Central Bank Watch

FOMC Preview

January 31, 2018

Seven weeks have passed since the last FOMC meeting when the federal funds rate target range was hiked by 25 basis points for the fourth time since December 2016. The range then became 1.25 – 1.50% and is not expected to be lifted again at this, the first policy review of 2018 and the last […] More

Bank of Norway

January 25, 2018

The Bank of Norway kept its key policy rate steady at 0.50%, the level since a 25-basis point cut in March 2016 capped 175 basis points of easing since 2011. In a released statement, members of the executive board of the central bank asserted that “the outlook and the balance of risks for the Norwegian […] More

Bank Negara Malaysia Implements First Interest Rate Hike Since May 2011

January 25, 2018

Since Malaysia’s last interest rate increase in 2011, there had been a pair of 25-basis point cuts in July 2014 and July 2016. But growth has been picking up and is expected to exhibit continuing upward momentum in 2018, with better support from exports and continuing strong domestic demand. Although inflation averaging 3.7% in 2017 […] More

ECB’s First Policy Meeting of 2018

January 25, 2018

The January meeting of the ECB Governing Council, the first of eight scheduled policy reviews in 2018, resulted in a consensus to leave all policy settings unchanged and the publication of a statement whose appraisal of the euro area economy and guidance to future policy can be best summarized by the fourth paragraph: Incoming information […] More

Bank of Japan Stays Its Course

January 23, 2018

The board of the Bank of Japan deliberated over two days for a combined four hours 35 minutes and arrived at the same decision as in December or October for that matter when the previous Outlook for Economic Activity and Prices was prepared. The vote at all three meetings was the same, 8-1, with Goushi […] More

South African Reserve Bank Repo Rate Kept at 6.75%

January 19, 2018

The main South African central bank interest rate was reduced 25 basis points six months ago to its current 6.75% level. This move represented a directional shift. Six prior increases from June 2014 until March 2016 had raised the rate from 5.0% to 7.0%. The result of this week’s first policy review of 2018 was […] More

Central Bank of the Republic of Turkey

January 18, 2018

Turkish central bank interest rates were not changed at the latest policy review. The one-week repo rate has been at 8.0% since a 50-basis point increase in November 2016. And the 9.25-7.25% overnight lending/borrowing rate corridor has existing since the lending rate was raised a year ago by 75 bps to 9.25%. Turkey is getting […] More

Bank Indonesia

January 18, 2018

Indonesia’s seven-day repo rate of 4.25% since last September was again left unchanged. A released statement¬†observes a more resilient domestic economy, including a sounder current account, low inflation supported by positive supply and demand factors and no major external pressures, ample capital inflows, a stable currency, and record reserves.¬† The key central bank interest rate […] More

Bank of Korea

January 18, 2018

South Korea’s central bank interest rate had been at 1.25% from June 2016 until late November of 2017 following five 25-basis point cuts in the space of 2-1/4 years. At the end of November, monetary authorities enacted their first increase since 2011, raising the rate by 25 bps to 1.5%. In doing so, the Bank […] More

Canada’s Third 25-Basis Point Central Bank Rate Hike in Six Months

January 17, 2018

The Bank of Canada’s Monetary Policy Council raised the overnight interest rate target to 1.25% from 1.0% today, following similar moves last September and July. A released statement revised upward projected GDP growth in 2018 and 2019 by 0.1 percentage point each to 2.2% and 1.6%. Growth has been led by domestic demand, whereas exports […] More