level since November 2012, and voted to maintain its asymmetric exchange rate policy that since being imposed in November 2013 has utilized intervention when necessary to prevent the koruna from strengthening beyond 27 per euro. That hard commitment is slated to expire in three […] More