Thursday, August 28, 2014

Angola maintains rates on stable inflation

    Angola's central bank maintained its benchmark BNA rate at 8.75 percent after inflation rose by 0.09 percent in July for an annual rate of 6.98 percent, up from 6.89 percent in June.
    The Bank of Angola (BNA), which raised its rate by 50 basis points last month, said credit to the economy in July was up by an annual 19.5 percent to 3.295 billion kwanza. The BNA raised its rate last month to stimulate growth in credit as inflation is expected to continue to trend downward.
    The BNA also said total sales of foreign currency in the first seven months amounted to $19.858 billion, an increase of 63.33 percent from the same period in 2013.
    The average exchange rate of the kwanza rose by 0.51 percent in July from June for a rate of 97.08 to the U.S. dollar, slightly firmer from the start of the year at 97.61.
    July's rate cut by the BNA was the first change in rates since November 2013 and the central bank also reduced the rate on its standing lending facility by 25 basis points to 9.75 percent.
    Last month the International Monetary Fund (IMF) forecast that Angola's inflation rate would rise to 7.5 percent by the end of the year due to the one-off effects on new tariffs on imports before continuing the downtrend through 2015 and beyond.

Central Bank News Link List - Aug 28, 2014 - Swiss franc hits 21-month high vs euro, triggers SNB intervention talk

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.

          www.CentralBankNews.info




Egypt pushes back policy meeting to Monday, Sept. 1

    The Central Bank of Egypt (CBE) has changed the date for the meeting of its Monetary Policy Committee to Monday, Sept. 1 from Thursday, Aug. 28.
    The central bank did not provide any reason for the adjustment in a brief statement.
    At its previous meeting on July 17, the CBE surprised financial markets by raising its key interest rates by 100 basis points in a preemptive move to anchor inflation expectations and limit a general increase in prices following the government's price increase on several regulated items, including fuel, electricity and tobacco, as part of its plan to reduce budged deficits.
    Egypt's headline inflation rate jumped to 10.61 percent in July from 8.2 percent and the core inflation rate rose to 9.35 percent from 8.76 percent.
    In addition to raising the benchmark overnight deposit rate by 100 basis points to 9.25 percent, the CBE last month also raise the overnight lending rate to 10.25 percent, the rate on its main operation to 9.75 percent and the discount rate to 9.75 percent.



Wednesday, August 27, 2014

Central Bank News Link List - Aug 27, 2014 - India central bank seen intervening to weaken rupee

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.

          www.CentralBankNews.info



Turkey holds repo rate, cuts overnight funds rate 75 bps

    Turkey's central bank maintained its benchmark repo rate at 8.25 percent, as expected, but continued to nudge down its overnight interest rate corridor and repeated its guidance from July that it would maintain a tight monetary policy stance by "keeping a flat yield curve until there is a significant improvement in the inflation outlook."
    The Central Bank of the Republic of Turkey (CBRT) cut the overnight rate on marginal funding, the ceiling of its interest rate corridor, by 75 basis points to 11.25 percent but maintained the borrowing rate, or the floor in the corridor, at 7.5 percent.
    The CBRT also cut the borrowing rate for primary dealers via repo transactions by 75 basis points to 10.75 percent and the lending rate at its late liquidity window by 75 basis points to 12.75 percent while it kept the borrowing rate at zero percent.
    The Turkish central bank has been slowly rolling back its sharp rate hike in January in response to volatility from capital outflows and a plunge in the value of the lira currency. So far it has cut its benchmark repo rate by 175 basis points since May after raising it by 550 points on Jan. 28.

Tuesday, August 26, 2014

Central Bank News Link List - Aug 26, 2014 - BOJ to stay bullish on prices as it cuts Japan GDP estimate: 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.


Hungary maintains rate at 2.10 percent, as signaled

    Hungary's central bank held its base rate steady at 2.10 percent, living up to its word that it would freeze rates after 24 consecutive rate reductions.
    The National Bank of Hungary on July 22 cut its rate by 20 basis points, for a cumulative reduction of 490 points in its policy rate since August 2012, but added it was ending the two-year easing cycle as the rate had now reached a level that would ensure price stability and provide enough support for economic activity.
    At his press conference, central bank President Gyorgy Matolcsy then said the bank planned to maintain rates at that level until the end of 2015.
    In today's statement, the central bank did not make further comments.
    Last month the central bank said inflationary pressures were likely to remain moderate for an extended period and the negative output gap was expected to close gradually.
    Hungary's headline inflation rate rose to 0.1 percent in July after three months of deflation. In its June quarterly inflation report, the central bank lowered its forecast for inflation this year to an average of zero percent, sharply down from its March forecast of 0.7 percent.

Monday, August 25, 2014

Central Bank News Link List - Aug 25, 2014 - About-face for ECB’s Draghi as he seeks to jolt euro zone into life

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.

          www.CentralBankNews.info


Israel cuts rate 25 bsp to 0.25%, 3rd cut this year

    Israel's central bank cut its benchmark interest rate by another 25 basis points to 0.25 percent, its third cut this year, in response to a further decline in inflation, slower economic growth, a weakening of the shekel and limited recovery of the global economy that is expected to lead to continued accommodative monetary policy by major central banks for an extended period of time.
    The Bank of Israel (BOI), which has cut its rate by a total of 75 basis points this year, repeated its guidance that "he path of the interest rate in the future depends on developments in the inflation environment, growth in Israel and in the global economy, the monetary policies of major central banks, and developments in the exchange rate of the shekel. "
    The BOI issued the following statement with the main considerations behind its decision:

The main considerations behind the decision
The decision to reduce the interest rate for September 2014 by 0.25 percentage points, to 0.25 percent, is consistent with the Bank of Israel's monetary policy which is intended to return the inflation rate to within the price stability target of 1–3 percent a year over the next twelve months, and to support growth while maintaining financial stability. The path of the interest rate in the future depends on developments in the inflation environment, growth in Israel and in the global economy, the monetary policies of major central banks, and developments in the exchange rate of the shekel.

This week in monetary policy: Israel, Angola, Hungary, Turkey, Albania, Fiji, Egypt and Colombia

    This week (August 25 - 29) eight central banks are scheduled to decide on monetary policy: Israel, Angola, Hungary, Turkey, Albania, Fiji, Egypt and Colombia. 
    Following table includes name of the country, its MSCI classification, the date the policy decision will be announced, the current policy rate, and the rate one year ago.

COUNTRY MSCI              DATE  CURRENT  RATE         1 YEAR AGO
ISRAEL DM 25-Aug 0.50% 1.25%
ANGOLA 25-Aug 8.75% 9.75%
HUNGARY 26-Aug 2.10% 3.80%
TURKEY EM 27-Aug 8.25% 4.50%
ALBANIA 27-Aug 2.50% 3.50%
FIJI 28-Aug 0.50% 0.50%
EGYPT EM 28-Aug 9.25% 9.25%
COLOMBIA EM 29-Aug 4.25% 3.25%