Here's a listing of the top ten most extreme monetary policy moves in the year to date of 2011 (as judged by Central Bank News). To be sure, there's still another quarter of the year to go, and with heightened concerns about global growth and the ongoing European debt crisis the list could yet be expanded. But for now, let's look over some of the most extreme moves in the year so far in monetary policy... [more]
The past week in monetary policy saw 10 central banks reviewing monetary policy settings, with just 1 (Nigeria +50bps to 9.25%) changing interest rates. Those that held rates unchanged were: Morocco 3.25%, Turkey 5.75%, Hungary 6.00%, Norway 2.25%, USA 0.25%, Iceland 4.50%, Hong Kong 0.50%, South Africa 5.50%, and the Czech Republic 0.75%. On required reserve ratios, Croatia increased its RRR by 100bps to 14.00%. Of course the biggest news was the US Federal Reserve's FOMC announcing 'operation twist', where it adjusted its quantitative easing program; switching $400B of shorter term maturities to $400B of longer term maturities.
Article source: http://www.centralbanknews.info/2011/09/monetary-policy-week-in-review-24.html [more]
The past week in monetary policy saw 13 central banks review interest rate levels and monetary policy settings. Those that changed rates were: Belarus +300bps to 30.00%, Kenya +75bps to 7.00%, and India +25bps to 8.25%. Russia and Denmark also adjusted the bands of their deposit and lending rates, while holding their main rates steady. The Banks that held rates unchanged were: Mauritius 5.50%, Mozambique 16.00%, Russia 8.25%, New Zealand 2.50%, Switzerland 0-0.25%, Georgia 7.50%, Latvia 3.50%, Denmark 1.55%, Sri Lanka 7.00%, and Chile 5.25%. Also making headlines in central banking was the announcement from the ECB of joint US dollar liquidity operations as a move to augment European banking system liquidity.
Full Story: http://www.centralbanknews.info/2011/09/monetary-policy-week-in-review-17.html [more]
The past week in central banking saw interest rate announcements from 17 central banks around the world. Just 4 of those central banks announced changes to interest rates: Armenia cut by -50bps to 8.00%, Tunisia cut by -50bps to 3.50%, and Serbia cut by -50bps to 11.25%, while Uganda increased by +200bps to 16.00%. Meanwhile those that held interest rates unchanged were: Australia 4.75%, Sweden 2.00%, Canada 1.00%, Japan 0-0.1%, ECOWAS 4.25%, Poland 4.50%, South Korea 3.25%, Indonesia 6.75%, Philippines 4.50%, Malaysia 3.00%, Peru 4.25%, United Kingdom 0.50%, and the European Union 1.50%. The other big news in central banking was the Swiss National Bank's move to set the EURCHF exchange rate floor of a minimum 1.20. Also making headlines was key ECB official, Jürgen Stark, announcing his resignation.
Full story: http://www.centralbanknews.info/2011/09/monetary-policy-week-in-review-10.html [more]
The Swiss National Bank (SNB) announced it "will no longer tolerate a EUR/CHF exchange rate below the minimum rate of CHF 1.20". The Swiss central bank further noted that it "will enforce this minimum rate with the utmost determination and is prepared to buy foreign currency in unlimited quantities". The SNB explained "The current massive overvaluation of the Swiss franc poses an acute threat to the Swiss economy and carries the risk of a deflationary development." and noted that it is "therefore aiming for a substantial and sustained weakening of the Swiss franc."
The past week in monetary policy saw just 4 central banks review interest rate settings: Belarus increased +500bps to 27.00%, Brazil dropped -50bps to 12.00%, Israel held at 3.25% and Ghana held at 12.50%. Aside from interest rates, the People's Bank of China was reported as planning to increase the scope of its Required Reserve Ratio, which by some estimates would amount to an effective 100 basis point increase. Also on required reserves, the State Bank of Vietnam raised its foreign currency required reserve ratios by 100 basis points. [more]