Friday, March 9, 2012

Monetary Policy Week in Review - 10 March 2012

The past week in monetary policy and central banking saw just one central bank change interest rates, with Brazil cutting rates 75 basis points to 9.75%.  Meanwhile those that held interest rates unchanged were: Australia 4.25%, Kenya 18.00%, Poland 4.50%, New Zealand 2.50%, EU 1.00%, UK 0.50%, Korea 3.25%, Serbia 9.50%, Peru 4.25%, Canada 1.00%, Malaysia 3.00%, and Indonesia 5.75%.  The Reserve Bank of India also made headlines, cutting its Cash Reserve Ratio by 75 basis points to 4.75%.
Looking at the central bank calendar, the main event next week is the US Federal Reserve's FOMC (Federal Open Market Committee), Wall Street will be watching the release closely for any signs of further Quantitative Easing e.g. "QE3" or even sterilized quantitative easing. The Bank of Japan meeting and Swiss National Bank meetings will also be worth watching.


Mar-13
JPY
Japan
Bank of Japan
Mar-13
USD
United States
Federal Reserve
Mar-14
NOK
Norway
Norges Bank
Mar-15
CHF
Switzerland
The Swiss National Bank
Mar-15
INR
India
Reserve Bank of India
Mar-16
MXN
Mexico
Banco de Mexico


3 comments:

  1. So many banks meeting, but not making decisions.... lame, we want more liquidity! :)

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    Replies
    1. Sure, though the two banks that did move; India and Brazil, are very important emerging markets - it's positive to see them making stimulatory moves. In addition, China printed an inflation figure of 3.2% in February, so there may be scope for more stimulus there too; watch this space.

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    2. There's also the chance of some form of further QE from the Fed; though I wouldn't hang my hat on it yet - things aren't that bad.

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