Central Bank Watch

Bank of England Escalates Hint that Gradual Tightening is Coming Maybe Soon

September 14, 2017

 A majority of MPC members judge that, if the economy continues to follow a path consistent with the prospect of a continued erosion of slack and a gradual rise in underlying inflationary pressure then, with the further lessening in the trade-off that this would imply, some withdrawal of monetary stimulus is likely to be appropriate […] More

Thoughts on Last Weeks ECB Meeting

September 12, 2017

At the European Central Bank Governing Council meeting last Thursday, officials did not modify its interest rate structure: a refinancing rate of zero percent flanked by a negative 0.40% deposit rate and a 0.25% marginal lending facility rate. Nor did the committee change the parameters of its asset purchase program that runs to December at […] More

Central Bank of the Republic of Colombia

August 31, 2017

Colombia’s central bank interest rate was lowered by 25 basis points to 5.25%, bringing the cumulative decline over the past six monthly meetings to 175 basis points. A majority of four policymakers wanted a 25-basis point cut, while two preferred a reduction of 50 basis points, and one voted not to cut the rate at […] More

Bank of Korea

August 31, 2017

The Bank of Korea Base Rate was left unchanged at 1.25%, its level since a 25-basis point cut in June 2016, and that had been the first change in a year’s time. South Korean monetary policy is accommodative, and the next rate change most likely will be an increase than another cut. Inflation has climbed […] More

Bank of Israel Leaves Accommodative Policy Stance as Is

August 29, 2017

Two and a half years have now transpired since the Bank of Israel’s policy interest rate was last changed in February 2015 with the implementation of a cut of 15 basis points to 0.10%. That move culminated a 13-step easing of 75 basis points per year during the prior four calendar years. A statement released […] More

Bank of Iceland’s August Policy Review

August 23, 2017

The 7-day deposit rate, which had been cut by 50 basis point sin August 2016 and by 25 bps each in May and June of this year, was left at 4.5% after the latest meeting of the monetary policy committee. A released statement revealed that projected GDP growth in 2017 was revised marginally lower but […] More

An Unexpected Interest Rate Cut by Bank Indonesia

August 22, 2017

Indonesia became the latest central bank from an emerging market economy to cut its interest rates. The previous six changes, each like today’s move a cut of 25 basis points, were implemented from January to October in 2016. Then easing was stopped because officials worried that Fed rate normalization would expose the rupiah and Indonesian […] More

Central Bank of Hungary

August 22, 2017

Hungary’s key central bank interest rate was slashed from 7.0% some five years ago to 0.90% after a 15-basis point reduction on May 24, 2016. That was its last change. However, other rates like the overnight lending and deposit rates were reduced further subsequently — and are now at 0.90% and -0.05%. Other unconventional monetary […] More

Central Bank of Chile

August 17, 2017

The latest review of Chilean monetary policy ended with a decision to leave the key interest rate at 2.5%, the level since the last of four 25-basis point cuts implemented between January and May of this year. The policy bias remains neutral. Inflation of 1.7% currently lies below the target of 3%, but officials still […] More

FOMC Minutes

August 16, 2017

Minutes from the July 25-26th Federal Open Market Committee policy meeting revealed compartmentalized thinking on the two policy normalization issues. Committee members were split over whether a recent dip in inflation should in and of itself delay the next interest rate increase but unified on the need to publicize a road map soon of guidelines […] More