- Egypt pound weakens to record as central bank sells dollars (Bloomberg)
- China PBOC says price stable, to guide steady credit growth (MNI)
- Japan rebuke to G-20 nations may signal moves to weaken yen (Bloomberg)
- Venezuela sees 2012 inflation at 19.9 pct, below target (Reuters)
- ECB's Asmussen: No signs of rising inflation - report (dow jones)
- Peru central bank raises reserve requirements to cool credit (Bloomberg)
- UAE central bank limits home loans to foreigners: sources (al arabiya/reuters)
- Credit has best rally in Europe since 2009 with central bank aid (Bloomberg)
- Nigeria: Analysts foresee lower interest rates in 2013 (allafrica)
- Salameh says (Lebanon) central bank to preserve monetary stability in 2013 (naharnet)
- Peru to attend bimonthly BIS meeting of central bank governors (andina)
- www.CentralBankNews.info
Monday, December 31, 2012
Central Bank News Link List - Dec. 31, 2012: Egypt pound weakens to record as central bank sells dollars
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
Dominican Republic holds rate, inflation close to target
The Dominican Republic's central bank held its key interest rates unchanged, saying it would maintain a cautious stance given the uncertain international scenario and an inflation rate that is in line with the bank's target.
The Central Bank of the Dominican Republic (BCRD) kept its key interest rate steady at 5.0 percent and the Lombard rate steady at 7.0 percent. The BCRD has cut its benchmark rate by 175 basis points this year, the most recent 50 basis point cut was in August.
The inflation rate in the Dominican Republic rose slightly to 3.37 percent in November from 2.87 percent in October and the central bank expects the rate to be around 4.0 percent at the end of the year, within the bank's target range of 5.0 percent, plus/minus one percentage point.
"Market expectations are in line with the BCRD's inflation projection while no significant deviations are looming in the monetary policy horizon, even considering the impact of tax reform on domestic prices," the central bank said in a statement from Dec. 30.
Growth prospects for emerging economies show positive signals with no major changes in the prices of primary goods, the bank said. But the euro zone's economy is expected to remain in recession next year and the inability so far to find a solution to the U.S. fiscal problems could have a significant impact on economic activity and affect the nations that trade with the U.S.
The Central Bank of the Dominican Republic (BCRD) kept its key interest rate steady at 5.0 percent and the Lombard rate steady at 7.0 percent. The BCRD has cut its benchmark rate by 175 basis points this year, the most recent 50 basis point cut was in August.
The inflation rate in the Dominican Republic rose slightly to 3.37 percent in November from 2.87 percent in October and the central bank expects the rate to be around 4.0 percent at the end of the year, within the bank's target range of 5.0 percent, plus/minus one percentage point.
"Market expectations are in line with the BCRD's inflation projection while no significant deviations are looming in the monetary policy horizon, even considering the impact of tax reform on domestic prices," the central bank said in a statement from Dec. 30.
Growth prospects for emerging economies show positive signals with no major changes in the prices of primary goods, the bank said. But the euro zone's economy is expected to remain in recession next year and the inability so far to find a solution to the U.S. fiscal problems could have a significant impact on economic activity and affect the nations that trade with the U.S.
Saturday, December 29, 2012
Monetary Policy Week in Review – Dec. 29, 2012: One bank cuts, boosting 2012's rate cuts to 127 vs 31 rate rises
Last week five central banks
took monetary policy decisions, with one bank (Israel) cutting its rates, one
(Uruguay) raising its rates and the other three banks (Botswana, Albania and
Angola) leaving rates on hold, wrapping up a year dominated by monetary easing, whether through conventional or unconventional means.
During 2012 policy rates have
been cut 127 times by the 88 central banks followed by Central Bank News
compared with just 31 rate rises, illustrating how weak global demand has kept
inflation at bay, allowing central banks worldwide to open the flood gates of
easy money and stimulate economic activity.
Last week’s rate cut by Israel
brought the number of rate cuts by developed market central banks to 18
compared with zero rate rises, showing how advanced economies that are fully exposed to global markets have been battered by Europe's political and economic crises.
Israel’s fourth rate cut of the
year was another example of central banks’ taking advantage of the “absence of
inflationary pressures” to give another, and possibly final boost to the
economy which is expected to weaken slightly next year.
But Uruguay’s second rate rise of
the year reminds us that there are still quite a few pockets in the world where
the fight against inflation dominates the central banking agenda. In Uruguay’s
case, inflation is being fuelled by strong economic growth and capital inflows. With inflation substantially above the central bank’s target range, 2013 could bring further rate hikes.
Angola’s central bank, which is
still celebrating inflation falling to its long-held target of single-digits,
held rates steady and is enjoying stable conditions.
Botswana also held rates
steady, citing a positive inflationary outlook based on “weak domestic demand
and modest external inflationary pressures” – a scenario that captures the
conditions facing most central banks worldwide.
LAST WEEK’S
(WEEK 52) MONETARY POLICY DECISIONS:
| COUNTRY | MSCI | NEW RATE | OLD RATE | 1 YEAR AGO |
| ISRAEL | DM | 1.75% | 2.00% | 2.75% |
| BOTSWANA | 9.50% | 9.50% | 9.50% | |
| ALBANIA | 4.00% | 4.00% | 4.75% | |
| ANGOLA | 10.25% | 10.25% | 10.50% | |
| URUGUAY | 9.25% | 9.00% | 8.75% |
NEXT WEEK (Week 1 of 2013)
looks very quiet on the central banking front, with only the Bank of Uganda
scheduled to kick off the new year. Uganda was 2012’s second largest rate
cutter, having cut rates by 11 percentage points, and is benefitting from “subdued”
inflationary pressures.
| COUNTRY | MSCI | MEETING | RATE | 1 YEAR AGO |
| UGANDA | 3-Jan | 12.00% | 23.00% |
Friday, December 28, 2012
Uruguay raises rate for 2nd time, inflation rises further
Uruguay's central bank raised its policy rate by another 25 basis points to 9.25 percent in an attempt to rein in inflation and keep inflationary expectations in check.
Banco Central del Uruguay (BCU), which also raised rates at its previous meeting in September, said the country's economy was continuing to grow at a reasonable pace, propelled by higher exports and services, rising private investment and strong domestic demand.
But inflation is the central risk facing Uruguay's economy and "both the actual inflation rate as well as agents' expectations remain well above the target range," BCU said in statement.
Uruguay's Gross Domestic Product rose by 1.2 percent in the third quarter from the second for annual growth of 3 percent, down from a second quarter rate of 3.8 percent.
The inflation rate in October rose to a new high for the year at 9.1 percent compared with September's 8.6 percent, well above the central bank's 4-6 percent target range.
The bank has now raised rates by a total of 50 basis points this year.
BCU said the global economic context still looks weak and uncertain and it expects international interest rates to remain "extremely low for the policy horizon with predictable consequences for capital flows."
Banco Central del Uruguay (BCU), which also raised rates at its previous meeting in September, said the country's economy was continuing to grow at a reasonable pace, propelled by higher exports and services, rising private investment and strong domestic demand.
But inflation is the central risk facing Uruguay's economy and "both the actual inflation rate as well as agents' expectations remain well above the target range," BCU said in statement.
Uruguay's Gross Domestic Product rose by 1.2 percent in the third quarter from the second for annual growth of 3 percent, down from a second quarter rate of 3.8 percent.
The inflation rate in October rose to a new high for the year at 9.1 percent compared with September's 8.6 percent, well above the central bank's 4-6 percent target range.
The bank has now raised rates by a total of 50 basis points this year.
BCU said the global economic context still looks weak and uncertain and it expects international interest rates to remain "extremely low for the policy horizon with predictable consequences for capital flows."
Angola keeps rate steady, inflation and FX rates stable
Angola's central bank kept its base rate (BNA) steady at 10.25 percent against a backdrop of stable inflation and kwanza exchange rates.
The National Bank of Angola said credit to the economy returned to growth in November, continuing the trend from previous months. Loans in local currency represent almost 60 percent of total credit to the economy.
Angola's inflation rate was largely steady in November, with prices up 0.93 percent from the previous month for an annual rate of 9.83 percent compared with October's 9.76 percent rate.
The prices for Housing, Water and Electricity, Gas and Fuel; Transportation; Food and non-alcoholic beverages recording the largest price changes, the central bank said.
Angola's central bank last cut its rates in January and the decline in inflation to a single-digit level has been its aim for many years.
The average exchange rate of the kwanza to the U.S. dollar was at 95.712 at the end of November, "reflecting the stability observed since the beginning of the year," the central bank said, repeating its statement from last month.
Interest rates on government bonds also eased during November, the bank said, with the LUIBOR overnight rate at 6.25 percent and 3 and 12 month rates at 8.53 percent and 10.56 percent, respectively.
www.CentralBankNews.info
The National Bank of Angola said credit to the economy returned to growth in November, continuing the trend from previous months. Loans in local currency represent almost 60 percent of total credit to the economy.
Angola's inflation rate was largely steady in November, with prices up 0.93 percent from the previous month for an annual rate of 9.83 percent compared with October's 9.76 percent rate.
The prices for Housing, Water and Electricity, Gas and Fuel; Transportation; Food and non-alcoholic beverages recording the largest price changes, the central bank said.
Angola's central bank last cut its rates in January and the decline in inflation to a single-digit level has been its aim for many years.
The average exchange rate of the kwanza to the U.S. dollar was at 95.712 at the end of November, "reflecting the stability observed since the beginning of the year," the central bank said, repeating its statement from last month.
Interest rates on government bonds also eased during November, the bank said, with the LUIBOR overnight rate at 6.25 percent and 3 and 12 month rates at 8.53 percent and 10.56 percent, respectively.
www.CentralBankNews.info
Central Bank Calendar 2013
Central Bank News provides you with the 2013 calendar for meetings by central bank committees that decide monetary policy. The table includes scheduled meetings of over 25 of the world's central banks. In the event that meetings by monetary policy committees take place over several days, the date listed below is for the final day when decisions are normally announced.
Work is underway to expand the number of central banks covered, including expanding the existing inflation targets table, and global interest rates table. You may replicate the table in part or in full only if you link to this page.
Central Bank News - 2013 Global Central Bank Calendar
Work is underway to expand the number of central banks covered, including expanding the existing inflation targets table, and global interest rates table. You may replicate the table in part or in full only if you link to this page.
Central Bank News - 2013 Global Central Bank Calendar
| DATE | FX CODE | COUNTRY | CENTRAL BANK |
| 3-Jan | UAH | Uganda | Bank of Uganda |
| 7-Jan | RON | Romania | National Bank of Romania |
| 9-Jan | THB | Thailand | Bank of Thailand |
| 9-Jan | PLN | Poland | National Bank of Poland |
| 10-Jan | IDR | Indonesia | Bank Indonesia |
| 10-Jan | GBP | United Kingdom | Bank of England |
| 10-Jan | EUR | Euro area | European Central Bank |
| 11-Jan | KRW | Korea | Bank of Korea |
| 16-Jan | BRL | Brazil | Banco Central do Brasil |
| 17-Jan | RSD | Serbia | National Bank of Serbia |
| 18-Jan | MXN | Mexico | Banco de Mexico |
| 22-Jan | JPY | Japan | Bank of Japan |
| 23-Jan | CAD | Canada | Bank of Canada |
| 23-Jan | ARS | Argentina | Central Bank of Argentina |
| 24-Jan | PHP | Philippines | Central Bank of Philippines |
| 24-Jan | ZAR | South Africa | South African Reserve Bank |
| 28-Jan | ILS | Israel | Bank of Israel |
| 29-Jan | HUF | Hungary | Magyar Nemzeti Bank |
| 30-Jan | USD | United States | Federal Reserve |
| 31-Jan | NZD | New Zealand | Reserve Bank of New Zealand |
| 31-Jan | MYR | Malaysia | Central Bank of Malaysia |
| 5-Feb | AUD | Australia | Reserve Bank of Australia |
| 5-Feb | UAH | Uganda | Bank of Uganda |
| 5-Feb | RON | Romania | National Bank of Romania |
| 6-Feb | ISK | Iceland | Central Bank of Iceland |
| 6-Feb | PLN | Poland | National Bank of Poland |
| 7-Feb | GBP | United Kingdom | Bank of England |
| 7-Feb | EUR | Euro area | European Central Bank |
| 8-Feb | PHP | Philippines | Central Bank of Philippines |
| 12-Feb | IDR | Indonesia | Bank Indonesia |
| 13-Feb | SEK | Sweden | Sveriges Riksbank |
| 13-Feb | GEL | Georgia | National Bank of Georgia |
| 14-Feb | JPY | Japan | Bank of Japan |
| 14-Feb | KRW | Korea | Bank of Korea |
| 20-Feb | THB | Thailand | Bank of Thailand |
| 25-Feb | ILS | Israel | Bank of Israel |
| 26-Feb | HUF | Hungary | Magyar Nemzeti Bank |
Thursday, December 27, 2012
Central Bank News Link List - Dec. 28, 2012: PBOC: China economy shows more 'positive factors'
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
- PBOC: China economy shows more 'positive factors' (dow jones)
- Under siege, Japan central bank wakes up to political reality (Reuters)
- Brazil central bank eases reserve rules to boost investment (Reuters)
- Brazil 'took away the banquet' to counter currency wars - minister (dow jones)
- Total centra bank reserves rise in Q3 (dow jones)
- Greek central bank says eur50 billion enough to recap banks (WSJ)
- Serb central bank amends bad debt rules to boost credit (Bloomberg)
- China PBOC allows cross-border yuan loans in Shenzhen Qianhai (MNI)
- Enough liquid assets in Azerbaijani banking sector to cover half of public deposits (trend.az)
- www.CentralBankNews.info
Central Bank News Link List - Dec. 27, 2012: Japan PM adviser urges unlimited BOJ easing, higher price goal
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
- Japan PM adviser urges unlimited BOJ easing, higher price goal (Reuters)
- Venezuela's economy grew 5.5% in 2012-central bank (dow jones)
- Poland should cut rates to counter zloty strengthening-deputy minister (dow jones)
- Brazil real rises most among world currencies on intervention (Bloomberg)
- China central bank vows to step up financial reforms (scmp)
- Bank of Korea narrows 2013 inflation target to 2.5-3.5% (globaltimes)
- Ulyukayev may head Russian central bank, Storchak says (Bloomberg)
- Korea cuts 2013 growth estimate as European crises lingers (Bloomberg)
- CBA (Azerbaijan) to target 5-6% inflation in 2013 (trend.az)
- Bank of Korea narrows 2013 inflation target to 2.5-3.5% (globaltimes)
- ECB Coene: Still have room to manoeuver on interest rates (Dow Jones)
- (China) bank profits fading as interest rate reform begins (global times)
- Analysis: Puzzle of weak investment jeopardizes growth rebound (Reuters)
- www.CentralBankNews.info
Wednesday, December 26, 2012
Botswana holds rate, sees inflation moving to target
Botswana's central bank kept its Bank Rate steady at 9.5 percent, saying economic output will remain below potential in the medium while inflation is expected to move toward the bank's target in the second half of 2013 but remain above target in the short run due to temporary factors.
Based on its economic assumptions, the Bank of Botswana said that keeping its rates on hold would be consistent with inflation meeting the bank's 3-6 percent target range. The bank has held rates steady since December 2010.
Inflation in Botswana rose to 7.4 percent in November from 7.1 percent in October, mainly due to higher administered prices, but weak domestic demand and modest external inflationary pressures contribute to a positive inflation outlook, the bank said.
"However, the underlying trend remains downwards and, in the circumstances, inflation is expected to converge to the medium-term objective range in the second half of 2013," the bank said in a statement after a meeting of its Monetary Policy Committee on Dec. 24.
Botswana's Gross Domestic Product rose by 8.7 percent to the year ended in June with non-mining output up by 12.1 percent but mining output was down by 8 percent. But non-mining GDP is expected to remain below potential in the medium term and therefore be non-inflationary, the bank said.
www.CentralBankNews.info
Based on its economic assumptions, the Bank of Botswana said that keeping its rates on hold would be consistent with inflation meeting the bank's 3-6 percent target range. The bank has held rates steady since December 2010.
Inflation in Botswana rose to 7.4 percent in November from 7.1 percent in October, mainly due to higher administered prices, but weak domestic demand and modest external inflationary pressures contribute to a positive inflation outlook, the bank said.
"However, the underlying trend remains downwards and, in the circumstances, inflation is expected to converge to the medium-term objective range in the second half of 2013," the bank said in a statement after a meeting of its Monetary Policy Committee on Dec. 24.
Botswana's Gross Domestic Product rose by 8.7 percent to the year ended in June with non-mining output up by 12.1 percent but mining output was down by 8 percent. But non-mining GDP is expected to remain below potential in the medium term and therefore be non-inflationary, the bank said.
www.CentralBankNews.info
Central Bank News Link List - Dec. 26, 2012: New Japan PM Abe says will pursue bold monetary policy
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
- New Japan PM Abe says will pursue bold monetary policy (Reuters)
- (Russian) central bank seen easing in Q2 2013 as growth slows (Reuters/Moscow Times)
- Turkey central bank unveils new tool to limit bank debt risk (Bloomberg)
- BOJ Nov minutes: Need to enhance impact of policy on FX (MNI)
- India new bank capital rules to start in April - central bank (Reuters)
- Turkey central bank expects 4 pct growth next year (dailystar)
- Bank of Israel says rate cut not sign of recession (Dow Jones)
- (India) interest rates will come down in 2013: experts (rediff)
- Philippine central bank sees annual inflation in Dec at2.6-3.5 pct (Reuters/brecorder)
- Without EU, Iceland central bank favors managed crown float (Reuters/Business Recorder)
- Esther George not afraid to take hard stand on easing (US) monetary policy (Denver Post)
- India joins Indonesia facing heightened policy dilemma (Bloomberg)
- Central bank of Cuba expands lending policy (Havana Times)
- The next (Taiwan) central bank governor (focustaiwan)
- Myanmar's central bank heads for the Cloud (WSJ)
- www.CentralBankNews.info
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