Central Bank Watch

Bank of Thailand

November 8, 2017

Following a two percentage point decline between November 2011 and April 2015, Thailand’s policy interest rate has been at 1.5%. The latest review ended with a unanimous decision to keep that level, which is defended in a statement as follows: “The Committee viewed that the current accommodative monetary policy stance remained conducive to the continuation […] More

National Bank of Romania

November 7, 2017

Romania’s monetary policy rate stays at 1.75%, but the overnight lending and deposit rate corridor was narrowed further with a 25-basis point cut of the former to 2.75% and a hike of the latter to 0.75% from 0.50%. A statement was released after the latest review that observes solid economic growth, a recent pickup of […] More

Central Bank of Sri Lanka

November 7, 2017

The Monetary Policy Committee kept its deposit rate unchanged at 7.25% and its lending facility rate at 8.75%. The late increases in these rate were a pair of 50-basis point moves in February and July of 2016, and the levels are now the highest in a bit over four years. The post-meeting statement revises projected […] More

Reserve Bank of Australia

November 7, 2017

Australia’s Official Cash Rate has been at a record low 1.5% since August 2016 when such was cut by 25 basis points. Even though the economy has not had a recession for over 20 years, price and wage inflation are currently low. The on-year rise in consumer prices, both total and core, continues to be […] More

Bank of England Lifts Interest Rate as Expected

November 2, 2017

The Bank Rate was doubled to 0.50% because of a “steady erosion of slack” that “has reduced the degree to which it is appropriate for the MPC to accommodate an extended period of inflation above the target.” At 0.50%, the rate is back to the level prevailing from March 2009 until being halved in August […] More

Czech National Bank Raises Interest Rates

November 2, 2017

The Czech National Bank’s first interest rate change was enacted in early August when the 2-week repo rate and Lombard rate were increased 20 basis points and 25 bpsĀ  to 0.25% and 0.50%, respectively. A second round of rate hikes was enacted today. The 2-week repo rate is being doubled to 0.5%, and the Lombard […] More

FOMC Statement Conveys Little New Information

November 1, 2017

The FOMC statement was released at 18:00 GMT. Fifteen minutes later, key market prices — the dollar, 10-year Treasury yield, gold, oil and the DOW — were barely changed. The message was one of continuity. The November 1, 2017 FOMC statementĀ reads almost identically to the one from the prior meeting on September 20. The current […] More

FOMC Preview

November 1, 2017

A press conference is not scheduled for after the release of today’s FOMC statement, set for 14:00 EDT (18:00 GMT). By a unanimous vote , the federal funds target range of 1-1.25% was maintained at the last FOMC meeting on September 20. Nor is a change expected at this week’s meeting, but the statement will […] More

Bank of Japan Keeps Existing Policy Settings

October 31, 2017

The Bank of Japan Board released both a statement and a fresh quarterly Outlook for Economic Activity and Prices after its latest policy review, a two-day meeting that consumed a total four hours seven minutes of discussion. The Outlook is the more informative document as it provides extensive background regarding current economic conditions, the baseline […] More

Central Bank of the Republic of Colombia Enacts an Eighth 2017 Interest Rate Cut

October 30, 2017

Colombia’s benchmark interest rate was sliced to 5.0% from 5.25%. This was this year’s sixth 25-basis point reduction, and there have been also two cuts of 50 basis points. Prior to these, there was an initial 25-bp cut in mid-December of 2016. The rate had crested at 7.75% from July until December of last year. […] More