Central Bank Watch

Central Bank of Chile

October 19, 2018

Chilean monetary officials agreed unanimously to the first interest rate hike since December 2015, raising its key rate by 25 basis points to 2.75% from 2.50%, which had prevailed since May 2017 and had constituted the lowest level since September 2010. In taking this first tightening, which markets had anticipated, officials noted that Chile’s output […] More

Hungarian National Bank

October 16, 2018

As expected Hungary’s central bank rates were left unchanged at the monthly policy review. The last Base Rate Change was a reduction of 15 basis points to 0.90% in May 2016, and the last change in the overnight deposit rate was a 10-basis point cut to -0.15% made in September 2017. A released statement projects […] More

Bank of Israel Leaves Central Bank Rate at 0.10% and Signals Reluctance to Start Normalization Anytime Soon

October 8, 2018

Forty four months have elapsed since the last Israeli central bank change, a cut of 15 basis points to 0.10% in February 2015. Inflation is still too low to begin raising the rate. The inflation environment has not changed markedly since the previous interest rate decision, despite slightly lower than expected recent CPI readings: The […] More

Bank of Mexico Leaves Overnight Interbank Rate at 7.75%

October 4, 2018

Mexican CPI inflation of 4.9% as of August exceeded the 3% target and even the target range ceiling of 4%. Expected inflation is also running above the comfort zone in Mexico, but growth is only around 2%. The central bank interest rate was increased by 250 basis points during 2016, 150 basis points during 2017, […] More

Bank Indonesia Tightens Again

September 27, 2018

Amid continuing domestic demand-led growth, a greater-than-desired current account deficit, and and external environment that puts many emerging market currencies and the financial markets at some risks, Bank Indonesia’s Board of Governors sanctioned a fifth hike of the seven-day reverse repo rate from its past six meetings. The rate, which now becomes 5.75%, has now […] More

50-Basis Point Increase in Filipino Overnight Reverse Repo Central Bank Rate

September 27, 2018

The Monetary Board at Bangko Sentral ng Pilipinas raised its key interest rate at a fourth straight scheduled monthly meeting and did so in the face of mounting inflationary risk that has persuaded officials to envisage a higher inflationary path going immediately forward. According to a released statement, today’s 50-basis point rate hike and 100 […] More

FOMC Statement and Forecasts

September 26, 2018

The Federal Open Market Committee as expected raised its federal funds target by a quarter percentage point to a range of 2.00 – 2.25%. The released statement Repeated the same first paragraph used after the August 1 statement, which deals with economic conditions. Made no changes to the second paragraph that projects how its mandate […] More

FOMC Preview

September 26, 2018

Markets have already priced in the Fed’s eighth increase of the federal funds target to a range of 2.0-2.25%. The increment of each hike has been 25 basis points, so today’s likely move will complete two full percentage points of tightening and be probably enough to warrant deletion in today’s FOMC statement of a characterization of […] More

Czech National Bank Takes Another Step Toward Interest Rate Normalization

September 26, 2018

In November 2012, Czech monetary policymakers enacted their final interest rate cut of the Great Recession cycle, lowering the 2-week repo rate to 0.05%, which they considered to be the lowest level such could safely go and therefore a virtual zero rate policy. A cap on koruna appreciation at 26 per euro was imposed a […] More

Swiss Quarterly Monetary Policy Review

September 20, 2018

A quarterly review of Swiss monetary policy kept the targeted interest rate at -0.75% within a range of negative 0.25% to negative 1.25% on 3-month Swiss Libor. A statement from the Swiss National Bank protests against a noticeable and unwelcome appreciation of the franc since the previous policy review in June. Subjective foreign exchange market […] More