Sunday, November 23, 2014

Central Bank News Link List - Nov 23, 2014 - China ready to cut rates again on fears of deflation - sources

Here's today's Central Bank News' link list, click through if you missed the previous link list. The list comprises news about central banks that is not covered by Central Bank News. The list is updated during the day with the latest developments so readers don't miss any important news.


Friday, November 21, 2014

Central Bank News Link List - Nov 21, 2014 - China cut reflecting domestic reasons carries global resonance

Here's today's Central Bank News' link list, click through if you missed the previous link list. The list comprises news about central banks that is not covered by Central Bank News. The list is updated during the day with the latest developments so readers don't miss any important news.


China cuts key rate 40 bps, deposit rate by 25 bps

    China's central bank cut its benchmark one-year lending rate by 40 basis points to 5.6 percent, the first rate cut since July 2012, along with the one-year deposit rate that was cut by 25 basis points to 2.75 percent.
    The People's Bank of China (PBOC) said in a statement that the new interest rates would take effect from Saturday, Nov. 22.
    The PBOC also continued the process of liberalizing interest rates, allowing banks to pay depositors up to 1.2 times the benchmark rate, up from 1.1 times.
     In an accompanying statement, the PBOC said the cut in the lending rate was aimed at guiding market rates lower and help reduce loan pricing benchmarks and other financial products.
    Speculation that China's central bank would cut rates has been growing in recent months as its economy continues to slow, especially the manufacturing and housing sector.
    In the third quarter China's Gross Domestic Product (GDP) expanded by 1.9 percent from the second quarter with annual growth rate easing to 7.3 percent, a level not seen since 2009, from 7.5 percent in the second quarter and 7.4 percent in the first quarter.
    China's government's growth target for 2014 is 7.5 percent, the same as in 2013 when the International Monetary Fund (IMF) estimates its GDP grew by 7.7 percent. The IMF estimates 7.4 percent growth this year and 7.1 percent in 2015.
    Last month the central bank injected some 200 billion yuan of three-month loans into its major banks to improve liquidity, a move that prompted talk that the PBOC was getting ready to cut rates.

    www.CentralBankNews.info

Thursday, November 20, 2014

Central Bank News Link List - Nov 20, 2014 - Yellen gets that sinking feeling Greenspan once knew

Here's today's Central Bank News' link list, click through if you missed the previous link list. The list comprises news about central banks that is not covered by Central Bank News. The list is updated during the day with the latest developments so readers don't miss any important news.




South Africa holds rate on lower inflation, weak economy

    South Africa's central bank maintained its benchmark repurchase rate at 5.75 percent, as expected, due to the lower trajectory of inflation and weak state of the economy.
    But the South African Reserve Bank (SARB), which has raised its rate by 75 basis points so far this year, said it still believes that rates have to be raised over time and the "timing of future rate increases will be dependent on a range of factors, including the evolution of inflation expectations, the speed of normalization of monetary policy in the US and the state of the domestic economy."
    The outlook for inflation has improved since the central bank's previous meeting in September, with the risks roughly balanced and headline inflation is now forecast to average 6.1 percent this year, down from the previous forecast of 6.2 percent.
   For 2015 inflation is expected to average 5.3 percent, a sharp drop from the previous forecaster of 5.7 percent and for 2016 the forecast has been revised down to 5.5 percent from 5.8 percent, dropping to 5.4 percent in the final quarter of that year.
    However, given the elevated level of core inflation and that fact that inflation is expected to increase as the impact of lower oil prices dissipates, SARB said it remains vigilant.
    In October, South Africa's headline inflation rate was steady at 5.9 percent, just within the bank's target range of 3 to 6 percent.

   The South African Reserve Bank issued the following statement by its new governor, Lesetja Kganyago, who took over from Gill Marcus earlier this month.

Turkey holds rates, tight stance until inflation improves

    Turkey's central bank kept its policy rates steady, including the benchmark repo rate at 8.25 percent, and confirmed its guidance that the "tight monetary policy stance will be maintained, by keeping a flat yield curve, until there is a significant improvement in the inflation outlook."
    But the Central Bank of the Republic of Turkey (CBRT), which raised its repo rate in January by 550 basis points and then cut it by 175 points from May through July, turned slightly more optimistic about the outlook, saying the contribution of domestic demand to growth was increasing and the moderate course of consumer loans and favorable terms of trade may help reduce the current account deficit.
   As in previous months, the CBRT said elevated food prices continued to delay an improvement in the outlook for inflation though lower commodity prices, in particular falling oil prices were expected to contribute to push down inflation next year, in line with the latest quarterly forecast.
    On Oct. 31, the central bank forecast that inflation in 2015 would decline to a midpoint of 6.1 percent, based on a range 4.6 percent and 7.6 percent, from a midpoint of 8.9 percent at the end of this year and then stabilize at the bank's 5.0 percent target in the medium term.
    Headline inflation rose slightly to 8.96 percent in October from 8.86 percent in September.

Wednesday, November 19, 2014

Zambia raises rate 50 bps, sees elevated inflation into '15

    Zambia's central bank raised its policy rate by 50 basis points to 12.50 percent to "ensure the leveling off of inflation pressures over the third quarter is consolidated into lower inflation in 2015."
    The Bank of Zambia, which has now raised its rate by 275 basis points this year, said inflation is forecast to remain at these elevated levels throughout the rest of this year and into 2015, above the inflation target of 7.0 percent set by the finance minister for end-December 2015.
    Zambia's headline inflation rate rose to 7.9 percent in October from 7.8 percent in September.

    The Bank of Zambia issued the following statement:



"The Monetary Policy Committee (MPC) met yesterday, 18th November 2014, to consider developments in the domestic economy over the third quarter of 2014. In its deliberations, the MPC also considered global economic developments and their likely ramifications on the Central Bank’s ability to achieve its core objective of maintaining price stability.

Central Bank News Link List - Nov 19, 2014 - Fed sees limited impact from overseas weakness, market turmoil

Here's today's Central Bank News' link list, click through if you missed the previous link list. The list comprises news about central banks that is not covered by Central Bank News. The list is updated during the day with the latest developments so readers don't miss any important news.



Georgia holds rate and revises down inflation forecast

    Georgia's central bank held its benchmark refinancing rate steady at 4.0 percent and revised downwards its inflation forecast but confirmed that it still considers it necessary to slowly exit its accommodative policy stance.
    The National Bank of Georgia (NBG) began tightening its policy in February but since then it has held back from further tightening in light of increased risks that impacted domestic and external demand and slowed the process of inflation reaching its 6.0 percent target.
    The NBG said its latest forecast sees inflation reaching its target by the end of 2015.
    In October Georgia's headline inflation rate eased to 3.4 percent from 4.8 percent in September.

    The National Bank of Georgia issued the following statement:
   
"The Monetary Policy Committee (MPC) of the National Bank of Georgia (NBG) met on November 19, 2014 and decided to keep the refinancing rate unchanged at 4 percent.