Central Bank Watch
Interest Rate Hike in Sweden and South Africa
November 24, 2022
The Swedish Riksbank’s repo rate was increased today by 75 basis points to 2.5%, and another increase early in 2023 is also anticipated. Even before the pandemic’s onset, Riksbank officials had experimented with a negative interest rate of as much as -0.50% until a pair of 25-basis point hikes in December 2018 and December 2019. […] More
Central Bank of Turkey Takes One More Rate Cut for the Road
November 24, 2022
The curious case of monetary policy at the Central Bank of Turkey moved further down the rabbit hole today with a 150-basis point additional drop in the policy rate to 9.0%. That’s ten percentage points below the 19% level that prevailed from March 2021 until September 2o21. This easing has been juxtaposed against accelerating inflation, […] More
Rate Hikes at the Reserve Bank of New Zealand and the Central Bank of Iceland
November 23, 2022
Although not a surprise to investors, the Reserve Bank of New Zealand official cash rate was increased by a larger 75-basis point increment to 4.25%. The prior five changes had been each an increase of a half percentage point. At the start of the tightening cycle in October 2021, the rate had been just 0.25%. […] More
50-Basis Point Israeli Central Bank Rate Hike Brings Cumulative Increase Since April to 315 Basis points
November 21, 2022
The Bank of Israel’s new policy rate now becomes 3.25%, an 11-year high after the sixth increase this year. The rate had previously been just 0.10% since a 15-basis reduction in April 2020 and maintained there for two years. Like many monetary authorities around the world, Bank of Israel officials are fighting above-target and increasingly […] More
Indonesian and Filipino Central Bank Rate Hikes
November 17, 2022
Bank Indonesia’s policy interest rate underwent its fourth increase since an initial 25-basis point move in August, rising to 5.25% from 4.75%. Hikes in September and October had also been by a half percentage point. In response to the pandemic, five 25-basis point cuts in 2020 were culminated with a final reduction to 3.50% in […] More
Mexican and Peruvian Monetary Policies Tightened
November 11, 2022
Interest rate hikes were announced late Thursday in Mexico and Peru. The Bank of Mexico‘s overnight interbank interest rate was raised by an as-expected 75 basis points to 10.0%. The policy rate has been increased at twelve straight policy reviews since June 2021, including moves of 75 basis points each in the latest four instances. […] More
Another Central Bank Rate Hike in Serbia
November 10, 2022
Officials at the National Bank of Serbia today announced their third straight 50-basis point interest rate hike and seventh increase since April. The rate had been 1.0% from December 2020 until tightening started earlier this year. Serbian inflation remains far above the new policy rate of 4.5%. Opting for a gradual and calibrated tightening of […] More
Incremental Size of Norwegian Rate Hike Reduced but Normalization Process Not Over
November 3, 2022
The Bank of Norway’s policy interest rate had been slashed early in 2020 from 1.50% to zero percent, where such remained from May of that year until a 25-basis point increase in September 2021. Two more 25-bp increases were done in September and December of last year, and with inflation intensifying, a trio of 50-basis […] More
Malaysia’s Fourth 25-Basis Point Central Bank Rate Hike Since May
November 3, 2022
The overnight interest rate of Bank Negara Malaysia was raised by another 25 basis points as expected to 2.75%, which brings such back to its level in February 2020 after the first of four cuts early in the pandemic. The rate had been 1.75% from July 2020 until May 2022. A released statement projects continuing […] More
Comment on FOMC Statement and Powell’s Press Conference
November 2, 2022
The opening two paragraphs describing U.S. growth and inflation, the impact of Russia war on such, and the prioritization of the Fed’s two mandates are unrevised. Paragraph 3 confirms that the federal funds rate target range is indeed rising 75 basis points to 3.75-4.0% in line with earlier rhetorical guidance. The committee agreed also to […] More
