Central Bank Watch

FOMC Preview

January 27, 2021

The Federal Open Market Committee holds eight scheduled meetings per year and consists of the seven members of the Board of Governors (appointed by the president and confirmed by the senate), the New York Fed president, who serves as Vice Chairman of the FOMC, and four of the other eleven district presidents, who rotate onto […] More

European Central Bank Maintains Loose Monetary Stance

January 21, 2021

Having augmented the ECB’s Pandemic Emergency program (PEPP) of asset purchases by half a trillion euros and extending this “very accommodative” quantitative stimulus from mid-2021 to March of 2022 at its final policy review of 2020, the European Central Bank governing council left all quantitative and interest rate settings unchanged at its first meeting of […] More

Bank of Japan Policy Left Unchanged

January 21, 2021

The Bank of Japan‘s policy board chose to retain interest rates of -0.1% on overnight money and “around zero percent” on the 10-year JGB yield. The policy of Quantitative and Qualitative Easing with Yield Control will be maintained for as long as needed to achieve the elusive goal of sustainable 2.0% core CPI inflation, and […] More

Bank of Canada Policy Review

January 21, 2021

The Bank of Canada‘s overnight target rate was left at 0.25%. This effective lower boundary has been the rate level since a trio of 50-basis point cuts in March 2020. The rate will not be lifted before economic slack — estimated to be between 2.75% and 3.75% of GDP according to a released policy statement […] More

Romanian Central Bank Rate Cut

January 18, 2021

The National Bank of Romania cut its key interest rate by 25 basis points to 1.25%. This reduction augments the full percentage point of cuts last year (50 bps in March and 25 bps each in May and August) and takes the rate level to its lowest point in the 21st century. A released statement […] More

Central Bank of Turkey’s Repo Rate Lifted Another 200 Basis Points

December 24, 2020

2020 was a very active year for Turkish monetary policy. Five repo rate reductions in January-May totaled 375 basis points but were followed by sharp hikes of 200 basis points in both September and today, flanked around a huge 475-basis point increase in November. The rate benchmark is ending the year at 17% compared to […] More

FOMC Statement, Forecasts, and Powell Press Conference

December 16, 2020

Today’s FOMC statement elaborates on text in the sentence dealing with  monthly increased holdings of Treasury securities and agency mortgage-backed securities, spelling out the amounts of at least $80 billion in the former and at least $40 billion in the latter. Those figures in fact represent the current pace, so the added words do not […] More

FOMC Preview

December 16, 2020

In the six weeks since the Federal Open Market Committee met in early November, risk aversion has lessened as multiple approved Covid vaccines have gone from a developing stage to distribution. The dollar fell about 3% against the euro but held steady relative to the yen, another currency with safe haven appeal. The 10-year Treasury […] More

ECB Augments Existing Programs but Doesn’t Introduce New Ones

December 10, 2020

In a variety of ways, the central bank governing council expanded and in some cases extended the duration of non-interest rate monetary stimulus programs in order to preserve functional and accommodative financial conditions, promote economic recovery, and foster steady progress toward restoring the medium-term consumer price target which is a level “sufficiently close to, but […] More

Serbian Interest Rate Cut

December 10, 2020

The Executive Board of the National Bank of Serbia cut its interest rate by 25 basis points to 1.0% in a move that had not been anticipated by analysts. This brings the total reduction this year to 125 bps following cuts of 50 basis points last March and 25 bps cuts in April and June. […] More