Central Bank Watch

FOMC Preview

January 29, 2020

The FOMC is not expected to change interest rates. The decision will be announced at 14:00 EST and followed 30 minutes later by Chairman Powell’s press conference. Three 25-basis point rate cuts were implemented in 2019, but the dot-plot diagram of individual member rate expectations after the December FOMC meeting seven weeks ago revealed an […] More

ECB President Lagarde’s Introductory Press Conference Statement

January 23, 2020

The ECB Governing Council’s first policy meeting of 2020 ended as expected with no change in its interest rate structure, including a negative 0.5% deposit rate since a 10-basis point cut last September. The Bank will continue quantitative stimulus of EUR 20 billion per month and, as previously announced by President Lagarde, is beginning a […] More

Bank of Canada Maintains Overnight Interest Rate Target at 1.75%

January 22, 2020

This month’s meeting of Canadian monetary policymakers coincided with the release of an updated quarterly Monetary Policy Report. The released policy statement announcing that the key interest rate is being kept at 1.75% acknowledges a softer-than-anticipated patch of economic growth in late 2019 due to a number of factors including strikes, inventory adjustments, poor weather […] More

Unexpected Central Bank Rate Cut in Malaysia

January 22, 2020

Bank Negara Malaysia became the third major central bank within a week to cut its key interest rate following moves last Thursday by the South African Reserve Bank and the Central Bank of the Republic of Turkey. BNM’s key interest rate was cut 25 basis points to 2.75%, its lowest level in almost nine years. […] More

Bank of Japan Leaves Policy Settings Unchanged

January 21, 2020

This month’s Bank of Japan meeting of the Policy Board concluded with no change in policy settings and the release of the quarterly Outlook for Economic Activity and Prices which includes a perplexing mix of upgraded growth forecasts but downgraded estimates of future core inflation. The announcement of no policy change after four hours and […] More

South African Reserve Bank Repo Rate Sliced 25 BPS to 6.25%

January 16, 2020

Policymakers at the South African Reserve Bank voted unanimously to cut the central bank’s repo rate by a further 25 basis points to 6.25%. This follows an initial 25-bp cut last July that reversed a 25-bp hike in November 2018. In a released statement, bank officials announced downward revisions to the growth path, which overall […] More

Interest Rate Cut in Turkey

January 16, 2020

The Central Bank of the Republic of Turkey’s one-week repo rate was cut by 75 basis points to 11.25%. Analysts had been projecting a likely 50-bp cut. Today’s moves follow consecutive cuts of 425 basis points last July, 325 bps at September’s meeting, 250 bps in October and 200 bps last month. Even though the […] More

Bank of Mexico’s Fourth Interest Rate Cut since August

December 19, 2019

The four 25-basis point central bank rate cuts in 2019 reverse the four hikes made in 1918, but the new 7.25% overnight interbank rate level is still four percentage points higher than the end-2015 level. A released statement explaining today’s rate reduction cites continuing sluggish growth, a weak economic outlook, growth and inflation risks skewed […] More

Swedish Riksbank Ends Negative Policy Rate Stance

December 19, 2019

The Executive Board of the Swedish Riksbank raised the repo rate to zero¬† percent from -0.25%. Sweden’s central bank had been the first to experiment with a negative policy interest rate. Last January, such had been raised 25 basis points to -0.25%. A released statement from policymakers said policy remains expansionary. The repo rate is […] More

Bank of Russia Eases Again

December 13, 2019

The Central Bank of the Russian Federation reduced its key interest rate by a further 25 basis points to 6.25%, bringing the accrued decline since July to 150 basis points. Moreover, a released statement provides forward guidance that officials during the first half of 2020 will ease further if conditions continue to warrant such. Inflation […] More