Central Bank Watch
Central Bank of Chile Interest Not Changed
December 11, 2014
Eight straight monetary policy interest rate cuts were implemented between January 2012 and September 2014, including five this year, but central bank officials have recently paid a little more attention to inflation, which is above the 2-4% target and likely to stay so “still for some months.” According to statement today, “the evolution of prices […] More
Central Bank Watch
National Bank of Serbia Keeps 8% Policy Interest Rate
December 11, 2014
The central bank’s executive board decided not to cut the benchmark rate further, have done so by 50 basis points each in May, June and, most recently, November of this year. A released statement proclaims that “the monetary policy measures undertaken so far, gradual waning of disinflationary effects of low food production costs, and the […] More
Central Bank Watch
Swiss National Bank Quarterly Monetary Policy Review Leaves Settings Unchanged
December 11, 2014
The cap on Swiss franc appreciation at 1.2000 per euro, first imposed in September 2011, remains firmly intact, and so will the virtual zero interest rate policy. The 3-month Swiss Libor target range remains at 0-0.25%, and the point estimate within those boundaries is zero. Prolonging the duration of this emergency accommodative stance, SNB officials […] More
Central Bank Watch
Surprise Interest Rate Cut in Norway
December 11, 2014
Norway’s key central bank interest rate was cut unexpectedly today by 25 basis points to 1.25%. The previous change was also a 25-bp cut but taken 33 months ago, and the first easing, a rate cut of 50 basis points, occurred way back in December 2011. A statement released by Norges Bank today speaks of […] More
Central Bank Watch
The Fifth Russian Interest Rate Hike since March
December 11, 2014
Never mind that Russia is in a severe recession caused by its own geopolitical mischief and plunging oil prices on world markets. A full-blown currency crisis is fanning higher inflation, leaving officials at the Bank of Russia no choice but to raise interest rates sharply in an attempt to stem heavy capital outflows. The key […] More
Central Bank Watch
Monetary Policy in The Philippines
December 11, 2014
The Filipino overnight central bank borrowing rate had been hiked by 25 basis points each this past July and September. These were the first tightenings since May 2011, and there have not been any subsequent increases, including at today’s final scheduled policy meeting of 2014. A brief statement today from Bangko Sentral ng Pilipinas says […] More
Central Bank Watch
No Further Monetary Tightening This Month in Indonesia
December 11, 2014
The BI interest rate had been raised by 25 basis points at the prior month’s meeting of Bank Indonesia’s Board of Governors. That tightening was the first in a year and left the BI level, 7.75%, at its highest since March 2009. Officials believe that November’s action provides sufficient restraint for now and explains its […] More
Central Bank Watch
Korean Repo Rate Held at 2.0% but Maybe Not for Much Longer
December 11, 2014
The statement released by South Korean monetary officials after keeping their seven-day repo rate at 2.0% accentuates factors that might lead them to undertake further monetary relief. The central bank rate was reduced four times between November 2012 and October of this year. The first of these cuts was the first easing since February 2010. […] More
Central Bank Watch
Reserve Bank of New Zealand Tightening Kept on Pause
December 11, 2014
Rate normalization began earlier this year with 25-basis point hikes of the New Zealand official cash rate in March, April, June and July. Like their two earlier meetings, officials did not tighten further at the final scheduled policy review of 2014, preferring to keep the OCR at 3.5%. A released statement observes benign inflation currently […] More
New Overnight Developments Abroad - Daily Update
Many Central Banks Are Heard From
December 11, 2014
Even before the highly awaited U.S. retail sales report, several central bank policy announcements held the market’s attention. The Reserve Bank of New Zealand kept its official cash rate at 3.5%. Although inflation is currently modest, it is expected to approach 2% later in the forecast period, and that will likely necessitate a further increase […] More
