Central Bank Watch

Third Cut of National Bank of Ukraine Easing Cycle, and Many More to Come

September 5, 2019

Ukraine’s central bank policy rate has been cut by 50 basis points to 16.5%. This follows similar-sized easings earlier this year in April and July. Since officials consider 8% to be the rate level that represents a neutral monetary stance and since officials believe that CPI inflation, which is now at 9.1%, will continue falling  […] More

Swedish Repo Rate Kept at -0.25% But Statement More Guarded

September 5, 2019

The Swedish Riksbank kept its repo rate unchanged at minus 0.25% as had been expected. Although forward guidance in the released statement from the Executive Board of the central bank still implies a second rate increase within the next couple of months, official confidence in that path has declined. “However, market rates have fallen substantially […] More

Bank of Canada Holds Fire and Leaves Policy Interest Rate Unchanged at 1.75%

September 4, 2019

Canada’s overnight target rate has been 1.75% since the last of five 25-basis point hikes spaced between July 2017 and October 2018. With one after another central banks caving in to the global trends of slower growth, subdued wage and price pressure, and falling long-term market interest rates, the Bank of Canada Board stood its […] More

Chilean Central Bank Interest Rate Cut by 50 Basis Points in Unanimous Decision

September 4, 2019

The Central Bank of Chile became the latest monetary authority to cut interest rates in the face of a deteriorating global landscape. Chile’s monetary policy rate was cut by 50 basis points for the second time in three months and now becomes 2.0%, its lowest level since early September of 2010. The vote to ease […] More

Israeli Central Bank Interest Rate Left Unchanged but Released Statement Is Decidedly More Dovish

August 28, 2019

The Monetary Committee’s assessment is that in view of the turnaround in the inflation environment in Israel and in the monetary policies of major central banks, the slowing in the global economy, and the continued appreciation of the shekel, the interest rate will not be increased for an extended period. Moreover, if necessary, the Committee […] More

Sedlabanki Officials Ease Monetary Policy Again

August 28, 2019

The Central Bank of Iceland’s key seven-day interest rate was cut for the fourth time in 2019, following moves in March, May, and June. The 3.50% new rate level is down 125 basis points altogether after today’s latest 25-bp adjustment. In a released statement from the Monetary Policy Council, officials said inflation expectations had eased […] More

Hungarian National Bank Interest Rates Left Unchanged

August 27, 2019

There was no interest rate change as anticipated at this month’s monetary policy review by the Magyar Nemzeti Bank Council. The base rate has been at 0.90% since a 15-basis point cut in May 2016. The overnight deposit rate was raised 10 basis points last march to -0.05%, reversing a similarly sized cut in September […] More

Central Bank of Sri Lanka’s Interest Rates Cut by 50 Basis Points in Mostly Unexpected Move

August 23, 2019

Friday brought word of another central bank rate cut. This time it involved the Central Bank of Sri Lanka. The rate cut size was 50 basis points each to the key deposit rate (now 7.0%) and lending rate (now 8.0%). The cut follows a similarly sized reduction engineered in May, which together almost offset a […] More

Rate Cut at Bank Indonesia

August 22, 2019

There’s been an unexpected second consecutive cut of Bank Indonesia’s 7-day reverse repo rate, which now becomes 5.50%. Overnight deposit and lending rates were also sliced 25 basis points to 4.75% and 6.25%. Indonesia’s central bank interest rates had been lifted by 175 basis points last year, with the final move in November, in order […] More

Mexico Joins Group of Central Banks to Cut Central Bank Interest Rate

August 16, 2019

President Trump’s hostile handling of America’s southern neighbor since mid-2015 had created a vicious cycle of  peso depreciation and accelerating domestic inflation in Canada, forcing Mexican monetary authorities to repeatedly jack up their overnight interbank interest rate target from 3.0% prior to the first move in mid-December 2015 to 8.25% after the last move in […] More