Central Bank Watch

Central Bank of Hungary

December 20, 2017

The central bank’s monetary council again kept the Hungarian base rate at 0.90%, its level since a 15-basis point reduction in May of last year. Inflation still hasn’t risen in a sustained manner to the central bank target, and officials do not expect that happening until the middle of 2019. The post-policy review statement asserts, […] More

Bank of Russia

December 15, 2017

Russia’s key monetary policy rate has been reduced by a greater-than-expected 50 basis points to 7.75%. A main reason why central bank officials were able to slice 50 basis points from their interest rate as they did in September and April rather than 25 bps was was done in October, June, and March is related […] More

National Bank of Ukraine

December 15, 2017

Ukraine’s central bank interest rate was raised by another full percentage point to 14.5% just seven weeks after an initial increase of 100 basis points. As in Mexico, inflation has been higher than assumed previously, and a number of price risks continue such as rising food prices, more fiscal deficit spending, some wage pressure, higher […] More

Another Rate Hike at the Bank of Mexico

December 15, 2017

Citing higher-than-desired inflation, the Bank of Mexico under a new president has raised its one-day interbank rate to 7.25% from 7.0%. This is the fourth increase of 25 bps in size this year, following ones in March, May and June. A prior 50 basis point hike last February culminated a series of six half-percentage point […] More

Central Bank Rates in Chile, Peru and Colombia Left Unchanged

December 14, 2017

The Central Bank of Chile’s main interest rate was retained at 2.5%, but a released statement expresses some concern about the effect of inflation staying below target might have on actual inflation. “The risks of a delay in the convergence of inflation associated to its current persistently low level are still present, so, if deemed […] More

Bangko Sentral ng Pilipinas

December 14, 2017

There has been a Filipino central bank rate of 3.0% since a pair of 25-basis point cuts in the third quarter of 2014, and monetary officials still see no need to change that level. A statement after the Monetary Board met concluded that the inflationary environment is broadly unchanged since the previous review, predicted in […] More

Bank Indonesia

December 14, 2017

Indonesia’s seven-day reverse repo rat has been at 4.25% since back-to-back 25-basis point cuts in August and September. This level was maintained at the final monetary policy review of 2017, along with a 3.5% deposit rate and a 5.0% overnight lending rate. Officials released at statement that calls Indonesia’s recovery “gradual and uneven” and “projects […] More

Central Bank of Norway

December 14, 2017

The policy interest rate at Norges Bank has been 0.50% since March 2016 when a 25-basis point cut culminated 175 basis points of easing since December 2011. Norway was the first central bank in Europe to experience a central bank rate hike following the Great Recession; such was a regrettably premature attempt to return to […] More

Central Reserve Bank of Turkey

December 14, 2017

Current elevated levels of inflation and recent developments in cost factors have increased the risks on expectations and the pricing behavior. Accordingly, the Committee decided to tighten the monetary policy stance. Turkish monetary officials accomplished this tweak by lifting the late liquidity window rate to 12.75%, a level still slightly shy of on-year CPI inflation, […] More

European Central Bank

December 14, 2017

ECB officials continue to strike a fine balance between hailing a better functioning economy but without encouraging markets to anticipate higher interest rates. The end-year policy review retained a negative 0.4% deposit rate and reiterated that “we continue to expect [rates] to remain at their present levels for an extended period of time, and well […] More

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