Central Bank Watch

No Change Made in Sri Lankan Monetary Policy Stance

February 16, 2018

The Central Bank of Sri Lanka’s standing deposit facility rate and standing lending facility rate have been at 7.25% and 8.75% since an increase of 50 basis points in July 2016. That was the second such reduction of 2016 and along with an earlier move in February reversed two percentage points of easing engineered between […] More

Bank Indonesia Keeps Policy Stance on Hold

February 15, 2018

The 7-day reverse repo rate, the deposit rate and the overnight lending facility rate were retained at 4.25%, 3.5%, and 5.0%, respectively, at the February monthly meeting of Bank Indonesia’s Board of Governors. A statement was released that reiterates the main points of January’s statement. Inflation lies with and is expected to stay in the […] More

Swedish Riksbank Keeps Repo Rate at Negative 0.50%

February 14, 2018

Four months after lowering Sweden’s repo rate to an unprecedented level of zero percent in October 2014, Executive Board members embraced the negative interest rate tool, cutting the repo four times over the twelve months to February 2016 to its current level of -0.5% where such has been for the past two years. The start […] More

Bank of Thailand

February 14, 2018

Thailand’s central bank policy interest rate has been at 1.5% since 25-basis point cuts in March and April of 2015. Monetary Policy Committee members decided to keep it at this pro-growth, accommodative level at this week’s review, releasing a statement that defends the need for such in order to promote the upward return of inflation […] More

A 25-Basis Point Cut in the Bank of Russia’s Main Interest Rate to 7.5%

February 12, 2018

During calendar 2017, a combination of three 50-basis point central bank interest rate reductions including one in December and three other cuts of 25 basis points lowered the rate to 7.75% from 10.0%. For this year’s first easing, officials chose a 25-basis point increment but released a statement that observed a significant current shortfall of […] More

Reserve Bank of Peru

February 9, 2018

In each of the last three years, Peruvian CPI inflation has hovered in the lower half of the 1-3% target, and such was at 1.25% last month with a 2.0% underlying core rate. Economic growth is expanding at less than its potential trend. Expected inflation is still creeping lower. Monetary policy officials have accordingly been […] More

Bank of Mexico Tightens

February 8, 2018

Mexico’s overnight interbank facility rate was lifted again, this time by 25 basis points to 7.5%. Today’s action is the twelfth increase dating back to December 2015, prior to which the policy rate had been at 3.0%. This progressive restraint is meant to anchor medium-term and long-term inflation expectations in the face of unforeseen shocks […] More

Bank of England

February 8, 2018

As had been expected, the Monetary Policy Committee by unanimous consent did not change policy settings. The Bank Rate has been 0.50% since being doubled three months ago in a move that reversed the 25-basis point cut in August 2016 shortly after Brexit was approved narrowly by citizen referendum. Ceilings of GBP 435 billion on […] More

Bangko Sentral ng Pilipinas

February 8, 2018

The Filipino overnight reserve repo rate was left at 3.0%. It’s been at that level since early June 2016 when the central bank monetary board abandoned a point target of 4% and adopted a 3-4% target corridor. The ceiling is imposed by the overnight lending rate. A statement of explanation for today’s action revises projected […] More

National Bank of Serbia

February 8, 2018

Serbia’s policy interest rate was left at 3.5%. The last and only reduction of 2017 was implemented in October and a half percentage point in size. There had been previous cuts of  275 basis points in the final eight months of 2013, 150 bps in 2014, 350 bps in 2015 and 50 basis points in 2016. […] More