The past week in monetary policy saw interest rate decisions
by four emerging market central banks, with Thailand cutting its rates, Chile and Egypt holding rates steady, and Turkey holding rates but effectively easing policy by trimming the top rate of its interest rate corridor.
Thailand’s rate
cut was the only real surprise, with the bank seeking to bolster
domestic demand to make up for exports that are suffering from
weaker global demand.
Apart from Egypt, the banks noted the improved sentiment in global financial markets, including the euro zone, but
Chile said it was still uncertain how Europe’s new policy measures would be implemented
and tensions could flare up in months ahead.
Turkey, whose
exports are still rising, narrowed its interest rate corridor for the second
month, but is being very cautious about easing as inflation is significantly above the central bank’s target.
LAST WEEK'S MONETARY POLICY DECISIONS:
| COUNTRY | MSCI | NEW RATE | OLD RATE | RATE 1 YEAR AGO |
| THAILAND | EM | 2.75% | 3.00% | 3.50% |
| TURKEY | EM | 5.75% | 5.75% | 5.75% |
| CHILE | EM | 5.00% | 5.00% | 5.25% |
| EGYPT | EM | 9.25% | 9.25% | 8.25% |
NEXT WEEK (Week
43) is busy on the central banking front, featuring decisions by 11 central banks,
including the Bank of Canada, the Federal Reserve, New Zealand, Sweden and
Mexico.
| COUNTRY | MSCI | DECISION | CURRENT RATE | RATE 1 YEAR AGO |
| SRI LANKA | FM | 22-Oct | 7.75% | 7.00% |
| CANADA | DM | 23-Oct | 1.00% | 1.00% |
| UNITED STATES | DM | 24-Oct | 0.25% | 0.25% |
| NAMIBIA | 24-Oct | 5.50% | 6.00% | |
| GEORGIA | 24-Oct | 5.75% | 7.25% | |
| NEW ZEALAND | DM | 24-Oct | 2.50% | 2.50% |
| SWEDEN | 25-Oct | 1.25% | 2.00% | |
| PHILIPPINES | EM | 25-Oct | 3.75% | 4.50% |
| FIJI | 25-Oct | 0.50% | 1.50% | |
| MEXICO | EM | 26-Oct | 4.50% | 4.50% |
| TRINIDAD & TOBAGO | 26-Oct | 2.75% | 3.00% |
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