Central Bank Watch

Central Bank of the Republic of China (Taiwan)

September 21, 2017

Taiwan’s central bank discount rate has been left at 1.375%, its level since a 12.5-basis point cut in June 2016. A statement released after this week’s quarterly policy review observes sub-potential economic growth and low and well-anchored actual and expected inflation. As before, a role for currency market intervention on occasion is defended: “In principle, […] More

FOMC Leaves FF Target at 1-1.25%

September 20, 2017

The FOMC statement kept the existing interest rate target with no dissenting votes. Officials do not expect the hurricane storm damages to “alter the course of the national economy over the medium term. The statement includes a two-page addendum of modifications to a balance sheet normalization program that will begin to be implemented next month. […] More

FOMC Preview

September 20, 2017

Eight weeks have elapsed since the last FOMC meeting at which time committee members signaled that a program of balance sheet normalization would commence “relatively soon.” The assessment of employment growth was upgraded then, but the discussion of economic conditions otherwise was little changed from the previous June 14th meeting. Since the July 26 meeting, […] More

Magyar Nemzeti Bank

September 19, 2017

Hungary’s central bank Base Rate was retained at 0.90%, but the overnight deposit rate was lowered to negative 0.15% from -0.05%. A released statement declared, The inflation target is expected to be achieved in a sustainable manner one additional quarter later, i.e. by the middle of 2019, following a delay of half a year indicated […] More

Bank of Russia Eases

September 15, 2017

The fourth central bank interest rate cut of 2017 was made today, but the new policy rate level, 8.5%, still constitutes a “moderately tight stance” according to a released statement. Inflation now is close to the 4% target and well below the policy interest rate level. Furthermore, expected inflation has declined. However, officials do not […] More

A 25-Basis Point Interest Rate Cut in Peru

September 15, 2017

Authorities at the Central Reserve Bank of Peru implemented the third 25-basis point cut of 2017 following moves in May and July. A released statement justifies this third cut, even in the face of higher inflation in August than July, by projecting a decline in trend inflation over coming months and noting both lower expected […] More

Central Bank of Chile’s Policy Rate Kept at 2.5%

September 14, 2017

Chile’s policy interest rate was cut four times by 25 basis points each in the first five months of 2017 and has been at 2.5% since May after holding at 3.5% all of last year. The latest policy review found little had change since last month’s meeting. Inflation of 1.9% is below the 3% medium-term […] More

Central Bank of the Republic of Turkey

September 14, 2017

At this month’s review of Turkish monetary policy, no changes were made in the structure of interest rates. A tight stance is in place because of elevated total and core inflation. The one week repo rate has been at 8.0% since a 50-basis point increase last November. The marginal funding rate has been 9.25% since […] More

National Bank of Ukraine

September 14, 2017

From August 2015 through May of this year, a nine-step series of rate reductions slashed Ukraine’s policy interest rate from 30% to 12.5%. That level now lies below headline CPI inflation of 16.2%, which lately has crept higher. Core inflation also has climbed, but expected inflation has stayed pretty stable, helped by a firmer hryvnia. […] More

Swiss National Bank

September 14, 2017

After the September quarterly review of monetary policy, Swiss central bank authorities did not change their policy stance, slightly boosted projected inflation, cut the 2017 growth forecast to under 1% from 1.5%, and reiterated a commitment to a sub-zero interest rate and occasional foreign exchange intervention as needed to keep upward pressure on the franc […] More