Central Bank Watch

FOMC Statement and Forecasts

September 26, 2018

The Federal Open Market Committee as expected raised its federal funds target by a quarter percentage point to a range of 2.00 – 2.25%. The released statement Repeated the same first paragraph used after the August 1 statement, which deals with economic conditions. Made no changes to the second paragraph that projects how its mandate […] More

FOMC Preview

September 26, 2018

Markets have already priced in the Fed’s eighth¬†increase of the federal funds target to a range of 2.0-2.25%. The increment of each hike has been 25 basis points, so today’s likely move will complete two full percentage points of tightening and be probably enough to warrant deletion in today’s FOMC statement of a characterization of […] More

Czech National Bank Takes Another Step Toward Interest Rate Normalization

September 26, 2018

In November 2012, Czech monetary policymakers enacted their final interest rate cut of the Great Recession cycle, lowering the 2-week repo rate to 0.05%, which they considered to be the lowest level such could safely go and therefore a virtual zero rate policy. A cap on koruna appreciation at 26 per euro was imposed a […] More

Swiss Quarterly Monetary Policy Review

September 20, 2018

A quarterly review of Swiss monetary policy kept the targeted interest rate at -0.75% within a range of negative 0.25% to negative 1.25% on 3-month Swiss Libor. A statement from the Swiss National Bank protests against a noticeable and unwelcome appreciation of the franc since the previous policy review in June. Subjective foreign exchange market […] More

An Initial Tightening of Norwegian Monetary Policy

September 20, 2018

Norway’s key¬†central bank rate was raised 25 basis points to 0.75%. That’s the first increase in many years but will not be the last. The rate had been lowered by 175 basis points between late 2011 and March 2016. A statement from the Executive Committee observes gradually diminishing excess capacity that should similarly lift inflation […] More

Bank of Russia Surprises Market with 25-Basis Point Key Interest Rate Hike to 7.5%

September 14, 2018

According to a statement released by the Board of Directors, inflation is climbing toward 4% faster than expected and inflation expectations have moved slightly higher, warranting today’s decision to implement the central bank’s first rate increase since mid-December of 2014. The peak of 17.0% only was retained for 7 weeks. A series of reductions ensued […] More

ECB Policy Meeting Produces No Surprises or Significant Developments

September 13, 2018

The European Central Bank Governing Council left its policy settings unchanged. The three key interest rates — a zero percent refinancing rate flanked by a -0.40% deposit rate and a 0.25% marginal lending facility rate — will not be increased through the summer of 2019. Asset purchases will total EUR 30 billion this month and […] More

Bank of England Leaves Policy Settings Unchanged

September 13, 2018

A second Bank Rate hike of 25 basis points to 0.75% had been undertaken six weeks ago. The first being of similar size was made last November. The asset purchase program was not changed either, and current limits were reached quite some time ago. Members of the Monetary Policy Committee decided that the current stance […] More

Central Reserve Bank of the Republic of Turkey

September 13, 2018

As telegraphed earlier this month, Turkish monetary authorities tightened monetary policy today in response to the continuing vicious cycle of lira depreciation, which had exceeded 50% year-to-date, and price inflation. They raised the one-week repo rate to 24.0% from 17.75%, exceeded street expectations. This was the fourth increase of 2018 after hikes of 125 basis […] More

Malaysia’s 3.25% Overnight Policy Rate Not Changed after Latest Review

September 5, 2018

A statement released by Malaysia’s Monetary Policy Committee projects that inflation, which was at 0.9% in July, will move higher but sees core CPI holding pretty stable. Officials foresee Malaysia’s economy continuing to expand steadily but flag a few near-term risks like “heightened trade tensions, prolonged weakness in the mining and agriculture sectors and some […] More