Central Bank Watch
Bank of Mexico Cut Interest Rate, Too
March 21, 2024
Mexico’s overnight interbank interest rate has been sliced to 11.0% from 11.25%. This is the first reduction since February 2021, when the rate settled in at a pandemic low of 4.0% that would last only four months. After increases totaling 150 basis points during the final seven months of 2021, 500 bps in 2022, and […] More
Central Bank Watch
First Major Monetary Authority to Cut Rates Is in Switzerland
March 21, 2024
Among the most closely watched industrial country central banks, the Swiss National Bank today became the first one to actually reduce its policy interest rate. It is not surprising to see the SNB lead the way. Swiss inflation is particularly low, and Switzerland has a gold standard reputation of maintaining price stability. The economy also […] More
Central Bank Watch
Taiwanese Interest Rate Hike
March 21, 2024
A 12.5-basis point interest rate hike announced today by the Central Bank of the Republic of China (Taiwan) also caught market participants by surprise. A 1.875% rate level has been maintained since a similar-sized increase in March 2023 had augmented five earlier increases since February 2022. In taking this additional step, officials acted to avoid […] More
Central Bank Watch
Turkish Monetary Policy Pause Shortlived and Ends With Big Interest Rate Hike
March 21, 2024
Turkish consumer price inflation accelerated from 38.2% in mid-2023 to a 15-month high in February of 67.1%. But after leaving its policy interest rate unchanged at 45% after February’s policy meeting, officials at the Central Bank of Turkey were not expected to modify their stance, which had seen the rate raised from 8.5% since the […] More
Central Bank Watch
50-Basis Point Interest Rate Cuts in Brazil and the Czech Republic
March 21, 2024
The Czech National Bank‘s 2-month repo rate was cut by 50 basis points. This third reduction since December with a combined drop of 125 basis points leaves the rate at 5.75%, still well above consumer price inflation, which has imploded from 18.0% in September 2022 to a 62-month low of 2.0% last month. GDP growth […] More
New Overnight Developments Abroad - Daily Update
A Mixed Bag of Central Bank Moves, Purchasing Manager Surveys, and Current accounts
March 21, 2024
Since Federal Reserve President Powell said the Fed’s view on inflation had not materially changed, several other central banks have chimed in with their decisions. Interest rates were cut in Switzerland, the Czech Republic and Brazil, raised in Turkey and Taiwan, and left steady in Norway and the Bank of England. Preliminary March composite PMI […] More
