Central Bank Watch
Indonesian Interest Rate Cut
June 18, 2020
Indonesia’s policy interest rate has been reduced 25 basis points to 4.25%. This was the third such drop in 2020 following 25-basis point cuts in February and May. Officials at Bank Indonesia likely was sliced 25 basis points from their overnight deposit and lending rates to create a new corridor that runs from 3.5% to […] More
Central Bank Watch
Central Bank of Brazil Authorizes 75-Basis Point Rate Cut
June 18, 2020
As was expected, Brazil’s monetary policy committee known as Copom cut its Selic interest rate by another 75 basis points to 2.25% and matching the reduction made in May. A pair of 25-basis point reductions were done earlier in February and March. In a released statement from the Central Bank of Brazil, however, officials noted […] More
Central Bank Watch
Swiss National Bank Keeps -0.75% Interest Rate Target
June 18, 2020
The scheduled quarterly monetary policy review at the Swiss National Bank ended with officials leaving their policy rate unchanged at negative 0.75% and doubling down on the need for forceful currency market intervention to counter safe-haven demand and limit the franc’s appreciation. GDP is projected to drop 6% this year in a released statement, and […] More
Central Bank Watch
Bank of England Expands Quantitative Stimulus
June 18, 2020
The Bank of England by a vote of 8-1 increased its asset buying ceiling from GBP 645 billion to a new level of GBP 745 billion. The Monetary Policy Committee members expect to hit that ceiling by the end of 2020. The program was raised back on March 19 by GBP 200 billion from a […] More
New Overnight Developments Abroad - Daily Update
More Concern than Hope in Thursday’s Marketplace
June 18, 2020
It’s been a busy day for central bank watchers, as monetary policy was reviewed in the U.K., Norway, Switzerland, Brazil, Taiwan, and Indonesia. Released statements and some new data adhere to the baseline view that economic activity contracted even more sharply in the second quarter than the first but that the rate of slide began […] More
