Central Bank Watch

FOMC Statement and Projections

June 19, 2019

Today’s FOMC Statement downgraded the pace of economic activity to moderate but left the labor market assessment at strong. Personal consumption “appears to have picked up,” but business investment is still “soft.” As expected, forward guidance was modified, acknowledging increased uncertainties and replacing a stress on being patient with a promise to “act as appropriate […] More

FOMC Preview

June 19, 2019

After meeting last time seven weeks ago, the Federal Open Market Committee upgraded its assessment of economic growth, called the U.S. labor market strong, maintained the federal funds target range at 2.25-2.50%, and also kept the buzzword “patient” in describing its predisposition toward future adjustments of the policy stance. In rhetoric from Chairman Powell and […] More

Russian Monetary Stance Eased as Expected

June 14, 2019

The Central Bank of Russia today cut its benchmark interest rate for the first time since March 2018. The 25-basis point rate reduction to 7.5% had been foreshadowed in comments made after the previous monetary policy review, and today’s released statement points to more rate relief in coming months if inflation continues to settle back […] More

Swiss Quarterly Monetary Policy Review

June 14, 2019

The Swiss National Bank’s quarterly monetary policy review yesterday left the expansionary stance unchanged. Viewing their currency to be overly pricey, officials remain prepared to intervene against excessive appreciation on a discretionary basis as appropriate. The 3-month sight deposit target remains negative 0.75% as defined by a -1.75 to -0.25% 3-month LIBOR corridor. However, officials […] More

Central Bank of Turkey Keeps Existing Tight Stance

June 12, 2019

Turkish inflation has eased to a 9-month low of 18.7%, down from 19.1% in April and a peak of 25.2% last October. The economy is rotating away from overheated domestic demand and toward externally-driven growth, but these desired developments have not progressed far enough to persuade officials to take their foot off the monetary brakes […] More

50 Basis Point Central Bank Rate Cut in Chile

June 11, 2019

The Central Bank of Chile last Friday unexpectedly cut its benchmark interest rate by 50 basis points to 2.50%, the lowest level sinceĀ  a 25-basis point hike in January. The policy reversal returns the key interest rate to the low prevailing from May 2017 until October 2018. According to a officials, one should not infer […] More

Sri Lankan Interest Rates Cut

May 31, 2019

The Central Bank of Sri Lanka cut its interest rates by a half percentage point, citing the Easter terrorist attacks there, easier monetary policies elsewhere, downward rigidity in Sri Lankan market rates, slowing private sector credit expansion, a narrowed trade deficit, and subpar domestic growth. A recent uptick of inflation was dismissed as not being […] More

Canadian Monetary Stance Deemed Appropriate… No Changes Made

May 29, 2019

Just five weeks separated the last meeting of the Bank of Canada’s Governing Council on April 24 and this week’s, and officials decided to maintain the overnight rate target at 1.75% as was expected. A released statement observes that the economic landscape has evolved as anticipated in three notable areas: 1) domestic demand is picking […] More

Hungarian Monetary Policy Stance Left Unchange

May 28, 2019

Magyar Nemzeti Bank’s base rate has been at 0.90% since a 15 basis point reduction three years ago. The overnight deposit rate was raised 10 basis points two months ago to minus 0.05% in a move that reversed a cut of 10 bps in September 2017. Monetary officials at the central bank remain satisfied that […] More

Icelandic Central Bank Rate Cut as Growth is Slowing

May 22, 2019

The Central Bank of Iceland unexpectedly cut its seven-day term deposit rate to 4.0% from 4.5%. This reduction constitutes a double-reversal of trend. Following cuts totaling 125 basis points from May 2017 to October 2017, the central bank rate had been raised by 25 basis points just six months ago amid robust domestic growth. Today’s […] More