Central Bank Watch

Bank of Canada Kept at 0..25% Effective Floor and Substantial Quantitative Stimulus to Continue

July 15, 2020

Canada’s overnight central bank rate target was sliced three times by 50 basis points each time during March. At 0.25%, such is now at a level that officials believe to be at an effective lower boundary. In addition, monetary officials have implemented a range of liquidity facilities and asset purchase programs to ease market dysfunctionality […] More

Bank of Japan Policy Settings Unchanged… New Forecasts Released

July 15, 2020

The metrics of the Bank of Japan’s quantitative and qualitative easing with yield curve control were not changed at the latest monetary policy review.  Since September 2016, the short-term policy rate target has been -0.1%, and the target for the 10-year JGB yield has been around zero percent. The BOJ continues to inject liquidity on […] More

Sri Lanka’s Fifth Central Bank Rate Cut of 2020

July 9, 2020

The Central Bank of Sri Lanka became the latest monetary authority to slash interest rates. The Standing Deposit Facility and Standing Lending Facility rates were each reduced by 100 basis points to 4.5% and 5.5%, respectively. Earlier this year, cuts of 25 bps in March and April were sandwiched between 50-basis point cuts in January […] More

Swedish Riksbank

July 1, 2020

The Swedish Riksbank repo rate was left unchanged at zero percent. It’s been at that level since a 25-basis point hike last December. In mid-March, however, officials at an unscheduled emergency meeting agree to purchase SEK 300 billion of assets during 2020 and to increase loans to banks. Today, those programs were loosened.  The asset […] More

Central Bank of Colombia

July 1, 2020

The Central Bank of Colombia’s policy interest rate was reduced 25 basis points to a record low of 2.50%. The decision drew one dissent. CPI inflation slowed over a half percentage point in May, and both it and expected inflation are now below the 3% objective. Colombia’s labor market has deteriorated recently, and recovery in […] More

Another Mexican Central Bank Interest Rate Cut

June 25, 2020

The Governing Board unanimously cut the overnight interbank interest rate by 50 basis points to 5.0%. This was the fourth straight monthly cut of 50 basis points, and there was also a 25 basis point cut made in February and three 25-bp reductions during the last four and a half months of 2019. The rate […] More

Fourth Filipino Central Bank Rate Cut of 2020

June 25, 2020

At the Central Bank of The Philippines, the key overnight reverse repo rate was reduced by 50 basis points to 2.25%. Such had been also cut by a half percentage point in both March and April and by 25 basis points back in February. Officials released a statement, identifying a deterioration in global GDP conditions […] More

Hungary’s First Base Rate Cut in Four Years

June 23, 2020

The base rate of the Central Bank of Hungary, which had been at 0.90% since a 15-basis point reduction exactly four years ago, was reduced by another 15 basis points to 0.75%. CPI inflation this year is expected to hover between 3.0% and 3.5% and to average even less in 2021. The overnight deposit rate […] More

Bank of Russia Interest Rate Reduced Full Percentage Point

June 19, 2020

The Central Bank of Russia lowered its one-week repo rate by a full percentage point to a record low of 4.5%, bringing the net drop this year to 175 basis points. The rate earlier was cut 25 bps in February and by 50 bps in April. More monetary relief is moreover still in play according […] More

Indonesian Interest Rate Cut

June 18, 2020

Indonesia’s policy interest rate has been reduced 25 basis points to 4.25%. This was the third such drop in 2020 following 25-basis point cuts in February and May. Officials at Bank Indonesia likely was sliced 25 basis points from their overnight deposit and lending rates to create a new corridor that runs from 3.5% to […] More

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