Central Bank Watch

Reserve Bank of Australia

October 3, 2017

The Official Cash Rate of the RBA was last reduced in August 2016, the second of two 25-basis point cuts that year. The OCR previously had been cut from a peak of 3.5% by 50 basis points in the final quarter of 2012, another 50 bps during 2013 and 50 bps in 2015, and the […] More

Reserve Bank of New Zealand

September 28, 2017

New Zealand’s official cash rate has been at a record low of 1.75% since a 25-basis point reduction in November 2016, and that’s only half as high as the 3.50% peak maintained from July 2014 until June 2015. Monetary policy will remain accommodative for a considerable period. Numerous uncertainties remain and policy may need to […] More

Czech National Bank

September 27, 2017

Monetary officials kept their 2-week repo rate at 0.25% at today’s policy review after having broken a streak dating back to November 2012 when such had been pinned at 0.05%. A ceiling on the koruna at 26.0 per euro, which was introduced in November 2013, was lifted back in April, but authorities reserve the right […] More

Bank of Thailand’s One-Day Repo Rate Left at 1.5% as Expected

September 27, 2017

The last central bank interest rate changes in Thailand were a duo of 25-basis point reductions in March and April of 2015 that culminated two percentage points of easing since November 2011. The policy stance is being kept accommodative in light of sub-target inflation and the baht’s appreciation against other Asian currencies. Some political pressure […] More

Central Bank of Sri Lanka

September 26, 2017

Once again, Sri Lanka’s Monetary Policy Committee elected not to change its key deposit and lending rates of 7.25% and 8.75%. They have been at those tight levels since a 50-basis point increase in July 2016. An earlier move of same magnitude had been implemented in February. Headline and core CPI inflation picked up somewhat […] More

Bank Indonesia

September 22, 2017

A follow-up cut in the seven-day reverse repo rate to 4.25% was announced today. An earlier cut a month ago of 25 basis points had been the first reduction since the sixth such move in 2016 was made in October. While easing today, Indonesian monetary officials claimed that their rate had now fallen to their […] More

South African Reserve Bank Repo Rate Held at 6.75%

September 21, 2017

A 25-basis point cut in the SARB policy interest rate to 6.75% in July was a response to a then-perceived improved inflation outlook and it was the first reduction in many years. The rate had been hiked six times from January 2014 to March 2016 and by 200 basis points in all to 7.0%. At […] More

Bangko Sentral ng Pilipinas

September 21, 2017

Three years have now elapsed since the last change in the Filipino overnight reverse repo rate, which was the second of two 25-basis point hikes in July and September 2014. The latest policy review kept the key central bank rate in The Philippines at 3.0%. Projected inflation remains 3.2% for 2017, 2018 and 2019. This […] More

Bank of Japan

September 21, 2017

Following four hours and 52 minutes of deliberation over two days, the Bank of Japan’s nine-person Board agreed to leave policy as is, with a -0.1% marginal short-term interest rate, a target of “around zero percent” in the 10-year JGB sovereign debt yield, and continuing quantitative stimulus for “as long as it is necessary for […] More

Central Bank of Norway

September 21, 2017

A released statement from Norges Bank’s Executive Board after the latest policy review defends keeping Norway’s key monetary policy rate at 0.50% in the period ahead, suggests that the initial increase may need to occur somewhat sooner than projected back in June, but also maintains that persistent uncertainties will require a careful and gradual eventual […] More