Central Bank Watch
Central Bank of Russia
September 10, 2021
The Bank of Russia‘s key interest rate was lifted for the fifth time since March. In all, the rate has climbed 250 basis points to 6.75%, but today’s move of 25 basis points matched the previously smallest change, which happened to be the initial increment. With GDP back to its pre-pandemic level and “given high […] More
Central Reserve Bank of Peru
September 10, 2021
The Central Reserve Bank of Peru’s Board of Directors hiked its policy interest rate twice as much as analysts were anticipating to 1.0% from 0.5%. This was the second straight increase after a hike of 25 bps in August, but unlike then, today’s statement admonishes against assuming more moves following immediately: “The current decision does […] More
This Year’s Fourth Central Bank Rate Hike in Ukraine
September 9, 2021
The National Bank of Ukraine‘s policy interest rate was raised for the fourth time this year. Today’s increase of 50 basis points matches the hikes done in July and March, while one in April was by a full percentage point. Altogether, the rate has been raised from 6.0% at the start of the year to […] More
ECB PEPP Tapering to Begin but Precise Change in Pace Not Disclosed
September 9, 2021
The European Central Bank left its -0.50% deposit rate, zero percent refinancing rate and 0.25% marginal lending facility rate unchanged. These record lows have been maintained since March 2016. But an initial step toward tapering quantitative stimulus was announced. While the overall size of the Pandemic Emergency Purchase Program (PEPP) stays at 1.85 trillion euros, […] More
Central Bank of Chile Tightens Again
September 1, 2021
Yesterday’s monetary policy review ended with a greater-than-expected 75-basis point hike in the Central Bank of Chile’s policy interest rate to 1.50%. An initial 25-basis point increase had been authorized at the previous review in July. The latest decision was made unanimously, and officials signaled that interest rate normalization has further to go. At 1.50%, […] More
Iceland’s Second Central Bank Rate Hike of 2021
August 25, 2021
The Central Bank of Iceland’s policy interest rate was increased another 25 basis points to 1.25%. An initial hike of similar size had been engineered earlier this year in May. During the opening five months of 2020, the rate had been reduced by a total of 225 basis points to 0.75%. Iceland is the only […] More
A Third Central Bank Interest Rate Hike in Hungary
August 24, 2021
As was expected, the National Bank of Hungary’s base rate was lifted another 30 basis points at this month’s review of monetary policy. Such follows similar hikes made in June and July and brings the rate level to 0.90%, its highest level since mid-2015. In 2020, two cuts of 15 basis points each had been […] More
Central Bank Rate Hike in Peru
August 13, 2021
An interest rate hike surprise has been sprung by officials at the Central Reserve Bank of Peru. With inflation accelerating there more than half a percentage point to 3.8% in July, monetary policymakers doubled their policy interest rate to 0.5%. This increase was the first change since a pair of 100-basis point reductions in March […] More
Bank of Mexico Officials Implement Second Straight 25-Basis Point Hike of Overnight Interbank Rate
August 12, 2021
The 25-basis point interest rate increases in June and now reverse cuts last February and September, and the new rate level of 4.5% becomes the highest in a year but well below the pre-pandemic level of 7.25%. A statement from the Bank of Mexico foresees a danger of inflation tracking above its baseline forecast because […] More
Bank of England Policy Review
August 5, 2021
The Bank of England’s Monetary Policy Committee again voted unanimously to leave its Bank Rate unchanged at 0.10%. Officials however concede that the recent acceleration of inflation has exceeded their expectations by a significant margin, and they now foresee the 12-month rate of CPI increase to hit 4.0% later this year. Moreover, officials are somewhat […] More
