The week in monetary policy saw 8 central banks announcing interest rate decisions. Of those that changed rates were: India +50bps to 8.00%, Nigeria +75bps to 8.75%, and Colombia +25bps to 4.50%. Meanwhile those that held monetary policy interest rates unchanged were: Israel 3.25%, Hungary 6.00%, New Zealand 2.50%, Kenya 6.25%, and the Philippines 4.50%. Other than interest rates, the Philippines raised its required reserve ratio by 100 basis points to 21%, and Turkey dropped its required reserve ratios by 100-200bps to add extra liquidity to the market.
Full Story: http://www.centralbanknews.info/2011/07/monetary-policy-week-in-review-30-july.html [more]
The past week in monetary policy was relatively quiet, with just five central banks announcing interest rate decisions. The only central bank to adjust rates was the Banco Central do Brasil, which increased its Selic rate by 25 basis points to 12.50%. The other banks that held rates unchanged were: Canada at 1.00%, South Africa at 5.50%, Turkey at 6.25%, and Egypt at 8.25%. Elsewhere in central banking, Taiwan's central bank increased commercial bank minimum liquidity requirements as part of an ongoing program to strengthen risk management in the banking system.
Full Story: http://www.centralbanknews.info/2011/07/monetary-policy-week-in-review-23-july.html [more]
The Banco Central Do Brasil increased the Selic interest rate by 25 basis points to 12.50% from 12.25% previously. In its statement, Brazil's Central Bank Monetary Policy Committee (Copom) said: "evaluating the prospective scenario and the balance of risks for inflation, the Copom decided, unanimously, at this moment, to raise the Selic rate to 12.50% p.a., with a neutral bias." The statement dropped the use of the words "prolonged period" in terms of adjusting monetary conditions, suggesting the Bank may be near an end to its tightening cycle. [more]
China just released its June numbers, with 3 separate official sources delivering banking and money stats, international trade stats, and the core economic data. The June GDP numbers were pretty strong in the scheme of things, and the rest of the data pointed to a high likelihood of persistence in economic strength, at least in the medium term. In this article we explore some of the key data points, and come to the conclusion that a hard landing/significant slow down is a not a 2011 story...
Full story: http://econgrapher.blogspot.com/2011/07/china-economic-check-up-nope-no-hard_16.html [more]
The past week in monetary policy was dominated by Asian central banks, with the central banks of Japan, Indonesia, Thailand, and South Korea all announcing interest rate decisions. The only banks to adjust interest rates were Thailand +25bps to 3.25%, and Kenya, which dropped its discount window rate -175bps to 6.25%. Meanwhile those that held interest rates unchanged were: Japan 0.10%, Indonesia 6.75%, Latvia 3.50%, South Korea 3.25%, and Chile 5.25%. Elsewhere in monetary policy and central banking, Brazil's central bank announced further policy measures to curb speculation on its currency, the Real. [more]
This report outlines where inflation is tracking in countries where the central bank has an inflation target. Central Bank News has compiled a table of countries/central banks that have publicly announced an official inflation target. In some cases the target is a government target, but in many cases it is one of the central bank's key performance indicators. Of the 32 countries that Central Bank News is monitoring, which have inflation targets; 24 last reported inflation above target, 1 had inflation below target, and 7 reported inflation within their target range. Note, the inflation figures in the table below are all on a headline, or gross, inflation basis.
Full Story: http://www.centralbanknews.info/2011/07/inflation-targeting-in-rising.html [more]
The past week in monetary policy saw interest rate decisions from 14 central banks around the world, of which 7 made changes in their monetary policy settings. Those that increased interest rates were: Sweden +25bps to 2.00%, China +25bps to 6.56%, the EU +25bps to 1.50%, and Denmark +25bps to 1.55%. While those that cut rates included Vietnam, which cut its OMO rate -100bps to 14.00%, and Ghana -50bps to 12.50%. Those that held rates unchanged were: Australia 4.75%, Poland 4.50%, Malaysia 3.00%, the UK 0.50%, Sri Lanka 7.00%, Rwanda 6.00%, and Mexico 4.50%. Also, setting monetary policy interest rates for the first time was the Bank of Uganda, which set its new monetary policy rate, the central bank rate, at 13.00%.
Full Story: http://www.centralbanknews.info/2011/07/monetary-policy-week-in-review-9-july.html [more]
This article reviews the monetary policy interest rate activity of the world's central banks during the first half of 2011. The key takeaway is that monetary policy tightening has been the dominant game for most emerging market central banks in the first half of the year, however the majority of central banks are still in the no-change camp. Indeed of the 79 central banks that Central Bank News monitors, 33 made net increases to their interest rates, while 40 held their rates net unchanged, and only 6 made net reductions to their policy interest rates. [more]
Over the past week there were 6 central banks announcing monetary policy decisions. Only Kenya (+175bps to 8.00%), and Taiwan (12.5bps to 1.875) increased interest rates. Meanwhile the central banks of Israel (3.25%), Albania (5.25%), Romania (6.25%), and Russia (8.25%) all held monetary policy settings unchanged. Also of interest in central banking news was the announcement from the BIS [Bank for International Settlements] around increasing capital requirement regulations for globally systemically important banks. The BIS also featured in the news as it stressed the need for central banks around the world to normalise monetary policy in order to promote sustainable economic growth.
Full story: http://www.centralbanknews.info/2011/07/monetary-policy-week-in-review-2-july.html [more]