Uncategorized

Bank of England

May 7, 2020

The Bank of England kept its monetary policy settings as is. Two reductions of the Bank Rate were earlier made of 50 basis points on March 11 and 15 bps a week later. The rate is now pinned at 0.1%. A released statement foresees consumer spending falling about 30%, and business investment dropping even more […] More

Next Week’s Menu: May 2-8, 2020

May 1, 2020

Central Banks: Monetary policies will be reviewed in Australia, Russia, Chile, Peru, the U.K., Malaysia, the Czech Republic, Norway, and Brazil. The Bank of England publishes a quarterly Inflation Report, and Governor Bailey presides over a press conference. Purchasing Manager Surveys: PMIs get released on every day of next week. The largest number will cover […] More

Central Bank of Turkey Reduces 1-Week Repo rate to 8.75% from 9.75%

April 22, 2020

The Central Bank of Turkey’s one-week repo rate was cut twice as much as anticipated at today’s scheduled review of monetary policy. From 12% at the start of 2020, the rate has been lowered in each month and now becomes 8.75% after today’s full percentage point cut. A released statement observes that the global and […] More

Bank of Mexico Cuts Policy Rate for Third Time since February

April 22, 2020

The Bank of Mexico Governing Board held an unscheduled meeting, cutting its policy rate for the third time this year. Along with reductions of 25 basis points in February and 50 bps in March, today’s 50-basis point decline reduces the rate to 6.0%. Policymakers also put together $31 billion of additional support “to foster an […] More

Chile’s Secend Central Bank Rate Cut in March and Fifth Reduction Since Mid-2019

April 2, 2020

The Central Bank of Chile Board authorized a 50-basis point reduction of its policy interest rate on March 31 by unanimous vote just two weeks after an emergency meeting that cut such by 75 basis points on the 16th. In the second half of 2019, officials had also engineered cuts of 50 basis ponts in […] More

Bracing for Impact But Investors Take a Pause

March 19, 2020

The count of identified global coronavirus infections (230,041) and deaths (9,386) has risen by 26,429 and 1,097 in the past 26 hours. Investors are getting a glimpse of just how bad the economic impact could be. The IFO Institute’s monthly index of Germany’s business climate fell 8.3 points in March to a 127-month low of […] More

Bank of Korea’s Base Rate Reduced 50 Basis points to 0.75%

March 16, 2020

The Bank of Korea’s base rate was reduced to new record low of 0.75%. Like the Fed, Reserve Bank of New Zealand, and Monetary Authorities of Hong Kong and Macau, the BOK acted between scheduled policy meetings. Korea’s rate benchmark had been 1.25% since a pair of 25-basis point cuts in July and October of […] More

Next Week’s Menu: March 7-14, 2020

March 6, 2020

Central Banks: Monetary policies to be reviewed by the European Central Bank and in Peru, Ukraine, and Serbia. Lagarde holds a press conference after the ECB meeting, and DeBelle of the Reserve Bank of Australia speaks publicly. Special Events: United States and Canada move to daylight savings time on March 8th. Democratic Party primaries on […] More

Reserve Bank of Australia Official Cash Rate Cut to Record Low of 0.50%

March 3, 2020

The Reserve Bank of Australia’s official cash rate was sliced 25 basis points to a new record low of 0.50%, and commercial banks have been quick to pass on the easing with prime rate reductions. There have been ten OCR cuts of 25 basis points since May 2013. Today’s move follows three cuts last year […] More

Next Week’s Menu: February 29 – March 6, 2020

February 28, 2020

Central Banks: Monetary policies will be reviewed in Poland, Australia, Canada and Malaysia. The Fed Beige Book of U.S. regional conditions will be published, and Mester, Evans, Bullard and George are some of the Fed officials with public speaking engagements. Carney and Haldane of the Bank of England, Weidmann of the Bundesbank and ECB, and […] More

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