Central Bank Watch
Bank of Russia
March 20, 2020
The Bank of Russia had previously lowered its key interest rate from 7.75% prior to June 2019 to 6.0% after a 25-basis point cut in February. However, this easing cycle had to be put on indefinite pause this month because a tumbling ruble is likely to raise inflation above the 4% target in coming months. […] More
Central Bank Watch
Bank of Norway
March 20, 2020
the Bank of Norway, which had cut its policy rate to 1.0% from 1.5% on March 12, cut such again on the 19th after an unscheduled meeting to 0.25%, asserting simply that “the situation in the Norwegian economy has continued to worsen” in the past week. The reduction a week ago had been the first […] More
Central Bank Watch
ECB Doing Whatever It Takes
March 20, 2020
The European Central Bank created a new Pandemic Emergency Purchase Program, which to start totals EUR 750 billion on top of the EUR 120 billion of incremental quantitative stimulus announced after the scheduled Governing Council meeting earlier this month. Together these actions represent 7.3% of GDP in the common currency area. More will be forthcoming […] More
New Overnight Developments Abroad - Daily Update
Dollar Down After Fed Expands Currency Swap Network.. Equities Up in Asia and Europe
March 20, 2020
The dollar fell overnight by 2.9% against the Australian dollar, 2.5% relative to the kiwi, 2.2% versus sterling, 2.0% vis-a-vis the loonie, 0.8% against the peso, 0.6% versus the yen and 0.4% relative to the euro and Swiss franc. The swap line arrangement that enables central banks to exchange on a temporary basis their own […] More
Central Bank Watch
South African Repo Rate Slashed 100 Basis Points
March 19, 2020
The latest and largest rate cut today has been a 100-basis point reduction in the South Africa Reserve Bank’s repo rate to 5.25%. This follows a 25-basis point cut in January and an initial 25-bp cut in July 2019. The repo rate had been as high as 7% from March 2016 through July 2017. Ahead […] More
Central Bank Watch
Filipino Monetary Easing
March 19, 2020
At Bangko Sentral ng Pilipinas, the policy interest rate of the Philippines was cut to 3.25% today from 3.75%. That increment of reduction doubles the previous easing done in February and brings the total cut since May 2019 to 125 basis points. Inflation is firmly anchored within the central bank target of 2-4% according to […] More
Central Bank Watch
Another Indonesian Interest Rate Cut
March 19, 2020
Officials at Bank Indonesia reduced the 7-day reverse repo rate by 25 basis points to 4.5%. There was also a 25-basis point cut in February and a full percentage point of reduction in four moves during the second half of last year. Taken together all but 25 basis points of the 175-bp of tightening in […] More
Central Bank Watch
Taiwanese Interest Rate Cut Exceed Expectations
March 19, 2020
The Central Bank of the Republic of China (Taiwan) reduced its discount rate by a greater-than-anticipated 25 basis points to 1.125%. This was the rates first change since a cut of 12.5% in June 2016. Officials also established a special loan facility for small and medium-sized enterprises. The coronavirus will be a big growth depressant […] More
Central Bank Watch
Swiss National Bank to Be Vigilant with Intervention to Contain Franc Strength
March 19, 2020
The Swiss National Bank‘s sight deposit rate of negative 0.75% since January 2015 was retained at that central bank’s quarterly policy review, and officials characterized the franc as even more overvalued than before, which will necessitate more intense intervention in the FX market. Extra steps are being taken to ensure ample liquidity. Officials do not […] More
Central Bank Watch
Australian Interest Rate Cut
March 19, 2020
The Reserve Bank of Australia, which at a scheduled meeting on March 3 had cut its official cash rate by 25 basis points, cut the OCR by an additional 25 bps today to a record low of 0.25%. This move was only part of a multi-pronged package spelled out in a statement. A significant loss […] More
