Archive for July 21st, 2022

Central Bank Watch

South African Reserve Bank Interest Rate by Most Since 2002

July 21, 2022

Facing the most CPI inflation in 13 years (7.4%), officials at the South African Reserve Bank lifted the repo rate to 5.5% from 4.75%. This was the fifth increase since November 2021 and the largest move in almost two decades. During the first year of the pandemic, the rate had been slashed by 300 basis […] More

Central Bank Watch

Bank of Japan Holds Ground Against Tide of Rising Central Bank Rates

July 21, 2022

The Bank of Japan as expected made no concession to globally generated inflation, this year’s depreciation of the yen, and the trend of other central banks that have been tightening monetary policies. At its latest meeting, the BOJ Board kept its short-term interest rate at -0.1%, which has been the level since March 2013, or […] More

Central Bank Watch

ECB Negative Deposit Rate Ended

July 21, 2022

The European Central Bank’s three key interest rates were raised by 50 basis points, not the 25 bps that it was expecting to go when the previous policy meeting was held in early June. The new rate configuration is a 0.50% refinancing rate, flanked by a zero percent deposit rate and a 0.75% marginal lending […] More

New Overnight Developments Abroad - Daily Update

Slackening Demand and Confidence But Persistently Red-Hot Inflation as Several Central Banks Unveil Latest Policy Decisions

July 21, 2022

The dollar was already lower when the European Central Bank announced a more aggressive rate hike than implied in previous forward guidance. That move pushed the dollar down further such that it currently shows net overnight drops of 0.9% against the euro and 0.6% against the DXY weighted index. By comparison, the dollar is little […] More

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