Central Bank Watch

100-Basis Point Cut in South Africa’s Central Bank Policy Rate

April 14, 2020

Officials at the South African Reserve Bank unanimously authorized the second full percentage point reduction of their key interest rate in the past four weeks. The rate, which had crested at 6.75% after 175 basis points of tightening in 2018, was lowered to 4.25%. The latest 100-basis point reduction was twice as much as analysts […] More

Rate Cut in Serbia

April 9, 2020

The National Bank of Serbia’s policy rate was sliced by 25 basis points today to 1.5%. Previous cuts were engineered of 50 basis points in March and 25 bps each in July, August and¬† November of 2019. “Indicators from the international environment signal that the negative effects of the virus on global economic growth are […] More

Poland’s Second 50-Basis Point Central Bank Cut Since March 17th

April 8, 2020

Poland’s central bank reference rate has been halved to 0.50% and henceforth will be surrounded by a zero percent deposit rate and a 1.0% Lombard rate. There had been an initial monetary¬† policy response to Covid-19 on March 17, including a 50-basis point interest rate cut, liquidity injections via repo operations, and a program of […] More

Israeli Central Bank Rate Cut 15 Basis Points to 0.15%

April 6, 2020

The Bank of Israel’s monetary policy rate has been lowered back to the low of 0.10% that prevailed from January 2015 until a 15-basis point increase in late November 2018. Previously, the rate had crested at 3.25% prior to 2011 but was lowered by 75 basis points per year over four consecutive calendar years through […] More

25-Basis Point Cut in Sri Lankan Central Bank Policy Rates

April 3, 2020

The Monetary Board at the Central Bank of Sri Lanka held an emergency session today in which members agreed to cut the Standing Deposit Facility rate to 6.0% from 6.25% and the Standing Lending Facility rate also by 25 basis points to 7.0%. Just 18 days earlier also at an unscheduled meeting, these rates were […] More

Chile’s Secend Central Bank Rate Cut in March and Fifth Reduction Since Mid-2019

April 2, 2020

The Central Bank of Chile Board authorized a 50-basis point reduction of its policy interest rate on March 31 by unanimous vote just two weeks after an emergency meeting that cut such by 75 basis points on the 16th. In the second half of 2019, officials had also engineered cuts of 50 basis ponts in […] More

Monetary Policy Eased in Singapore

March 30, 2020

The semi-annual monetary policy review by officials at the Monetary Authority of Singapore cut the slope of the Singapore dollar’s allowed trading range to zero percent. This matches the slope allowed from April 2016 through April 2018. The center of the trading band will be is present level, and the width of the band remains […] More

Third 50-Basis Point Canadian Central Bank Rate Cut Since March 4

March 27, 2020

At a regularly scheduled Governing Council meeting on March 4, the Bank of Canada’s overnight policy rate was cut to 1.25% from 1.75%, a level that had prevailed since a 25-basis point hike in October 2018. A statement released after that meeting observed that Canadian GDP was close to potential and inflation near target but […] More

Reserve Bank of India’s Repo Rate Cut by 75 Basis Points

March 27, 2020

The Reserve Bank of India is the latest central bank to call an emergency meeting and approve a slew of stimulus measures. These include a 75-basis point cut of the repo rate to 4.40%, which brings the cummulative drop to 135 basis points since last August and to 210 basis points over the past 13 […] More

Czech National Bank Reduces Two-Week Repo Rate to 1.0%

March 26, 2020

Ten days after an inter-meeting 50-basis point rate reduction on March 16, Czech National Bank officials at today’s scheduled meeting authorized a further 75-basis point rate cut, declaring in a released statement that the Czech economy likely faces a strong domestic recession for most of the rest of 2020 and that such will likely exert […] More

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