Colombia's central bank held its benchmark interest rate steady at 3.25 percent, as expected, saying economic growth is expected to improve during the year due to earlier rate cuts and government spending though the downside risks have recently risen.
The Central Bank of Colombia, which has held rates steady since April after cutting them by 200 basis points since July 2012, also said it was possible that the recent devaluation of emerging market currencies, including Colombia's peso, would continue "and contribute to a better performance of the tradeable sectors of the economy, and hence, to a more balanced growth."
The central bank did not make any comments about its foreign exchange intervention program that is set to expire at the end of September.
Trade data suggest that domestic demand and economic growth in the second quarter will exceed the first quarter, the central bank said, adding that household consumption and investment in civil works and buildings probably grew at a slightly higher rate. Growth in the mining, agriculture and trade sectors would also accelerate while industry would shrink again, though less pronounced.
Friday, August 30, 2013
Angola cuts rate 25 bps as inflation falls further
Angola's central bank reduced its main policy rate by 25 basis points to 9.75 percent as monthly inflation rose by only 0.52 percent, the lowest ever recorded.
The National Bank of Angola (BNA), which also cut its rate by 25 basis points in in January, also cut the rate on its standing lending facility to 11 percent from 11.25 percent and the rate on its standing liquidity absorbtion facility to 0.75 percent from 1.0 percent.
Angola's annual inflation rate eased to 9.04 percent in July from 9.19 percent in June, continuing the stable trend with inflation between 9 and 10 percent in the last 12 months.
www.CentralBankNews.info
The National Bank of Angola (BNA), which also cut its rate by 25 basis points in in January, also cut the rate on its standing lending facility to 11 percent from 11.25 percent and the rate on its standing liquidity absorbtion facility to 0.75 percent from 1.0 percent.
Angola's annual inflation rate eased to 9.04 percent in July from 9.19 percent in June, continuing the stable trend with inflation between 9 and 10 percent in the last 12 months.
www.CentralBankNews.info
Central Bank News Link List - Aug 30, 2013: Emerging markets plan joint offshore FX intervention-Indian official
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.
- Emerging markets plan joint offshore FX intervention-Indian official (Reuters)
- ECB staff union calls for publication of GC minutes (MNI)
- Colombian central bank seen keeping rates steady for fifth-straight month (WSJ)
- Brazil's strong GDP data doesn't change monetary policy-source (Reuters)
- Fed's Lacker says central banks' future hinges on role as lender (Bloomberg)
- Fed staff violated bank's rules in early minutes release (WSJ)
- RBI governor concedes missteps (WSJ)
- Czech central banker: monetary policy probably too tight (Reuters)
- BoC seen hiking rates in fourth quarter of 2014: poll (Reuters)
- Curious timing for Fed self-doubt on monetary policy (Reuters MacroScope)
- Brazil central bank aims for simple after communication fumbles (Reuters)
- www.CentralBankNews.info
Zambia holds rate, notes higher China copper imports
Zambia's central bank held its policy rate steady at 9.75 percent, saying it would continue to maintain a "relatively tight" monetary policy in order to moderate inflationary pressures.
The Bank of Zambia, which raised its rate in June and July by a total of 50 basis points, said it had taken note of the continued presence of inflationary pressures that were largely due to the anticipated public sector wage rises. This is in addition to pressure that may rise from higher food prices due to continued high demand in the region.
Continued weak global growth may lead to lower demand for Zambia's exports though the central bank's policy committee said it had noted the slight increase in the price of copper on the back of an improvement in Chinese imports in recent weeks.
On the other hand, the central bank said inflationary pressures may moderate in the coming month due to the recent stability in the kwacha's exchange rate.
In August, Zambia's inflation rate eased slightly to 7.1 percent from 7.3 percent in the previous two months. In May the inflation rate jumped to 7 percent from 6.5 percent and has remained above 7 percent since then. The central bank targets inflation of 6 percent by the end of the year.
Like many other countries, Zambia's kwacha depreciated in May through early July. Since July 10 the kwacha has bounced back, rising almost 3 percent, trading at 5.38 kwacha to the U.S. dollar today.
www.CentralBankNews.info
The Bank of Zambia, which raised its rate in June and July by a total of 50 basis points, said it had taken note of the continued presence of inflationary pressures that were largely due to the anticipated public sector wage rises. This is in addition to pressure that may rise from higher food prices due to continued high demand in the region.
Continued weak global growth may lead to lower demand for Zambia's exports though the central bank's policy committee said it had noted the slight increase in the price of copper on the back of an improvement in Chinese imports in recent weeks.
On the other hand, the central bank said inflationary pressures may moderate in the coming month due to the recent stability in the kwacha's exchange rate.
In August, Zambia's inflation rate eased slightly to 7.1 percent from 7.3 percent in the previous two months. In May the inflation rate jumped to 7 percent from 6.5 percent and has remained above 7 percent since then. The central bank targets inflation of 6 percent by the end of the year.
Like many other countries, Zambia's kwacha depreciated in May through early July. Since July 10 the kwacha has bounced back, rising almost 3 percent, trading at 5.38 kwacha to the U.S. dollar today.
www.CentralBankNews.info
Thursday, August 29, 2013
Moldova holds rate steady at 3.5%
Moldova's central bank held its basic rate steady at 3.5 percent for the fifth month in a row, along with its other main rates, the rate on overnight deposits and the overnight lending rate, at 0.5 percent and 6.5 percent, respectively.
The National Bank of Moldova last cut its rate in April by 100 basis points.
Last month the central bank said the main risks is was facing were from deflation from Europe, Russia and international food prices while inflationary pressures could arise from a recovery in domestic demand and higher oil prices.
Moldova's inflation rate eased to 4.3 percent in July from 5.5 percent in June, in line with the bank's forecast for this year. In 2014 inflation is forecast at 3.8 percent, below the bank's 5.0 percent target.
Moldova's Gross Domestic Product expanded by an annual 3.5 percent in the first quarter, up from a 2.5 percent contraction in the previous quarter.
www.CentralBankNews.info
The National Bank of Moldova last cut its rate in April by 100 basis points.
Last month the central bank said the main risks is was facing were from deflation from Europe, Russia and international food prices while inflationary pressures could arise from a recovery in domestic demand and higher oil prices.
Moldova's inflation rate eased to 4.3 percent in July from 5.5 percent in June, in line with the bank's forecast for this year. In 2014 inflation is forecast at 3.8 percent, below the bank's 5.0 percent target.
Moldova's Gross Domestic Product expanded by an annual 3.5 percent in the first quarter, up from a 2.5 percent contraction in the previous quarter.
www.CentralBankNews.info
Fiji holds rate, comfortable outlook for inflation, reserves
Fiji's central bank kept its Overnight Policy Rate (OPR) steady at 0.5 percent, saying the current accommodative policy stance remains appropriate to support domestic growth given the "comfortable outlook for foreign reserves and inflation."
The Reserve Bank of Fiji, which has maintained its rate since December 2011, said Fiji's economy had shown great resilience so far and was forecast to expand by 3.2 percent this year on the back of strong domestic consumption and investment.
Earlier this month, the central bank revised upward its 2013 growth forecast to 3.2 percent from 2.7 percent in the national budget, compared with 2012's estimated 2.2 percent growth. If the forecast rate is achieved, it will be the strongest growth rate since 2004.
Growth in 2014 and 2015 is forecast at 2.5 percent and 2.4 percent, respectively.
The central bank's mid-year survey showed improvements in business and investor confidence and indicates continued robust economic activity well into next year while the financial system remains "awash with liquidity" and lending rates are low, providing further impetus for economic activity.
The central bank noted that its twin objectives remained intact, with July's inflation rate rising to 1.9 percent in July from 1.5 percent in June, and foreign reserves of around $1.834 billion, sufficient for 5.1 months of imports.
www.CentralBankNews.info
The Reserve Bank of Fiji, which has maintained its rate since December 2011, said Fiji's economy had shown great resilience so far and was forecast to expand by 3.2 percent this year on the back of strong domestic consumption and investment.
Earlier this month, the central bank revised upward its 2013 growth forecast to 3.2 percent from 2.7 percent in the national budget, compared with 2012's estimated 2.2 percent growth. If the forecast rate is achieved, it will be the strongest growth rate since 2004.
Growth in 2014 and 2015 is forecast at 2.5 percent and 2.4 percent, respectively.
The central bank's mid-year survey showed improvements in business and investor confidence and indicates continued robust economic activity well into next year while the financial system remains "awash with liquidity" and lending rates are low, providing further impetus for economic activity.
The central bank noted that its twin objectives remained intact, with July's inflation rate rising to 1.9 percent in July from 1.5 percent in June, and foreign reserves of around $1.834 billion, sufficient for 5.1 months of imports.
www.CentralBankNews.info
FSP issues shadow banking rules on securities, regulation
Global plans to strengthen the regulatory oversight of shadow banking are nearing completion as the Financial Stability Board (FSB) released two new policy frameworks covering securities lending and supervision.
The latest proposals are part of the international community’s efforts since the global financial crises to tackle the threat from shadow banking, the vast and largely unregulated world of hedge funds, money market funds and investment vehicles.
The financial crises revealed that shadow banking - roughly half the size of the regulated banking sector - posed a severe threat to financial stability, not only because of its size and global reach but also because it is part of a complex chain of financial transactions with banks and insurance companies.
“ Like banks, a leveraged and maturity-transforming shadow banking system can be vulnerable to “runs” and create contagion risk, thereby amplifying systemic risk,” said the FSB, the international body that monitors and coordinates global financial regulation on behalf of the Group of 20 (G20) leading economies.
Over the last two years, the FSB has been developing a string of policies aimed at reducing the risk from shadow banking by creating a monitoring framework to track the sector and strengthen the oversight and regulation of the shadow banking system.
"Most of these policy measures are now finalised and will be adopted by FSB members in an internationally-coordinated manner," said the FSB, adding that some of its latest proposals that cover minimum haircuts for securities financing transactions would be refined further to avoid any unintended consequences for the financial system.
The challenge for
the FSP, along with the Basel Committee on Banking Supervision (BCBS) and the
International Organization of Securities Commissions (IOSCO), has been to devise
rules that limit the risks yet retain the benefits and don’t stymie future
financial innovation.
"When implemented, this integrated set of policies should mitigate financial stability risks emanating from shadow banking. They should also limit the incentives of risky activities to move to the unregulated sector as tighter regulations on banks and other traditional market participants come into effect," the FSB said.
While
off-balance sheet financial entities and various forms of securitization have
been around for centuries, the current form of shadow banking first took off in
the last decades as banks exploited regulatory gaps and used regulatory
arbitrage to minimize cost.
Central Bank News Link List - Aug 29, 2013: India rupee bounces from record low, PM may address parliament
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.
- Central banks assuring markets with low rates guidance: ECB's Nowotny (Reuters)
- Kazakhstan pegs tenge to fx basket, dilutes dollar focus (Reuters)
- RBI chief says policy not to resort to capital controls (Reuters)
- Banks in Spain, France and Italy sell govt bonds in July-ECB (Reuters)
- Euro zone, IMF to press Greece foreign agency to sell assets (Reuters)
- More trouble in hunt for new Israeli central bank chief (WSJ)
- Turkish central bank governor sets himself credibility test (Reuters)
- Bank of Thailand eyes sovereign wealth fund (Bangkok Post)
- Political crises weakens Tunisian economy-central bank governor (Allafrica)
- ECB to introduce female quota for middle management level (DW)
- Chile manufacturing beats forecasts as wine output rises (Reuters)
- ECB's Mersch says timetable for new bank watchdog challenging (Reuters)
- Dominican republic cenbank adopts currency control measures (Dominican Today)
- www.CentralBankNews.info
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