Trinidad and Tobago's central bank raised its benchmark repurchase rate by another 25 basis points to 3.50 percent, its third increase in a row, and said it was "prepared to further position its monetary policy stance to address any challenges that may arise from unanticipated changes in global energy markets."
The Central Bank of Trinidad and Tobago, which has raised its rate by 75 basis points since September, added that it had embarked on intensified open market operations to "aggressively" remove excess liquidity from the banking system in coming months and larger and more frequent foreign exchange interventions would also indirectly help absorb some excess liquidity.
The main factors behind the central bank's rate rise was the U.S. Federal Reserve's guidance about its future policy path - which signaled a likely rise in the U.S. fed funds rate to around 1 percent by end-2015 - along with signs that Trinidad and Tobago's economy seems to be approaching full capacity and the positive growth outlook for the country's non-energy sector, the bank said.
The anticipated U.S. rate rise is expected to make U.S. dollar assets even more attractive than TT dollar assets, prompting further capital outflows in search of higher yields, the bank said.
Trinidad and Tobago's economy appears to be approaching full capacity judging from a number of indicators, including the fact that headline inflation is creeping up, hitting 8.5 percent in December from 5.50 percent at the start of the year.
Earlier this week the central bank said it had sold US$400 million to the banking system during January, the largest foreign exchange intervention in a single month to date, surpassing November 2010 when the bank sold $315 million when there was also unsatisfied demand for foreign exchange.
Friday, January 30, 2015
Central Bank News Link List - Jan 30, 2015: Bullard warns of asset bubble if Fed keeps rates too low
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.
- Bullard warns of asset bubble if Fed keeps rates too low (Bloomberg)
- Brazil’s central bank opens door to smaller rate hike in March (Reuters)
- Fed’s Fisher: stronger dollar good for U.S. jobs (Reuters)
- Georgian central bank to tighten monetary policy next week (Reuters)
- Velarde opens door to Peru rate cut as GDP rebound falters (Bloomberg)
- BOJ set to watch and wait as Abe team urges caution on fresh easing (Reuters)
- Turkey central bank says envisaged rate cut cycle is cautious (Bloomberg)
- Q&A with Plosser of Fed: Raise rates sooner rather than later (NYT)
- World investors’ cash holdings highest since 2012: Reuters poll
- Sweden’s unconventional monetary policy would be no bazooka (Reuters)
- Norwegian krone strengthens on central bank buying plan (WSJ)
- Philippine central bank may tweak policy settings (Xinhua)
- Fed’s interest rate floor may leak no more (WSJ)
- Gross: Fed will raise rates this year to save capitalism (Bloomberg)
- Banks say no room to cut lending rates, thwarting RBI easing (Reuters)
- Vietnam State Bank calls for lending rates to be lowered (Viet Nam News)
- Egypt central bank widens band in which banks can trade dollars (Reuters)
- Peru central bank further tightens limits on currency derivatives (Reuters)
- Indonesia needs strict monetary policy: Bank Indonesia (Antara News)
- Kenya: New central bank benchmark could bring down rates (Kandie/allAfrica)
- Czech central bank’s Tomsik to miss Feb 5 policy meeting (Reuters)
- Bulgaria nominates new central bank deputy after Corpbank crises (Reuters)
- India’s Rajan ranges far from monetary policy to shape debates (Bloomberg)
- Romania’s central bank questions help for Swiss franc debtors (Reuters)
Colombia holds rate, temporary inflation rise from peso
Colombia's central bank maintained its benchmark intervention rate at 4.5 percent and said it hopes there will only be a temporary rise in inflation from the devaluation of the peso, which will stimulate exports and import-competing businesses and moderate the negative impact on government finances.
The Central Bank of Colombia, which raised its rate by 125 basis points from April through August 2014, added that domestic demand continues to show improving momentum in the context of full capacity utilization while there is some uncertainty about the impact of the declining terms of trade from lower oil prices on aggregate demand.
As an oil exporter, the over 50-percent drop in crude oil prices is having an adverse effect on Colombia's trade balance and public finances, but the central bank said this will partly be offset by the depreciation of the peso and a positive impact on global growth.
The peso started depreciating sharply in late July 2014 and fell 25 percent to 2,459 to the U.S. dollar earlier this month before stabilizing in recent weeks. Today it was trading at 2,451 to the dollar.
After accelerating all year, Colombia's inflation rate stabilized in December, rising to only 3.66 percent from 3.65 percent in November. The central bank targets inflation at a midpoint of 3.0 percent within a tolerance range of plus/minus 1 percentage point.
Colombia's Gross Domestic Product rose by 0.6 percent in the third quarter after contracting by 0.1 percent in the second quarter for annual growth of 4.2 percent, down from 4.3 percent in the second quarter.
Recent data suggest that domestic demand continued to expand in the fourth quarter with growth estimated at 4.0 percent. For 2014 the economy is estimated to grow between 4.5 and 5.0 percent, with the most likely figure of 4.8 percent, above expectations.
The Central Bank of Colombia, which raised its rate by 125 basis points from April through August 2014, added that domestic demand continues to show improving momentum in the context of full capacity utilization while there is some uncertainty about the impact of the declining terms of trade from lower oil prices on aggregate demand.
As an oil exporter, the over 50-percent drop in crude oil prices is having an adverse effect on Colombia's trade balance and public finances, but the central bank said this will partly be offset by the depreciation of the peso and a positive impact on global growth.
The peso started depreciating sharply in late July 2014 and fell 25 percent to 2,459 to the U.S. dollar earlier this month before stabilizing in recent weeks. Today it was trading at 2,451 to the dollar.
After accelerating all year, Colombia's inflation rate stabilized in December, rising to only 3.66 percent from 3.65 percent in November. The central bank targets inflation at a midpoint of 3.0 percent within a tolerance range of plus/minus 1 percentage point.
Colombia's Gross Domestic Product rose by 0.6 percent in the third quarter after contracting by 0.1 percent in the second quarter for annual growth of 4.2 percent, down from 4.3 percent in the second quarter.
Recent data suggest that domestic demand continued to expand in the fourth quarter with growth estimated at 4.0 percent. For 2014 the economy is estimated to grow between 4.5 and 5.0 percent, with the most likely figure of 4.8 percent, above expectations.
Denmark suspends bond issuance to limit FX inflow
The Danish government has suspended the issuance of domestic and foreign bonds, saying this should help reduce interest rate spreads on longer-dated bonds and limit the inflow of foreign exchange, easing some of the upward pressure on the crown currency.
The Danish central bank, which on Thursday cut its deposit rate for the third time in 10 days to make it less attractive for investors to hold crowns, said rate cuts and foreign exchange purchases had widened the negative spread between money market rates in Denmark and the euro area.
However, the spread for government bonds had remained positive for longer maturity bonds.
On Jan. 29 Danmarks Nationalbank cut its deposit rate by 15 basis points to minus 0.50 percent, following cuts on Jan. 22 and Jan. 19. The lending rate was cut on Jan. 19 to 0.05 percent.
The main objective of Danmarks Nationalbank is to defend the exchange rate of the crown to the euro as a way to control inflation. It uses interest rates to make it more or less attractive to hold crowns and has a central exchange target of 7.46038 crowns to the euro, within a tolerance band of plus/minus 2.25 percent, or a rate of 7.29252 to 7.62824.
The crown strengthened slightly to 7.444221 per euro from 7.44431 prior to the news.
The Danish central bank, which on Thursday cut its deposit rate for the third time in 10 days to make it less attractive for investors to hold crowns, said rate cuts and foreign exchange purchases had widened the negative spread between money market rates in Denmark and the euro area.
However, the spread for government bonds had remained positive for longer maturity bonds.
On Jan. 29 Danmarks Nationalbank cut its deposit rate by 15 basis points to minus 0.50 percent, following cuts on Jan. 22 and Jan. 19. The lending rate was cut on Jan. 19 to 0.05 percent.
The main objective of Danmarks Nationalbank is to defend the exchange rate of the crown to the euro as a way to control inflation. It uses interest rates to make it more or less attractive to hold crowns and has a central exchange target of 7.46038 crowns to the euro, within a tolerance band of plus/minus 2.25 percent, or a rate of 7.29252 to 7.62824.
The crown strengthened slightly to 7.444221 per euro from 7.44431 prior to the news.
Danmarks Nationalbank issued the following statement:
Russia cuts rate 200 bps to avoid further hit to growth
Russia's central bank slashed its key policy rate by 200 basis points to 15.0 percent to avert "the sizable decline in economic activity against the background of negative external factors."
The Bank of Russia said its most recent rate rise - it raised rates by a total of 1,150 basis points last year including 650 points in December - had helped stabilize inflation expectations and the value of the ruble, describing the current "surge of inflation" as temporary and driven by an adjustment to the past depreciation of the ruble.
Russia's ruble has tumbled 53 percent against the U.S. dollar since the start of 2014, with most of the decline in the second half of last year as its conflict with Ukraine intensified, Western sanctions were imposed and crude oil prices tumbled.
This year the ruble has declined over 15 percent but gained slightly to around 70.5 to the dollar from 71.30 in response to the central bank's rate cut.
Consumer price inflation accelerated to 13.1 percent as of January 26 from 11.4 percent in December and 6.1 percent in January 2014.
Inflation is expected to peak in the second quarter but then slowly ease in response to economic weakness, falling money supply and lending growth, dropping below 10 percent by January 2016.
Russia's economy has been hit hard by the combination of sanctions and lower oil prices - oil accounts for over half of Russia's exports and some 15 percent of economic output - and the central bank estimates Gross Domestic Product will shrink by 3.2 percent in the first half of 2015 compared with the same period in 2014 as Russian borrowers are cut off from foreign financial markets, low oil prices slow investments, wages and consumer demand decline.
In the third quarter of last year GDP expanded by only 0.4 percent from the second quarter for annual growth of 0.7 percent, down from 0.8 percent, and the central bank estimated growth for the full year of 0.6 percent.
A pick-up in growth in December was largely due to temporary factors, such as growing demand for durable goods amid higher inflation expectations, the central bank said.
The Bank of Russia said its most recent rate rise - it raised rates by a total of 1,150 basis points last year including 650 points in December - had helped stabilize inflation expectations and the value of the ruble, describing the current "surge of inflation" as temporary and driven by an adjustment to the past depreciation of the ruble.
Russia's ruble has tumbled 53 percent against the U.S. dollar since the start of 2014, with most of the decline in the second half of last year as its conflict with Ukraine intensified, Western sanctions were imposed and crude oil prices tumbled.
This year the ruble has declined over 15 percent but gained slightly to around 70.5 to the dollar from 71.30 in response to the central bank's rate cut.
Consumer price inflation accelerated to 13.1 percent as of January 26 from 11.4 percent in December and 6.1 percent in January 2014.
Inflation is expected to peak in the second quarter but then slowly ease in response to economic weakness, falling money supply and lending growth, dropping below 10 percent by January 2016.
Russia's economy has been hit hard by the combination of sanctions and lower oil prices - oil accounts for over half of Russia's exports and some 15 percent of economic output - and the central bank estimates Gross Domestic Product will shrink by 3.2 percent in the first half of 2015 compared with the same period in 2014 as Russian borrowers are cut off from foreign financial markets, low oil prices slow investments, wages and consumer demand decline.
In the third quarter of last year GDP expanded by only 0.4 percent from the second quarter for annual growth of 0.7 percent, down from 0.8 percent, and the central bank estimated growth for the full year of 0.6 percent.
A pick-up in growth in December was largely due to temporary factors, such as growing demand for durable goods amid higher inflation expectations, the central bank said.
Thursday, January 29, 2015
Bangladesh holds rate, targets 6.5% inflation mid-2015
The central bank of Bangladesh held its benchmark repurchase rate steady at 7.25 percent, along with the reverse repo at 5.25 percent, and urged commercial banks to come up with ways to reduce their lending rates which have not come down along with inflation.
The Bangladesh Bank, which last changed its rate in February 2013 when it cut the repo rate by 50 basis points, said inflation has dropped by almost 5 percentage points since the end of 2011 but the average lending rate has only dropped by 1 percentage point, "empowering the banks to earn higher real rates of interest and thus making investment more expensive than before."
In its monetary policy statement for January-June 2015, the central bank appealed to banks "to lend only to creditworthy clients who invest their funds for productive purposes and repay the installments regularly."
While the government of Bangladesh has announced an inflation target of 5 percent by 2017, the central bank said it will strive to keep inflation at a moderate level that still ensure sufficient credit growth to stimulate growth, and set an inflation target of 6.5 percent to be achieved by June 2015.
This will require limiting reserve money growth to 15.9 percent and broad money to 16.5 percent by June 2015. A ceiling for private sector credit growth of 15.5 percent is sufficient to accommodate any substantial rise in investment and trade finance over the next six months.
Bangladesh's consumer price inflation fell to a 2014-low of 6.11 percent in December from 6.21 percent in November, well down from peaks close to 12 percent in 2011.
The Bangladesh Bank, which last changed its rate in February 2013 when it cut the repo rate by 50 basis points, said inflation has dropped by almost 5 percentage points since the end of 2011 but the average lending rate has only dropped by 1 percentage point, "empowering the banks to earn higher real rates of interest and thus making investment more expensive than before."
In its monetary policy statement for January-June 2015, the central bank appealed to banks "to lend only to creditworthy clients who invest their funds for productive purposes and repay the installments regularly."
While the government of Bangladesh has announced an inflation target of 5 percent by 2017, the central bank said it will strive to keep inflation at a moderate level that still ensure sufficient credit growth to stimulate growth, and set an inflation target of 6.5 percent to be achieved by June 2015.
This will require limiting reserve money growth to 15.9 percent and broad money to 16.5 percent by June 2015. A ceiling for private sector credit growth of 15.5 percent is sufficient to accommodate any substantial rise in investment and trade finance over the next six months.
Bangladesh's consumer price inflation fell to a 2014-low of 6.11 percent in December from 6.21 percent in November, well down from peaks close to 12 percent in 2011.
Fiji holds rate, low oil to dampen effect of strong demand
Fiji's central bank maintained its benchmark Overnight Policy Rate (OPR) at 0.5 percent, saying its twin objectives for inflation and foreign reserves remain intact, despite strong domestic demand.
The Reserve Bank of Fiji (RBF), which has held its rate steady since November 2011, said consumption and investment activity remain buoyant, with credit continuing to expand and planned expansion of fiscal policy supporting demand further in 2015.
Inflation was only 0.1 percent in December, up from minus 0.2 percent in November, largely due to lower oil prices and is expected to remain in a comfortable range in 2015 as pressure from rising demand is likely to be dampened by falling oil and food prices.
Despite strong imports, the balance of payments continues to be supported by record tourism and remittance inflows.
As of Jan. 29, Fiji's foreign reserves were around 1.842.5 billion, enough to cover 4.6 months of imports and is forecast to remain adequate throughout this year.
The Reserve Bank of Fiji issued the following statement:
The Reserve Bank of Fiji (RBF), which has held its rate steady since November 2011, said consumption and investment activity remain buoyant, with credit continuing to expand and planned expansion of fiscal policy supporting demand further in 2015.
Inflation was only 0.1 percent in December, up from minus 0.2 percent in November, largely due to lower oil prices and is expected to remain in a comfortable range in 2015 as pressure from rising demand is likely to be dampened by falling oil and food prices.
Despite strong imports, the balance of payments continues to be supported by record tourism and remittance inflows.
As of Jan. 29, Fiji's foreign reserves were around 1.842.5 billion, enough to cover 4.6 months of imports and is forecast to remain adequate throughout this year.
The Reserve Bank of Fiji issued the following statement:
Mexico holds rate, eye on peso's impact on inflation
Mexico's central bank left its benchmark overnight rate steady at 3.0 percent, as expected, underscoring that it "will remain attentive" to all factors that determine inflation, in particular the difference between U.S. and Mexican monetary policy, the exchange rate of the peso and its impact on inflation and the degree of slack in the country's economy.
The Bank of Mexico, which cut its rate by cut by 50 basis points in June 2014, said inflation expectations have continued to decline, reflecting lower oil prices, a widespread appreciation of the U.S. dollar and a lack of pressure from labor costs.
Mexico's consumer price inflation eased to 4.08 percent in December and the central bank confirmed its forecast for inflation to reach its 3.0 percent target by mid-2015 and end the year slightly below that level. Core inflation is expected to be below 3 percent most of the year.
International financial markets has recently become more volatile, with many emerging market currencies depreciating. This includes the peso, which has been particularly sensitive to lower oil prices due to investors' concern over the impact on tax revenue and the current account.
So far, however, the central bank said movements in the peso's exchange rate have been relatively orderly although volatility may rise at the prospect of a U.S. rate increase in 2015, underscoring the importance of a strengthened macroeconomic framework.
The peso started falling sharply in November last year but bounced back slightly in January. The peso was quoted at 14.79 to the U.S. dollar today, slightly up from the start of the year.
The Bank of Mexico, which cut its rate by cut by 50 basis points in June 2014, said inflation expectations have continued to decline, reflecting lower oil prices, a widespread appreciation of the U.S. dollar and a lack of pressure from labor costs.
Mexico's consumer price inflation eased to 4.08 percent in December and the central bank confirmed its forecast for inflation to reach its 3.0 percent target by mid-2015 and end the year slightly below that level. Core inflation is expected to be below 3 percent most of the year.
International financial markets has recently become more volatile, with many emerging market currencies depreciating. This includes the peso, which has been particularly sensitive to lower oil prices due to investors' concern over the impact on tax revenue and the current account.
So far, however, the central bank said movements in the peso's exchange rate have been relatively orderly although volatility may rise at the prospect of a U.S. rate increase in 2015, underscoring the importance of a strengthened macroeconomic framework.
The peso started falling sharply in November last year but bounced back slightly in January. The peso was quoted at 14.79 to the U.S. dollar today, slightly up from the start of the year.
Denmark cuts deposit rate another 15 bps to -0.50%
Denmark's central bank continued its battle to reduce the attractiveness of holding Danish crowns, cutting its rate on certificates of deposit by a further 15 basis points to minus 0.50 percent, its third rate cut in less than two weeks.
Danmarks Nationalbank said in a brief statement that the rate cut followed purchase of foreign exchange in the market, indicating that it has been intervening in recent days to hold down the value of the crown against the euro.
The Danish central bank left its lending rate at 0.05 percent - it was last cut by 15 basis points on Jan. 19 following the Swiss National Bank's (SNB) scrapping of its upper limit of the franc to the euro. It also left the discount rate and current account rates at zero percent.
The SNB's surprise abandoning of its peg to the euro triggered speculation that Denmark would be next in line to alter its exchange rate policy, driving up the crown's exchange rate. During the week following the SNB's move on Jan. 15, Denmark sold almost $10 billion to hold down its crown.
On Jan. 22 the Danish central bank again cut the deposit rate by 15 basis points to minus 0.35 percent, days after the central bank and the country's economy minister insisted that the policy of a fixed exchange rate to the depreciating euro would be maintained.
The main objective of Danmarks Nationalbank since 1982 is to defend the exchange rate of the crown to the euro as a way to control inflation. It uses interest rates to make it more or less attractive to hold crowns and has a central exchange target of 7.46038 crowns to the euro, within a tolerance band of plus/minus 2.25 percent, or a rate of 7.29252 to 7.62824.
Today the crown was quoted at 7.44255 to the euro.
South Africa holds rate, wants sustained drop in inflation
South Africa's central bank maintained its benchmark repurchase rate at 5.75 percent, disappointing some investors that had looked for a cut, saying "the bar for further accommodation remains high and would require a sustained decline in the inflation rate and inflation expectations."
The South African Reserve Bank (SARB) said the lower path of inflation and the continued weak economy had provided it with "some room to pause" in its process of tightening monetary policy but stressed even a moderate rise in oil prices would quickly reverse the benefits of lower inflation.
SARB revised downward its forecast for consumer price inflation to average 3.8 percent in 2015, down from 6.1 percent in 2014 and below the previous forecast of 5.3 percent.
The low point is expected to be hit in the second quarter at 3.5 percent. In December 2014 the inflation rate fell to 5.3 percent, triggering expectations the central bank could cut rates.
But SARB sees oil prices rising over the next two years and the steep decline this year will produce a strong base effect in 2016, while the rand's exchange is also expected to depreciate.
For 2016 SARB sees average of 5.4 percent, down from its previous forecast of 5.5 percent.
The forecast for core inflation,which excludes food, petrol and electricity, was also revised down to average 5.5 percent in 2015 and 5.1 percent in 2016 compared with previous forecasts of 5.7 percent and 5.3 percent, respectively.
"While this downward revision is a welcome development, it is too early to assess whether or not this represents the start of a sustained downward trend," Lesetja Kganyago, SARB governor said.
"At these levels, expectations still remain uncomfortably close the to upper end of the target range," he added. SARB targets inflation of 3-6 percent.
The South African Reserve Bank (SARB) said the lower path of inflation and the continued weak economy had provided it with "some room to pause" in its process of tightening monetary policy but stressed even a moderate rise in oil prices would quickly reverse the benefits of lower inflation.
SARB revised downward its forecast for consumer price inflation to average 3.8 percent in 2015, down from 6.1 percent in 2014 and below the previous forecast of 5.3 percent.
The low point is expected to be hit in the second quarter at 3.5 percent. In December 2014 the inflation rate fell to 5.3 percent, triggering expectations the central bank could cut rates.
But SARB sees oil prices rising over the next two years and the steep decline this year will produce a strong base effect in 2016, while the rand's exchange is also expected to depreciate.
For 2016 SARB sees average of 5.4 percent, down from its previous forecast of 5.5 percent.
The forecast for core inflation,which excludes food, petrol and electricity, was also revised down to average 5.5 percent in 2015 and 5.1 percent in 2016 compared with previous forecasts of 5.7 percent and 5.3 percent, respectively.
"While this downward revision is a welcome development, it is too early to assess whether or not this represents the start of a sustained downward trend," Lesetja Kganyago, SARB governor said.
"At these levels, expectations still remain uncomfortably close the to upper end of the target range," he added. SARB targets inflation of 3-6 percent.
Wednesday, January 28, 2015
Albania cuts rate 25 bps, to keep stance some quarters
Albania's central bank cut its key interest rate by 25 basis points to 2.0 percent and said it would maintain easy monetary conditions "some quarters ahead" to achieve its inflation target.
But the Bank of Albania, which cut its rate by 75 basis points last year to stimulate the economy, signaled that it was unlikely to reduce rates further, saying today's "move provides adequate conditions for the return of inflation to the target and of the economy to equilibrium in the medium-term horizon."
Despite last year's rate cuts, liquidity injections into the banking system and an improvement in lek currency loans in the last two quarters of 2014, the central bank said the full transmission of its policy into the economy continued to suffer from businesses' "reluctance to engage in long-term investments and the banking system's risk aversion."
The bank's supervisory council also discussed its latest forecasts, saying there were no major changes, but in the short run the expected performance of economic growth had shifted upward whereas inflation has shifted downward.
In its baseline scenario, the central bank forecasts annual inflation ranging from 1.2 to 3.8 percent in the four quarters ahead, with inflation returning to the bank's 3.0 percent target medium term, helped by economic growth and the closure of the negative output gap.
Albania's inflation rate fell to 0.7 percent in December from 1.7 percent in November, mainly due to low food prices and continuing drop in oil prices against a backdrop of sluggish demand.
"The external environment of the economy exerted disinflationary pressures on the Albanian economy, a trend expected to persist in 2015 as well," the central bank said.
Albania's Gross Domestic Product expanded by an annual 3.3 percent in the third quarter of last year, up from 1.73 percent in the second quarter.
But the Bank of Albania, which cut its rate by 75 basis points last year to stimulate the economy, signaled that it was unlikely to reduce rates further, saying today's "move provides adequate conditions for the return of inflation to the target and of the economy to equilibrium in the medium-term horizon."
Despite last year's rate cuts, liquidity injections into the banking system and an improvement in lek currency loans in the last two quarters of 2014, the central bank said the full transmission of its policy into the economy continued to suffer from businesses' "reluctance to engage in long-term investments and the banking system's risk aversion."
The bank's supervisory council also discussed its latest forecasts, saying there were no major changes, but in the short run the expected performance of economic growth had shifted upward whereas inflation has shifted downward.
In its baseline scenario, the central bank forecasts annual inflation ranging from 1.2 to 3.8 percent in the four quarters ahead, with inflation returning to the bank's 3.0 percent target medium term, helped by economic growth and the closure of the negative output gap.
Albania's inflation rate fell to 0.7 percent in December from 1.7 percent in November, mainly due to low food prices and continuing drop in oil prices against a backdrop of sluggish demand.
"The external environment of the economy exerted disinflationary pressures on the Albanian economy, a trend expected to persist in 2015 as well," the central bank said.
Albania's Gross Domestic Product expanded by an annual 3.3 percent in the third quarter of last year, up from 1.73 percent in the second quarter.
New Zealand holds rate, data to determine rate cuts, rises
New Zealand's central bank maintained its benchmark Official Cash Rate ((CR) at 3.5 percent but adopted a neutral policy stance by saying that it "future interest rate adjustments, either up or down, will depend on the emerging flow of economic data."
The Reserve Bank of New Zealand (RBNZ), the first central bank in advanced economies to raise its rate last year, added that it expects to keep its rate on hold for some time.
In its previous statement from December, the RBNZ had maintained an tightening policy bias, saying further increases in the policy rate were expected to be required at a later stage. Economists had expected the RBNZ to maintain rates and adopt a more dovish outlook for rates.
The reasons for the RBNZ's more pessimistic view is based on a weaker than expected growth in its trading partners, fiscal consolidation, lower dairy prices, the risk of drought and the dampening impact of the high exchange rate of the New Zealand dollar, known as the kiwi.
The effect is that inflation is likely to be below the central bank's target band through this year, and could even turn negative "for a period" before its moves back toward 2 percent, but in a slower fashion that previously expected.
On the other hand, RBNZ Governor Graeme Wheeler acknowledged that lower oil prices, and thus fuel prices, "will increase households' purchasing power and lower the cost of doing business," while the housing market was showing signs of picking up, particularly in Auckland.
As in recent months, Wheeler said the exchange rate of the kiwi "remains unjustified" and unsustainable despite recent easing and he expects to "see a further significant depreciation."
The Reserve Bank of New Zealand (RBNZ), the first central bank in advanced economies to raise its rate last year, added that it expects to keep its rate on hold for some time.
In its previous statement from December, the RBNZ had maintained an tightening policy bias, saying further increases in the policy rate were expected to be required at a later stage. Economists had expected the RBNZ to maintain rates and adopt a more dovish outlook for rates.
The reasons for the RBNZ's more pessimistic view is based on a weaker than expected growth in its trading partners, fiscal consolidation, lower dairy prices, the risk of drought and the dampening impact of the high exchange rate of the New Zealand dollar, known as the kiwi.
The effect is that inflation is likely to be below the central bank's target band through this year, and could even turn negative "for a period" before its moves back toward 2 percent, but in a slower fashion that previously expected.
On the other hand, RBNZ Governor Graeme Wheeler acknowledged that lower oil prices, and thus fuel prices, "will increase households' purchasing power and lower the cost of doing business," while the housing market was showing signs of picking up, particularly in Auckland.
As in recent months, Wheeler said the exchange rate of the kiwi "remains unjustified" and unsustainable despite recent easing and he expects to "see a further significant depreciation."
Fed: US economy expanding at "solid pace," still patient
The Federal Reserve acknowledged the strengthening U.S. economy - describing it as "expanding at a solid pace" - but maintained its guidance that it "can be patient in beginning to normalize the stance of monetary policy" and even after employment and inflation approach levels that are consistent with its mandate, the policy rate may be kept below levels considered normal.
In December the Fed, the central bank of the United States, changed the wording of its guidance to the phrase that it would be "patient" in normalizing policy - shorthand for raising rates - from the previous phrase that it would maintain the current rate for "a considerable time" after the conclusion of quantitative easing last October.
Economists had expected the Fed to change the words it uses to describe the U.S. economy in light of the strong expansion seen in the second and third quarters, with quarterly growth rates of 4.6 percent and 5.0 percent, respectively.
Like other central banks, the Fed also acknowledged that the sharp drop in crude oil prices and energy prices, have "boosted household purchasing power," but this has also led to a decline in inflation to "further below" its long-run objective of 2.0 percent.
In contrast to its statement on Dec. 17, when the Fed said it expected inflation to rise gradually toward its target, it said today that inflation is expected to decline further in the near term before gradually rising toward 2 percent over the medium term as the labor market continues to improve and the transitory effects of lower energy prices dissipate.
Consumer price inflation dropped to 0.8 percent in December from 1.3 percent in November while core inflation, which excludes some volatile items, eased to 1.6 percent from 1.7 percent. In December the unemployment rate fell to 5.6 percent from 5.8 percent.
Unlike December, today's statement by the Fed's policy committee, the Federal Open Market Committee (FOMC), was agreed unanimously. In December Richard Fisher, Narayana Kocherlakota and Charles Plosser had voted against the statement.
The Fed has held its fed funds rate steady since December 2008 but is gradually moving toward its first rate rise, expected later this year, following the conclusion of asset purchases in October.
In December the Fed, the central bank of the United States, changed the wording of its guidance to the phrase that it would be "patient" in normalizing policy - shorthand for raising rates - from the previous phrase that it would maintain the current rate for "a considerable time" after the conclusion of quantitative easing last October.
Economists had expected the Fed to change the words it uses to describe the U.S. economy in light of the strong expansion seen in the second and third quarters, with quarterly growth rates of 4.6 percent and 5.0 percent, respectively.
Like other central banks, the Fed also acknowledged that the sharp drop in crude oil prices and energy prices, have "boosted household purchasing power," but this has also led to a decline in inflation to "further below" its long-run objective of 2.0 percent.
In contrast to its statement on Dec. 17, when the Fed said it expected inflation to rise gradually toward its target, it said today that inflation is expected to decline further in the near term before gradually rising toward 2 percent over the medium term as the labor market continues to improve and the transitory effects of lower energy prices dissipate.
Consumer price inflation dropped to 0.8 percent in December from 1.3 percent in November while core inflation, which excludes some volatile items, eased to 1.6 percent from 1.7 percent. In December the unemployment rate fell to 5.6 percent from 5.8 percent.
Unlike December, today's statement by the Fed's policy committee, the Federal Open Market Committee (FOMC), was agreed unanimously. In December Richard Fisher, Narayana Kocherlakota and Charles Plosser had voted against the statement.
The Fed has held its fed funds rate steady since December 2008 but is gradually moving toward its first rate rise, expected later this year, following the conclusion of asset purchases in October.
Thailand maintains rate but 2 of 7 vote for 25 bps cut
Thailand's central bank maintained its policy rate at 2.0 percent but two members of its seven-member monetary policy committee voted to cut the rate by 25 basis points, up from one member who voted to cut rates at the previous meeting in November.
The Bank of Thailand (BOT), which last cut its rate by 25 basis points in March 2014, said its committee members agreed that "monetary policy should stay accommodative to provide continued to support for the economy," adding that it was "ready to take appropriate actions as warranted," a clear signal of its concern over the risks to the global economy from a slow recovery in major trading partners, lingering political uncertainty and the possibility of higher volatility in global financial markets from the divergence in monetary policy among major central banks.
In November the BOT had not used the phrase of taking appropriate actions as warranted, but only referred to pursuing appropriate policy to support the economy, indicating an increased readiness to cut rates if economic prospects are threatened.
Last week Thailand's finance minister called on the central bank to cut rates to help the economy, adding that he was concerned the exchange rate of the baht could rise following the European Central Bank's (ECB) move to boost stimulus and thus hurt exports.
The five members that voted to maintain rates argued a steady rate could contain some of the risks from a prolonged period of low interest rates and increased global financial market volatility.
But the members that voted for a rate cut argued that monetary policy should play a greater role in boosting the economy in light of the higher global economic risks, a long lag in the implementation of fiscal stimulus and low inflation that will result in higher real interest rates.
The Bank of Thailand (BOT), which last cut its rate by 25 basis points in March 2014, said its committee members agreed that "monetary policy should stay accommodative to provide continued to support for the economy," adding that it was "ready to take appropriate actions as warranted," a clear signal of its concern over the risks to the global economy from a slow recovery in major trading partners, lingering political uncertainty and the possibility of higher volatility in global financial markets from the divergence in monetary policy among major central banks.
In November the BOT had not used the phrase of taking appropriate actions as warranted, but only referred to pursuing appropriate policy to support the economy, indicating an increased readiness to cut rates if economic prospects are threatened.
Last week Thailand's finance minister called on the central bank to cut rates to help the economy, adding that he was concerned the exchange rate of the baht could rise following the European Central Bank's (ECB) move to boost stimulus and thus hurt exports.
The five members that voted to maintain rates argued a steady rate could contain some of the risks from a prolonged period of low interest rates and increased global financial market volatility.
But the members that voted for a rate cut argued that monetary policy should play a greater role in boosting the economy in light of the higher global economic risks, a long lag in the implementation of fiscal stimulus and low inflation that will result in higher real interest rates.
Malaysia holds rate, assessing external developments
Malaysia's central bank maintained its Overnight Policy Rate (OPR) at 3.25 percent, as widely expected, saying it would "carefully assess the external developments and their implications on the Malaysian economy" and "monitor the risks of destabilizing financial imbalances."
Bank Negara Malaysia (BNM), which raised its rate by 25 basis points in July 2014, added that the prospects for the country's economy remain on a "steady growth path," a phrase the central bank often uses to describe economic activity.
However, the BNM's reference to external developments clearly indicates growing concern over the downside risks to the global economic outlook along with increased volatility in international financial markets and heightened uncertainty with regard to global growth prospects and the decline in commodity prices.
Nevertheless, the BNM expects the global economy to benefit from lower oil prices.
In its December statement, the BNM pointed to the outlook for domestic growth and inflation along with the risks of destabilizing financial imbalances.
The BNM still sees domestic demand as the key driver of economic growth due to a steady rise in income and employment along with the boost to disposable income from lower oil prices.
Although the central bank expects its exports to be affected by lower commodity prices, it sees an improvement in the export of manufactured products.
Bank Negara Malaysia (BNM), which raised its rate by 25 basis points in July 2014, added that the prospects for the country's economy remain on a "steady growth path," a phrase the central bank often uses to describe economic activity.
However, the BNM's reference to external developments clearly indicates growing concern over the downside risks to the global economic outlook along with increased volatility in international financial markets and heightened uncertainty with regard to global growth prospects and the decline in commodity prices.
Nevertheless, the BNM expects the global economy to benefit from lower oil prices.
In its December statement, the BNM pointed to the outlook for domestic growth and inflation along with the risks of destabilizing financial imbalances.
The BNM still sees domestic demand as the key driver of economic growth due to a steady rise in income and employment along with the boost to disposable income from lower oil prices.
Although the central bank expects its exports to be affected by lower commodity prices, it sees an improvement in the export of manufactured products.
Tuesday, January 27, 2015
Central Bank News Link List - Jan 28, 2015: Singapore central bank eases 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.
- Singapore central bank eases monetary policy (Bloomberg)
- MAS monetary policy statement (Monetary Authority of Singapore)
Hungary maintains rate, no systemic risk from CHF rise
Hungary's central bank maintained its base rate at 2.10 percent, as expected, and confirmed its guidance that it would keep the "current loose monetary conditions for an extended period."
The National Bank of Hungary (MNB), which ended a two-year easing cycle in July after cutting its rate by 490 basis points, said the continued fall in the prices of oil and processed food have led to historically-low inflation dynamics but domestic demand-side disinflationary pressure are likely to weaken as economic activity gathers pace so inflation's likely to reach levels around 3 percent in the latter half of the bank's forecast period.
Hungary's economy is likely to continue to expand due to improving domestic demand, but capacity utilization is expected to improve only gradually due to weak external demand so inflationary pressures are likely to remain moderate for an extended period.
While repeating its recent guidance, the MNB appeared to signal that it may be considering cutting rates, saying recent data had shifted towards "the alternative scenario implying looser monetary policy" from its December 2014 inflation report.
In that report, the MNB's council identified three alternative scenarios, each having significant impact on monetary policy.
The first alternative assumes lower oil prices over the long term, which supports domestic growth and implies easier monetary policy due to downside inflation risks. A second alternative that assumes weaker-than-projected external demand, which also suggests looser monetary policy than in the baseline scenario. A third scenario includes intensified geopolitical tensions that result in a weaker exchange rate, which leads to inflation pressures and thus implies tighter monetary policy.
The National Bank of Hungary (MNB), which ended a two-year easing cycle in July after cutting its rate by 490 basis points, said the continued fall in the prices of oil and processed food have led to historically-low inflation dynamics but domestic demand-side disinflationary pressure are likely to weaken as economic activity gathers pace so inflation's likely to reach levels around 3 percent in the latter half of the bank's forecast period.
Hungary's economy is likely to continue to expand due to improving domestic demand, but capacity utilization is expected to improve only gradually due to weak external demand so inflationary pressures are likely to remain moderate for an extended period.
While repeating its recent guidance, the MNB appeared to signal that it may be considering cutting rates, saying recent data had shifted towards "the alternative scenario implying looser monetary policy" from its December 2014 inflation report.
In that report, the MNB's council identified three alternative scenarios, each having significant impact on monetary policy.
The first alternative assumes lower oil prices over the long term, which supports domestic growth and implies easier monetary policy due to downside inflation risks. A second alternative that assumes weaker-than-projected external demand, which also suggests looser monetary policy than in the baseline scenario. A third scenario includes intensified geopolitical tensions that result in a weaker exchange rate, which leads to inflation pressures and thus implies tighter monetary policy.
Monday, January 26, 2015
Kyrgyzstan raises rate 50 bps in effort to lower inflation
The central bank of the Kyrgyz Republic raised its policy rate by a further 50 basis points to 11 percent to curb inflationary pressures from the deprecation of its som currency and said it would "take appropriate measures" to reduce inflation to its target.
The National Bank of the Kyrgyz Republic, which targets inflation of 5-7 percent in the medium term, has now raised its policy rate by 500 basis points since July 2014.
The som began to depreciate in August last year and was trading at 59.9 to the U.S. dollar today, down 1.7 percent this year and almost 14 percent since August 1.
Kyrgyzstan's inflation rate accelerated to 10.5 percent in December from 10.2 percent in November and the central bank said preliminary data showed inflation of 10.4 percent as of mid-January.
The economy of the Kyrgyz Republic, bordering Kazakhstan to the north and China to the east, continues to slow, the central bank said, adding that Gross Domestic Product expanded by 3.6 percent in 2014, down from 10.5 percent in 2013.
This is below the 4.1 percent projected by the International Monetary Fund in July, with the country's economy hit by Russia's economic crises.
The National Bank of the Kyrgyz Republic issued the following statement:
The National Bank of the Kyrgyz Republic, which targets inflation of 5-7 percent in the medium term, has now raised its policy rate by 500 basis points since July 2014.
The som began to depreciate in August last year and was trading at 59.9 to the U.S. dollar today, down 1.7 percent this year and almost 14 percent since August 1.
Kyrgyzstan's inflation rate accelerated to 10.5 percent in December from 10.2 percent in November and the central bank said preliminary data showed inflation of 10.4 percent as of mid-January.
The economy of the Kyrgyz Republic, bordering Kazakhstan to the north and China to the east, continues to slow, the central bank said, adding that Gross Domestic Product expanded by 3.6 percent in 2014, down from 10.5 percent in 2013.
This is below the 4.1 percent projected by the International Monetary Fund in July, with the country's economy hit by Russia's economic crises.
The National Bank of the Kyrgyz Republic issued the following statement:
Central Bank News Link List - Jan 27, 2015: Fed seen raising rates midyear even with low inflation
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.
- Fed seen raising rates midyear even with low inflation (Bloomberg)
- Turkish central bank signals early policy meeting, possible rate cut (Reuters)
- Swiss National Bank says stands ready to intervene in FX market (Reuters)
- Interest rates could rise sooner than thought, says BOE rate-setter (Guardian)
- Exclusive – Gulf Arab states may need to rethink policy: Qatar c.banker (Reuters)
- Mexico’s Carstens says price drop not yet sustained; peso pares loss (Bloomberg)
- Mexico central bank seen holding rate steady, hiking in Q3 (Reuters)
- Malaysia likely to hold interest rates (Rakyat Post)
- PM Key says New Zealand interest rates may stay lower for longer (Bloomberg)
- New Zealand rise melts away into distant future (New Zealand Herald)
- Traders signal deeper cuts after Bank of Canada’s interest rate shocker (BNN)
- How Draghi got divided ECB to say ‘yes’ to money printing (Reuters)
- Japan’s Amari: BOJ may have leeway in meeting inflation target (Reuters)
- Bundesbank’s Weidmann didn’t back ECB’s bond-buying program (WSJ)
- Belarus central bank cuts ratio for FX reserve requirements (BelTA)
- Majority of BOJ members say oil plunge benefits economy: Dec minutes (Reuters)
- Central bank surveys show FX volumes hit record highs (Reuters)
- Nigeria central bank governor rules out naira float (Reuters)
- Poland considers franc-loan conversion to make banks pay (Bloomberg)
- Serbian central bank sells euros to boost the dinar (Reuters)
- Serbian central bank says discussed CHF-denominated loan terms (Reuters)
- Indian economic growth forecasts pegged back despite rate cuts: Reuters Poll
- BOE’s Carney: We will get inflation back to target in two years (The Telegraph)
- Danish central bank will not lift current account cap to help banks (Reuters)
- Interest rates should be cut to help Thai economy: minister (Reuters)
- Cbank has room to lower interest rates in 2015-Vietnam Economic Times (Reuters)
- www.CentralBankNews.info
Sri Lanka holds rate, sees robust economic performance
Sri Lanka's central bank maintained its key policy rates, including the Standing Deposit Facility Rate (SDFR) at 6.50 percent, saying the country's economy is "expected to record a robust performance in the period ahead" with appropriate macroeconomic policies to boost domestic and foreign investor confidence.
The Central Bank of Sri Lanka, which has kept rates steady since October 2013, also said inflation was expected to decline in the months ahead due to subdued demand and inflation expectations, the impact of further reductions in fuel prices in January, and the expected reduction of administered prices of other key commodities as part of the government's '100-Day Programme.'
Sri Lanka's headline inflation rate rose to 2.1 percent in December from 1.5 percent the previous month while core inflation eased to 3.2 percent from 3.6 percent in November, continuing its recent path of remaining between 3 and 4 percent.
The central bank, which targets inflation of 3-5 percent this year, attributed low inflation to contained demand pressures along with favorable supply side developments and downward revisions in domestic energy prices in the last few months of 2014.
The new governor of the central bank, Arjuna Mahendran, assumed his duties on Monday, replacing Ajith Nivard Cabraal who resigned in January following the presidential elections.
The Central Bank of Sri Lanka, which has kept rates steady since October 2013, also said inflation was expected to decline in the months ahead due to subdued demand and inflation expectations, the impact of further reductions in fuel prices in January, and the expected reduction of administered prices of other key commodities as part of the government's '100-Day Programme.'
Sri Lanka's headline inflation rate rose to 2.1 percent in December from 1.5 percent the previous month while core inflation eased to 3.2 percent from 3.6 percent in November, continuing its recent path of remaining between 3 and 4 percent.
The central bank, which targets inflation of 3-5 percent this year, attributed low inflation to contained demand pressures along with favorable supply side developments and downward revisions in domestic energy prices in the last few months of 2014.
The new governor of the central bank, Arjuna Mahendran, assumed his duties on Monday, replacing Ajith Nivard Cabraal who resigned in January following the presidential elections.
Angola postpones monetary policy meeting until Feb. 2
Angola's central bank has postponed a meeting of its monetary policy committee to Monday, Feb. 9 from the originally scheduled Monday, Jan. 26.
The National Bank of Angola (BNA) did not provide any reason for the change in a statement on its website.
On Jan. 15 Angola's president appointed Jose Pedro de Morais, finance minister from 2002-2008, as the central bank's 15th governor, replacing Jose de Lima Massano.
Massano was appointed as governor in October 2010 for an unspecified period.
The BNA last changed its rate in October 2014 when it raised the benchmark Basic Interest Rate by 25 basis points to 9.0 percent following a rate cut in July of 50 basis points for a net reduction of 25 points in 2014.
www.CentralBankNews.info
The National Bank of Angola (BNA) did not provide any reason for the change in a statement on its website.
On Jan. 15 Angola's president appointed Jose Pedro de Morais, finance minister from 2002-2008, as the central bank's 15th governor, replacing Jose de Lima Massano.
Massano was appointed as governor in October 2010 for an unspecified period.
The BNA last changed its rate in October 2014 when it raised the benchmark Basic Interest Rate by 25 basis points to 9.0 percent following a rate cut in July of 50 basis points for a net reduction of 25 points in 2014.
www.CentralBankNews.info
Monetary Policy Week in Review – Jan 19-24, 2015: 60 pct of central bank policy decisions result in rate change
The
European Central Bank’s (ECB) embrace of full-scale quantitative easing with
the purchase of government bonds was the main feature of global monetary policy
last week along with five rate cuts, including surprise cuts by Canada and Denmark.
Turkey and
Pakistan’s rate cuts were largely expected while Brazil’s rate rise was also expected. Armenia continued its tightening cycles in response to
the ongoing pressure on its dram currency due to the country’s close links with
Russia.
Through
the first five weeks of this year, the 90 central banks followed by Central
Bank News have cut their policy rates 11 times, or 44 percent of this year’s 25
policy decisions, a clear indication of central banks’ bias toward cutting
policy rates in the face of weakening global growth and falling inflation from
lower oil prices.
Meanwhile, four central banks have raised
rates this year – Belarus, Mongolia, Brazil and Armenia – amounting to 16
percent of this year’s policy decisions.
This
means that 60 percent of this year’s monetary policy decisions have resulted in
rate changes, showing how hyper-active central banks have been in adjusting
their policy to the main drivers of global monetary policy so far this year:
the ECB’s expanded stimulus, the crises in Russia, the pending policy
tightening by the Federal Reserve, sluggish global growth and falling
inflation.
In
comparison, 24.3 percent of the 482 policy decisions in 2014 resulted in rate
changes, with 13.5 percent of the decisions favoring rate cuts and 10.8 percent
favoring rate increases.
Nine of
the 65 rate cuts last year were taken by central banks in advanced economies
compared with 25 from emerging market central banks, 14 from frontier markets
and 17 from other central banks.
Four of
the 52 rate increases in 2014 came from advanced economies – New Zealand accounted
for all these rate hikes – while 24 rate rises were done by emerging market
central banks, five from frontier market central banks and 19 by central banks
in other markets.
Despite
the large number of rate cuts, the Global Monetary Policy Rate (GMPR) - the average
rate of the 90 central banks followed by Central Bank News – rose to 5.84
percent at the end of last week from 5.74 percent at the end of 2014.
This is partly due to a change in the
central banks included in the coverage - the Kyrgyz Republic has been included
while Samoa has been dropped – and the fact that central banks often raise
rates in larger increments than when they cut rates.
The 500 basis point rate rise by Belarus on
Jan. 8 is a case in point, with this rise larger than the combined rate cuts so
far this month by Bulgaria, Uzbekistan, Romania, India, Switzerland, Egypt,
Peru, Denmark, Canada and Pakistan.
LIST OF LAST
WEEK’S CENTRAL BANK DECISIONS:
- Denmark cuts lending, deposit rates by 15 bps
- Turkey cuts rate 50 bps, changes to depend on inflation
- Nigeria holds rate, needs time for past hike to "crystalize"
- BOJ maintains QQE target and cuts inflation forecast
- Canada cuts rate 25 bps, lowers growth, inflation outlook
- Brazil unanimously raises rate by another 50 bps
- ECB maintains rates, further news at press conference
- ECB to boost asset purchases to 60 billion euros a month
- Armenia raises rate 100 bps, inflation expectations high
- Pakistan cuts rate 100 bps, revises down inflation f'cast
OTHER STORIES
LAST WEEK:
TABLE WITH
LAST WEEK’S MONETARY POLICY DECISIONS:
| COUNTRY | MSCI | NEW RATE | OLD RATE | 1 YEAR AGO |
| DENMARK | DM | 0.05% | 0.20% | 0.20% |
| TURKEY | EM | 7.75% | 8.25% | 10.00% |
| NIGERIA | FM | 13.00% | 13.00% | 12.00% |
| BRAZIL | EM | 12.25% | 11.75% | 10.50% |
| JAPAN | DM | N/A | N/A | N/A |
| CANADA | DM | 0.75% | 1.00% | 1.00% |
| EURO AREA | DM | 0.05% | 0.05% | 0.25% |
| DENMARK (DEPO RATE) | DM | -0.35% | -0.20% | -0.10% |
| ARMENIA | 9.50% | 8.50% | 7.75% | |
| EASTERN CARIBBEAN | 23-Jan | 6.50% | 6.50% | |
| PAKISTAN | FM | 8.50% | 9.50% | 10.00% |
This week (Week
5) central banks from 15 countries or jurisdictions are scheduled to decide on
monetary policy: Israel, Kyrgyzstan, Angola, Sri Lanka, Hungary, Bangladesh, the
United States, Thailand, Malaysia, South Africa, New Zealand, Mexico, Russia,
Colombia and Trinidad and Tobago.
TABLE WITH THIS WEEK’S MONETARY POLICY DECISIONS:
| COUNTRY | MSCI | DATE | CURRENT RATE | 1 YEAR AGO |
| ISRAEL | DM | 0.25% | 0.25% | 1.00% |
| KYRGYZSTAN | 26-Jan | 10.50% | N/A | |
| ANGOLA | 26-Jan | 9.00% | 9.25% | |
| SRI LANKA | FM | 27-Jan | 6.50% | 6.50% |
| HUNGARY | EM | 27-Jan | 2.10% | 2.85% |
| BANGLADESH | FM | 28-Jan | 7.75% | 7.75% |
| UNITED STATES | DM | 28-Jan | 0.25% | 0.25% |
| THAILAND | EM | 28-Jan | 2.00% | 2.25% |
| MALAYSIA | EM | 28-Jan | 3.25% | 3.00% |
| SOUTH AFRICA | EM | 29-Jan | 5.75% | 5.50% |
| NEW ZEALAND | DM | 29-Jan | 3.50% | 2.50% |
| MEXICO | EM | 29-Jan | 3.00% | 3.50% |
| RUSSIA | EM | 30-Jan | 17.00% | 5.50% |
| COLOMBIA | EM | 30-Jan | 4.50% | 3.25% |
| TRINIDAD & TOBAGO | 30-Jan | 3.25% | 2.75% |
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