Central Bank Watch

Czech National Bank

August 3, 2017

Although anticipated by market participants, the Czech National Bank raised interest rates today for the first time since February 2008. Monetary officials four months ago had stopped using automatic intervention to prevent the koruna from appreciating beyond 26.0 per euro. Intervention still occurs but not in a prescribed automatic and unlimited way. The Bank’s two […] More

National Bank of Ukraine

August 3, 2017

From 30% two years ago, Ukraine’s key interest rate was reduced in a series of cuts by more than half to 14% in October 2016. It stayed at that level for a half year but was reduced 100 basis points this past April and a further 50 bps in May. The latest policy review, like […] More

Central Bank of Sri Lanka

August 3, 2017

From October 2012 to April 2015, Sri Lanka’s central bank key lending and deposit rates had been cut in four moves by two percentage points. Half of that reduction was subsequently reversed in two 50-basis point hikes administered in February and July of last year. Since July 2017, the standing deposit facility rate has stayed […] More

Reserve Bank India Eases Stance

August 2, 2017

By a vote of 4-1-1, Indian monetary policymakers decided to reduce their repo and reverse repo rates by 25 basis points to 6.0% and 5.75%, thus becoming the first Asia central bank to enact a rate cut in 2017. The previous RBI interest rate cut had been done ten months ago. Officials released a statement […] More

No Interest Rate Change from the Reserve Bank of Australia but New Language about the Australian Dollar

August 1, 2017

The latest monthly RBA meeting kept the Official Cash Rate at 1.5%, a record low since a 25-basis point cut a year earlier. A released statement kept the bank’s macroeconomic forecasts largely unchanged, but new language was introduced in the comment on the Australian dollar: The Australian dollar has appreciated recently, partly reflecting a lower […] More

Bank of Russia’s Interest Rate Left at 9.0%

July 28, 2017

The interest rate previously had been cut this year by 25 basis points in March, 50 bps in April and 25 bps in June, but a released statement observes “The decline of inflation expectations has come to a halt, consistent with predictions, in response to price movements in a number of products and services. In order to maintain inflation close to the 4% target, the Bank of Russia […] More

Colombia’s Central Bank Interest Rate Sliced 25 Basis Points to to 5.5% by 6-1 Vote

July 28, 2017

The Bank of the Republic of Colombia implemented its sixth interest rate reduction of 2017 following cuts of 25 basis point in February, March and May and of 50 bps in April and June. A released statement speaks of weak domestic demand and notes that both total and core inflation slowed in June, although remaining […] More

Central Bank of the Republic of Turkey Fails to Loosen Policy Stance

July 27, 2017

The central bank lending rate has been at 9.25% since hikes of 25 basis points in November 2016 and 75 bps in January of this year. A statement released after the latest policy review observes improved domestic demand and inflation but cautions that “although recent improvements in cost factors and expected partial correction in food […] More

Another Brazilian Central Bank Interest Rate Cut

July 26, 2017

The Selic rate has been reduced to 9.25% from 10.25%. The previous cut was made at the end of May and also 100 basis points in size. The current easing cycle began three years ago in July 2014 at 17.5%. A statement released by Copom, the Central Bank of Brazil’s policymaking committee, observes continuing disinflation […] More

Minor Modifications Only in FOMC Statement

July 26, 2017

Today’s FOMC statement left the federal funds rate target range at 1.0-1.25% as widely expected. The document added virtually nothing meaningfully new to the market’s understanding of current policy and the intentions of its officials, yet it produced a further significant drop in the dollar, which hit a low of 1.1741 per euro during the […] More