Central Bank Watch
Swiss National Bank
June 22, 2023
Officials at the Swiss National Bank review policy only quarterly and today implemented a fifth straight hike, this time by a reduced 25 basis points to 1.75%. That’s the highest level in 21 years and contrasts sharply with -0.75% that prevailed from January 2015 until June 2022. Swiss CPI inflation was only 2.2%, but officials […] More
Central Bank Watch
Bank of England Rate Hike Surpasses Expectations
June 22, 2023
As in Norway’s case, the Bank of England’s bank rate hike today of 50 basis points surpassed analyst expectations of a 25 basis point move as had been done in both February and March. Following an initial post-pandemic hike of 15 basis points to 0.25% in December 2021, the bank rate had been raised 8 […] More
Central Bank Watch
Central Bank of Turkey
June 22, 2023
One of the most bizarre monetary policies in recent years has involved the Central Bank of Turkey. In spite of very elevated inflation, Turkey’s one-week repo rate had been cut from 19% in 2021 to 8.5% after a 50-basis point reduction this past February. Sharply easier monetary policy had fanned a vicious cycle of currency […] More
Central Bank Watch
Bank of Norway
June 22, 2023
In spite of the Fed’s example of pausing for awhile to assess the uncertain effects of higher interest rates on growth and inflation, several other central banks raised rates today. One of these was the Bank of Norway. Analysts were not surprised by the tightening but had been expecting an increase of 25 basis points, […] More
New Overnight Developments Abroad - Daily Update
A Variety of Central Bank Interest Rate Decisions but Only Japan Not Taking Inflation Seriously
June 22, 2023
Fed Chairman Powell will reprise yesterday’s testimony before the Senate Banking Committee this morning. In explaining last week’s pause, he’s clarified that it was nothing more than that and that 50 more basis points of tightening seems the most likely scenario over the rest of 2023. A bunch of other central banks announced decisions as […] More
