Central Bank Watch

No Turkish Interest Rate Hike This Month

July 24, 2018

Amid a vicious circle of currency depreciation and accelerating inflation, policymakers at the Central Bank of Turkey had hiked their benchmark interest rate by 75 basis points in April, 300 bps at an unscheduled conference on May 24, and 125 bps on June 7. This restraint had slowed but not halted market trends. Inflation rose […] More

South African Reserve Bank

July 19, 2018

While many central banks in emerging economies have been tilting policy in a more restrictive direction, the last two South African interest rate changes were cuts. Reduction of 25 basis points each last March and in July 2017 had followed a period from June 2014 to March 2016 when six increases had raised the SARB […] More

Indonesia’s 7-Day Reverse Repo Rate Left Unchanged at 5.25%

July 19, 2018

The Board of Governors at Bank Indonesia took a pause after having hike its interest rate three times in the space of six weeks. This had lifted the key 7-day reverse repo rate to 5.25% as of June 29th from 4.25% prior to an initial hike of 25 bps on May 17. There was also […] More

Bank of Canada Tightens Further

July 11, 2018

Canada’s overnight target central bank rate was lifted to 1.50% today. Bank of Canada officials had prepared markets to expect such a move today. It follows similar 25-basis point increases enacted in September 2017, January 2018 and, most recently, May 2018. A released statement of explanation points to more normalization in the future. Governing Council […] More

Swedish Riksbank

July 3, 2018

Sweden’s repo rate was kept at negative 0.50%, and a new statementĀ from the Executive Committee did not change previous forward guidance that a gradually rising trend is likely to begin late this year. One dissenting committee member wanted a 25-basis point hike now, and another favored saying such would occur in September or October. Projected […] More

Reserve Bank of Australia

July 3, 2018

As was expected, Australia’s Official Cash Rate (OCR) was left at the record low of 1.50% that it has been at since a 25-basis point cut in August 2016. A released statement from Governor Lowe exhibits no near-term possible consideration of raising such. Several risk factors and other justifications are mentioned to keep the status […] More

Third Indonesian Central Bank Interest Rate Hike Since May 17th

June 29, 2018

Bank Indonesia’s Board of Governors today raised the 7-day reverse repo rate by a greater-than-expected 50 basis points to 5.25%. The move followed quarter percentage points hikes on May 17 andĀ  May 31 and was accompanied by 50-bp increases in Indonesia’s overnight deposit rate to 4.5% and lending rate to 6.0%. A statement released after […] More

No Plans to Lift New Zealand’s Official Cash Rate Anytime Soon

June 28, 2018

The best contribution we can make to maximising sustainable employment, and maintaining low and stable inflation, is to ensure the OCR is at an expansionary level for a considerable period. So concludes today’s Reserve Bank of New Zealand’s released statement following the decision to retain the OCR at a record low of 1.75%. The OCR […] More

Bank of Thailand: No Change

June 20, 2018

Thailand’s one-day repo rate was kept at 1.5% by a vote of 5-1. It’s been at that level since a 25-bp cut in April 2015. Unlike some Asian economies, Thailand runs a current account surplus. Inflation still lies below the 1-4% target midpoint. Officials took this occasion to raise projected GDP growth this year and […] More

Bank of Japan Leaves Policy Unchanged, Downgrades Inflation Outlook

June 15, 2018

Following four hours six minutes of discussion on Thursday and Friday, the Bank of Japan Board voted 8-1 to maintain its policy of quantitative and qualitative monetary easing with yield curve control. The key elements of this stance are A negative 0.1% short-term policy interest rate target. A target of around zero percent on the […] More