The past week in monetary policy saw interest rate decisions by 11 central banks around the world, with 4 (Australia, Uganda,Kuwait and Pakistan) cutting rates, and the remaining 7 (Poland, Iceland, the ECB, the UK, Malawi, Japan and Russia ) holding rates steady.
Poland’s decision to maintain rates was the main surprise of the week as it was expected to cut due to a weakening economy. But it held out the prospect of a cut if the economy continues to slow and inflation remains under control.
The main message from last week’s statements was that the global economy is still contracting but could be close to bottoming out, with the Bank of Japan pointing to an expected gradual improvement in overseas economies, Poland putting off a rate cut until a further slowdown is confirmed and Iceland noting that risks from Europe’s debt crises were abating.
LAST WEEK'S MONETARY POLICY DECISIONS:
|COUNTRY||NEW RATE||PREVIOUS RATE||RATE 1 YEAR AGO|
|EURO AREA (ECB)||0.75%||0.75%||1.50%|
NEXT WEEK: The central bank calendar next week calls for six central banks to consider monetary policy: Morocco, Brazil, Indonesia, South Korea, Peru and Singapore.
In addition, governors of many central banks will travel to Tokyo for the annual meetings of the International Monetary Fund and the World Bank on Friday and Saturday. The main chapters of the IMF’s World Economic Outlook will be released on Tuesday.
Among the governors already scheduled to attend meetings in Tokyo are ECB President Mario Draghi, Federal Reserve President Ben Bernanke and People’s Bank of China Governor Zhou Xiachuan.
|COUNTRY||MEETING||CURRENT RATE||RATE 1 YEAR AGO|