Central Bank Watch

Bank Negara Malaysia

May 10, 2018

Malaysia’s overnight policy rate was kept steady by the Monetary Policy Committee at 3.25%, its level since a 25-basis point rise in January, which had been the first change since a cut in July 2016 and the first increase since July 2014. According to a released statement, continuing expansion is projected in both exports and […] More

National Bank of Serbia

May 10, 2018

Serbian monetary officials already had cut their policy interest rate by 50 basis points this year via two 25-bp moves in March and April. The half-percentage point reduction this year matched the total annual declines engineered in both 2016 and 2017 and followed a combined 500 bps in 2014-15 and 275 bps in the final […] More

Bank of England

May 10, 2018

The latest Monetary Policy Committee meeting ended without any change in the 0.5% Base Rate or in the Bank of England’s GBP 10 billion of corporate bond purchases and GBP 435 billion ceiling on gilt purchases. The released statement explaining this decision was accompanied by a new quarterly Inflation Report. After the MPC last reviewed […] More

Reserve Bank of New Zealand

May 10, 2018

A more dovish than expected statement released after New Zealand’s official cash rate (OCR) was kept at 1.75% predicts that “a considerable period of time” will pass before the OCR is raised and even asserts that, “The direction of our next move is equally balanced, up or down. Only time and events will tell.” Seven […] More

National Bank of Romania

May 7, 2018

Romania’s central bank Board hike the monetary policy rate by 25 basis points today to 2.50%. This action followed an initial 25-bp increase done in January. These two moves reverse half the total one percentage point rate reduction that occurred previously during the first five months of 2015. In a released statement, the move is […] More

Central Bank of Chile

May 3, 2018

Chilean monetary officials unanimously agreed to keep their monetary policy rate at 2.5%, the level since four 25-basis point cuts in the first five months of last year. A statement was released affirming the Board intention to “keep the monetary stimulus at its current level until macroeconomic conditions tend to consolidate the convergence of inflation […] More

Bank of Norway

May 3, 2018

Norway’s key central bank policy rate was left at 0.5%, the level since a 25-basis point cut in March 2016 culminated 175 basis points of rate reduction since 2011. A released statement after the latest monetary review indicates that the likeliest timing of an initial rate hike appears will be after this summer. While underlying […] More

Czech National Bank

May 3, 2018

The Czech two-week central bank repo rate was left unchanged at 0.75% by a six to one vote and will continue to be flanked by a 0.05% deposit rate and a 1.50% Lombard rate. The lone dissenting vote favored a 25-basis point hike in the 2-week repo to 1.0%. Policy normalization began exactly one year […] More

FOMC Statement

May 2, 2018

Today’s just-released FOMC statement sets the stage for a rate hike in June. The view regarding economic activity and labor market conditions is as upbeat as in March. The comment on investment is even more encouraging. On inflation, officials as much as say that the target is close at hand. A decision not to change […] More

FOMC Preview

May 2, 2018

Since the 25-basis point federal funds target interest rate hike to a range of 1.50-1.75% on March 21, the 10-year Treasury yield has risen another 7 basis points on balance, the price of WTI oil has climbed 3.5%, and the dollar has appreciated by 3.4% against the yen and 2.5% relative to the euro. A […] More