Mexico's central bank maintained its benchmark target for the overnight interest rate at 3.0 percent, as expected, saying economic growth continues at a moderate pace and slack conditions in the labor market means there are no generalized price pressures from demand.
The Bank of Mexico, which cut its rate by 50 basis points in June 2014, added that headline inflation is expected to remain close to to 3.0 percent in coming months but end the year slightly below that level with risks to this estimate from a depreciation of the peso' s exchange rate.
On the other hand, it is possible that economic activity is more dynamic due to further declines in energy prices and telecommunications services.
"In short, it is estimated that the balance of risks for inflation remain unchanged from the previous policy decision," the central bank said.
Mexico's consumer price inflation rate rose slightly to 3.14 percent in March from 3.0 percent the previous month.
www.CentralBankNews.info
Thursday, April 30, 2015
Russia cuts rate 150 bps and is ready to cut further
Russia's central bank cut its key rate by 150 basis points to 12.50 percent and said it was ready to cut rates further as inflationary risks continue to weaken.
The Bank of Russia has now cut its rate by 450 basis points this year as it slowly reverses last year's total rate rises of 1,150 basis points to protect the value of the ruble and prevent an inflationary surge in response to the conflict with Ukraine that triggered Western sanctions on top of last year's plunge in oil prices that hit Russia's exports hard.
But the outlook for Russia's economy has brightened as oil prices have rebounded, tensions in Ukraine have calmed and the ruble has rallied in the last three months.
The Bank of Russia said inflation is now starting to stabilize and inflationary expectations have declined against the background of falling consumer demand from lower incomes.
The central bank said it now expects the inflation rate to decline to below 8 percent by April 2016 and hit its target of 4 percent in 2017. Last month the central bank forecast that inflation would slow to 9 percent by March 2016.
Russia's headline inflation rate eased to 16.5 percent as of April 27 from 16.9 percent in March, but the bank said this was largely due to short-term factors of the weak ruble in late 2014 and January 2015 and trade restrictions.
The Bank of Russia has now cut its rate by 450 basis points this year as it slowly reverses last year's total rate rises of 1,150 basis points to protect the value of the ruble and prevent an inflationary surge in response to the conflict with Ukraine that triggered Western sanctions on top of last year's plunge in oil prices that hit Russia's exports hard.
But the outlook for Russia's economy has brightened as oil prices have rebounded, tensions in Ukraine have calmed and the ruble has rallied in the last three months.
The Bank of Russia said inflation is now starting to stabilize and inflationary expectations have declined against the background of falling consumer demand from lower incomes.
The central bank said it now expects the inflation rate to decline to below 8 percent by April 2016 and hit its target of 4 percent in 2017. Last month the central bank forecast that inflation would slow to 9 percent by March 2016.
Russia's headline inflation rate eased to 16.5 percent as of April 27 from 16.9 percent in March, but the bank said this was largely due to short-term factors of the weak ruble in late 2014 and January 2015 and trade restrictions.
Fiji maintains rate, confirms higher 2015 growth forecast
Fiji's central bank maintained its benchmark Overnight Policy Rate (OPR) at 0.5 percent, saying the objectives of monetary policy were "comfortable" in the near term despite pressure on foreign reserves from growing imports.
The Reserve Bank of Fiji (RBF), which has held its rate steady since November 2011, confirmed its forecast for the country's economy to expand by 4.3 percent this year, an upwards revision of its forecast of 4.0 percent that was released in the 2015 national budget.
The RBF already issued the revised forecast on April 10, reflecting higher government expenditure, particularly capital spending.
Fiji's Gross Domestic Product expanded by 4.1 percent in 2014 and the International Monetary Fund earlier this month forecast 3.3 percent growth this year.
The Reserve Bank of Fiji (RBF), which has held its rate steady since November 2011, confirmed its forecast for the country's economy to expand by 4.3 percent this year, an upwards revision of its forecast of 4.0 percent that was released in the 2015 national budget.
The RBF already issued the revised forecast on April 10, reflecting higher government expenditure, particularly capital spending.
Fiji's Gross Domestic Product expanded by 4.1 percent in 2014 and the International Monetary Fund earlier this month forecast 3.3 percent growth this year.
BOJ maintains stance, trims growth, inflation outlook
Japan's central bank maintained its aggressive easing stance and aim of boosting the country's monetary base by some 80 trillion yen to raise inflation toward its 2.0 percent target, and was optimistic about the outlook despite trimming its forecasts for economic growth and inflation.
The Bank of Japan (BOJ), which embarked on "qualitative and quantitative easing" (QQE) two years ago to rid the country of 15 years of deflation, said the country's economy was likely to continue growing above its potential through 2016 and maintained that inflation would reach its target in the first half of fiscal 2016 assuming that oil prices start to rise "moderately."
For fiscal 2015, which began on April 1, the BOJ forecast average real Gross Domestic Product growth of 2.0 percent, slightly down from its January forecast of 2.1 percent, and fiscal 2016 growth of 1.5 percent, slightly down from 1.6 percent.
In 2017 the BOJ expects growth to taper off and average only 0.2 percent, partly due to an expected further increase in consumption tax to 10 percent in April 2017.
The BOJ's forecast for headline inflation for fiscal 2015 was trimmed to an average of 0.8 percent from January's forecast of 1.0 percent, mainly due to the fall in crude oil prices. For fiscal 2016 inflation is seen hitting the BOJ's 2.0 percent target, below its January forecast of 2.2 percent, before accelerating to 3.2 percent in fiscal 2017.
The Bank of Japan (BOJ), which embarked on "qualitative and quantitative easing" (QQE) two years ago to rid the country of 15 years of deflation, said the country's economy was likely to continue growing above its potential through 2016 and maintained that inflation would reach its target in the first half of fiscal 2016 assuming that oil prices start to rise "moderately."
For fiscal 2015, which began on April 1, the BOJ forecast average real Gross Domestic Product growth of 2.0 percent, slightly down from its January forecast of 2.1 percent, and fiscal 2016 growth of 1.5 percent, slightly down from 1.6 percent.
In 2017 the BOJ expects growth to taper off and average only 0.2 percent, partly due to an expected further increase in consumption tax to 10 percent in April 2017.
The BOJ's forecast for headline inflation for fiscal 2015 was trimmed to an average of 0.8 percent from January's forecast of 1.0 percent, mainly due to the fall in crude oil prices. For fiscal 2016 inflation is seen hitting the BOJ's 2.0 percent target, below its January forecast of 2.2 percent, before accelerating to 3.2 percent in fiscal 2017.
New Zealand holds rate, may cut if inflation heads lower
New Zealand's central bank left its benchmark Official Cash Rate (OCR) unchanged at 3.5 percent, as widely expected, but raised the possibility of a rate cut by saying that any changes in the policy rate would depend on inflationary pressures and "it would be appropriate to lower the OCR if demand weakens, and wage and price-setting outcomes settle at levels lower than is consistent with the inflation target."
The Reserve Bank of New Zealand (RBNZ), which raised its rate by 100 basis points in 2014 before switching to a neutral bias in January and March, ruled out any near-term rate rises by saying it "expects to keep monetary policy stimulatory, and is not currently considering any increase in interest rates."
The policy statement echoes a speech by RBNZ Assistant Governor John McDermott on April 22 when he said the outlook for inflation was subdued, suggesting that monetary policy should remain stimulatory for a prolonged period and any weakening of demand and inflationary pressures would prompt the bank to consider lowering rates.
The RBNZ's mention of a possible rate cut compares with its statement from last month when it said any future rate changes could be up or down, depending on the flow of data.
Although New Zealand's economy continues to grow at a rate of 3 percent, the RBNZ is clearly concerned about the outlook, saying lower dairy incomes, the lingering effects of drought, fiscal consolidation and the high exchange rate were "weighing on the outlook for growth."
In March the central bank described the country's economy as "strong" even as it also pointed to the same factors as weighing on growth.
The RBNZ voiced its displeasure with the recent rise in the New Zealand dollar's exchange rate, saying this appreciation was "unwelcome" and repeated its recent view that it remains "unjustifiably high and unsustainable."
After depreciating from July 2014 to February this year, the New Zealand dollar, known as the kiwi, has reversed course and strengthened, putting further downward pressure on inflation by lowering import prices.
The kiwi was trading at 1.31 to the U.S. dollar today, up from 1.379 on Jan. 31 but still below 1.28 at the start of the year.
Consumer price inflation plunged to 0.1 percent in the first quarter of this year from 0.8 percent in the fourth quarter, well below the RBNZ's target of 2.0 percent, plus/minus 1 percentage point.
The Reserve Bank of New Zealand (RBNZ), which raised its rate by 100 basis points in 2014 before switching to a neutral bias in January and March, ruled out any near-term rate rises by saying it "expects to keep monetary policy stimulatory, and is not currently considering any increase in interest rates."
The policy statement echoes a speech by RBNZ Assistant Governor John McDermott on April 22 when he said the outlook for inflation was subdued, suggesting that monetary policy should remain stimulatory for a prolonged period and any weakening of demand and inflationary pressures would prompt the bank to consider lowering rates.
The RBNZ's mention of a possible rate cut compares with its statement from last month when it said any future rate changes could be up or down, depending on the flow of data.
Although New Zealand's economy continues to grow at a rate of 3 percent, the RBNZ is clearly concerned about the outlook, saying lower dairy incomes, the lingering effects of drought, fiscal consolidation and the high exchange rate were "weighing on the outlook for growth."
In March the central bank described the country's economy as "strong" even as it also pointed to the same factors as weighing on growth.
The RBNZ voiced its displeasure with the recent rise in the New Zealand dollar's exchange rate, saying this appreciation was "unwelcome" and repeated its recent view that it remains "unjustifiably high and unsustainable."
After depreciating from July 2014 to February this year, the New Zealand dollar, known as the kiwi, has reversed course and strengthened, putting further downward pressure on inflation by lowering import prices.
The kiwi was trading at 1.31 to the U.S. dollar today, up from 1.379 on Jan. 31 but still below 1.28 at the start of the year.
Consumer price inflation plunged to 0.1 percent in the first quarter of this year from 0.8 percent in the fourth quarter, well below the RBNZ's target of 2.0 percent, plus/minus 1 percentage point.
Wednesday, April 29, 2015
Brazil raises rate another 50 bps to 13.25%
Brazil's central bank raised its benchmark Selic rate by a further 50 basis points to 13.25 percent, as widely expected, and said in a brief statement that the decision was based on an evaluation of the macroeconomic scenario and the outlook for inflation.
The Central Bank of Brazil has now raised its policy rate by 150 basis points this year and by 600 points since embarking on a tightening cycle in April 2013 to force inflation back to the bank's target range of 4.5 percent, plus/minus 2 percentage points.
The decision by the central bank's monetary policy committee, known as Copom, was unanimous and no bias was indicated.
Brazil's headline inflation rate rose to 8.13 percent in March from February's 7.7 percent.
In the minutes from the Copom's meeting in March, when it also raised the rate by 50 basis points, it said that movement in inflation toward its 4.5 percent target in 2016 had strengthened, but "progress made in the fight against inflation - like benign signals stemming from medium and long-term expectations indicators - has not been sufficient yet."
In its quarterly report from last month, the central bank raised its 2015 inflation forecast to 7.9 percent from 6.1 percent previously but cut the 2016 forecast to 4.9 percent from 5.0 percent.
In 2014 Brazil's inflation rate averaged 6.3 percent and the International Monetary Fund (IMF) forecasts 7.8 percent this year.
In its latest outlook, the IMF cut its forecast for Brazil's economic growth this year to a 1.0 percent contraction from a previous forecast of 0.3 percent growth due to tighter fiscal and monetary policies and lower investments by scandal-hit, state-run oil company Petrobras.
In 2014 Brazil's economy expanded by only 0.1 percent after 2.7 percent growth in 2013.
www.CentralBankNews.info
The Central Bank of Brazil has now raised its policy rate by 150 basis points this year and by 600 points since embarking on a tightening cycle in April 2013 to force inflation back to the bank's target range of 4.5 percent, plus/minus 2 percentage points.
The decision by the central bank's monetary policy committee, known as Copom, was unanimous and no bias was indicated.
Brazil's headline inflation rate rose to 8.13 percent in March from February's 7.7 percent.
In the minutes from the Copom's meeting in March, when it also raised the rate by 50 basis points, it said that movement in inflation toward its 4.5 percent target in 2016 had strengthened, but "progress made in the fight against inflation - like benign signals stemming from medium and long-term expectations indicators - has not been sufficient yet."
In its quarterly report from last month, the central bank raised its 2015 inflation forecast to 7.9 percent from 6.1 percent previously but cut the 2016 forecast to 4.9 percent from 5.0 percent.
In 2014 Brazil's inflation rate averaged 6.3 percent and the International Monetary Fund (IMF) forecasts 7.8 percent this year.
In its latest outlook, the IMF cut its forecast for Brazil's economic growth this year to a 1.0 percent contraction from a previous forecast of 0.3 percent growth due to tighter fiscal and monetary policies and lower investments by scandal-hit, state-run oil company Petrobras.
In 2014 Brazil's economy expanded by only 0.1 percent after 2.7 percent growth in 2013.
www.CentralBankNews.info
US Fed holds rate as harsh winter hits economic growth
The U.S. Federal Reserve held its benchmark federal funds rate steady and repeated that it will first raise its target from 0-0.25 percent "when it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term."
In its statement, the Federal Open Market Committee (FOMC), the Fed's policy making body, acknowledged that the U.S. economy had "slowed during the winter months, in part reflecting transitory factors," as the pace of job gains had moderated, household spending had declined household, fixed investment had softened and exports had declined.
In addition, inflation remains below the Fed's objective, partly reflecting the earlier decline in energy prices and lower price of non-energy imports, partly due to the stronger dollar.
Unlike its statement in March, the FOMC did not make any references to dates.
Last month, when the Fed changed its guidance by dropping the word "patient" and replacing it with the current statement that it is looking for further improvement in jobs and inflation, it added that an increase in the fed funds rate was unlikely in April.
The fed funds rate has been steady at the current level since the depth of the global financial crises in December 2008.
The Fed's emphasis on how the U.S. economy has slowed, and a unanimous vote by the FOMC members, shows there is little immediate pressure to raise rates in coming months.
Earlier today it became clear just how much the economy slowed in the first quarter, with Gross Domestic Product up by only 0.2 percent from the fourth quarter's 2.2 percent expansion.
However, there is still considerable economic momentum in the U.S. economy, which is forecast by the International Monetary Fund to expand by 3.1 percent this year, up from 2014's 2.4 percent.
When compared with the first quarter of 2014, when economic activity was also hit by adverse winter weather, economic output in the January-March period was up by 3.0 percent, up from the fourth quarters's 2.4 percent pace and the strongest since the fourth quarter of 2013.
Despite the decline in household spending noted by the Fed, it also said that real incomes had risen strongly due to lower energy prices and consumer sentiment remains high.
But there is little inflationary pressure right now, with consumer prices down by 0.1 percent in March after no change in February, the eight consecutive month of prices below 2.0 percent.
In its statement, the Federal Open Market Committee (FOMC), the Fed's policy making body, acknowledged that the U.S. economy had "slowed during the winter months, in part reflecting transitory factors," as the pace of job gains had moderated, household spending had declined household, fixed investment had softened and exports had declined.
In addition, inflation remains below the Fed's objective, partly reflecting the earlier decline in energy prices and lower price of non-energy imports, partly due to the stronger dollar.
Unlike its statement in March, the FOMC did not make any references to dates.
Last month, when the Fed changed its guidance by dropping the word "patient" and replacing it with the current statement that it is looking for further improvement in jobs and inflation, it added that an increase in the fed funds rate was unlikely in April.
The fed funds rate has been steady at the current level since the depth of the global financial crises in December 2008.
The Fed's emphasis on how the U.S. economy has slowed, and a unanimous vote by the FOMC members, shows there is little immediate pressure to raise rates in coming months.
Earlier today it became clear just how much the economy slowed in the first quarter, with Gross Domestic Product up by only 0.2 percent from the fourth quarter's 2.2 percent expansion.
However, there is still considerable economic momentum in the U.S. economy, which is forecast by the International Monetary Fund to expand by 3.1 percent this year, up from 2014's 2.4 percent.
When compared with the first quarter of 2014, when economic activity was also hit by adverse winter weather, economic output in the January-March period was up by 3.0 percent, up from the fourth quarters's 2.4 percent pace and the strongest since the fourth quarter of 2013.
Despite the decline in household spending noted by the Fed, it also said that real incomes had risen strongly due to lower energy prices and consumer sentiment remains high.
But there is little inflationary pressure right now, with consumer prices down by 0.1 percent in March after no change in February, the eight consecutive month of prices below 2.0 percent.
Uzbekistan maintains rate at 9%
Uzbekistan's central bank left its benchmark refinancing rate steady at 9.0 percent, saying this decision was based on economic forecasts, in particular the inflation target, and to ensure a stable resource base for commercial banks.
The Central Bank of the Republic of Uzbekistan, which cut its rate by 100 basis points in January, last week said the capital adequacy of the country's banking system amounted to 23.7 percent, three times higher than the international standards of 8.0 percent set by the Basel Committee.
The bank's aim is to raise the total capital of banks to at least 20 percent. The current liquidity of the banking system currently amounts to 24.3 percent, twice the international standards.
The central bank's inflation target for 2015 is 6-7 percent.
In 2014 inflation averaged 8.4 percent and is projected to rise to 9.5 percent this year and 9.8 percent in 2016 by the International Monetary Fund.
The bank's statement was issued on April 28.
www.CentralBankNews.info
The Central Bank of the Republic of Uzbekistan, which cut its rate by 100 basis points in January, last week said the capital adequacy of the country's banking system amounted to 23.7 percent, three times higher than the international standards of 8.0 percent set by the Basel Committee.
The bank's aim is to raise the total capital of banks to at least 20 percent. The current liquidity of the banking system currently amounts to 24.3 percent, twice the international standards.
The central bank's inflation target for 2015 is 6-7 percent.
In 2014 inflation averaged 8.4 percent and is projected to rise to 9.5 percent this year and 9.8 percent in 2016 by the International Monetary Fund.
The bank's statement was issued on April 28.
www.CentralBankNews.info
Central Bank News Link List - Apr 29, 2015: Fed meeting seen as a chance to nudge markets on rate hike timing
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 meeting seen as a chance to nudge markets on rate hike timing (Reuters)
- Euro-area bank lending increases for first time since 2012 (Bloomberg)
- China c.bank says no plans to buy local govt debt-media (Reuters)
- Turkey’s central bank to continue implementing cautious mon. policy (DHA)
- Pound heads for best run in three years as rates outlook shifts (Bloomberg)
- Central banks run in place as inflation slide outpaces rate cuts (Bloomberg)
- China’s slowdown puts Asian central bankers in a bind as Fed looms (Bloomberg)
- Canada’s Poloz defends rate cut before parliamentarians (CBC)
- ECB Coeure: QE limiting risk of financial market contagion (MNI)
- New Zealand cash rate tipped to hold, for now (New Zealand Herald)
- Brazil’s real climbs as higher rates seen attracting investors (Bloomberg)
- Deflation? Oil’s 45 percent rebound could be markets’ next headache (Reuters)
- Norway may need to raise bank buffers in 2016: Olsen (Reuters)
- Poland’s rates could stay unchanged for 20 months, says central banker (WSJ)
- Indonesia’s c. bank sees economic growth well below Jokowi’s ‘19 target (Reuters)
- Qatar may follow Fed on interest rate hike: Samba (Gulf Times)
- Egypt central bank governor says black market wiped out (Cairo Post)
- Mexico central bank passes $2 bln in reserve gains to government (Reuters)
- Peru’s central bank loosens local currency reserve rules (Reuters)
- Bank of Zambia to make changes to monetary policy-Kalyaly (Lusaka Times)
- Balkan states to see stable or higher 2015, central bankers say (Bloomberg)
Sweden holds rate but boosts QE, drops rate path
Sweden's central bank maintained its benchmark repurchase rate at minus 0.25 percent but raised its target for purchasing government bonds by a further 40-50 billion Swedish crowns to ensure that deflation doesn't return and consumer prices continue to rise.
The Riksbank, which has cut its rate by 25 basis points this year following an unscheduled cut of 15 points in March and a 10 point cut in February, underscored its "very limited" tolerance for low inflation and again pledged that it was "highly prepared to make monetary policy even more expansionary if necessary, even between the ordinary monetary policy meetings."
In addition, the Riksbank said it could further expand its purchase of bonds, with the new target now at 80-90 billion krona and purchases being made from May to end-September.
As in March, the Riksbank said it was prepared to launch a program to lend money to companies via banks and was ready "to intervene on the foreign exchange market if the upturn in inflation is threatened as a result, for instance, or a very troublesome market development."
Underscoring its expansionary policy stance, the Riksbank lowered the expected path for raising the repo rate. The repo rate is now projected to average minus 0.29 percent in second quarter of 2016 - raising the possibility of further rate cuts - compared with its February forecast of minus 0.12 percent.
For 2016 the repo rate is expected to average minus 0.2 percent, down from its previous forecast of zero percent, and for 2015 it is seen averaging minus 0.2 percent, down from minus 0.1 percent.
By the second quarter of 2017 the repo rate is seen rising to an average 0.24 percent, down from 0.83 percent in February and then slowly rise to 0.78 percent by second quarter of 2018. The average forecast for the repo rate in 2017 was 0.3 percent, down from February's forecast of 0.9 percent.
Sweden's consumer price inflation rate rose to 0.2 percent in March, the second consecutive month of inflation after six months of deflation, and the Riksbank raised its forecast for average 2015 inflation of 0.3 percent from February's 0.1 percent forecast.
For 2016 inflation is seen rising further to 2.1 percent from 1.9 percent and to 2.7 percent in 2017, slightly below the previous forecast of 3.3 percent. The Riksbank targets 2.0 percent inflation.
The central bank's expansionary policy of pushing down interest rates has not only helped boost demand but also weakened the exchange rate of the crown, helping the internationally competitive position of exports and raising the cost of imported prices and thus inflation.
The Riksbank's forecast for economic growth in 2015 was raised to 3.2 percent from a previous 2.7 percent and the 2016 forecast was upped to 3.4 percent from 3.3 percent and the 2017 forecast to 2.7 percent from 2.2 percent.
The Riksbank, which has cut its rate by 25 basis points this year following an unscheduled cut of 15 points in March and a 10 point cut in February, underscored its "very limited" tolerance for low inflation and again pledged that it was "highly prepared to make monetary policy even more expansionary if necessary, even between the ordinary monetary policy meetings."
In addition, the Riksbank said it could further expand its purchase of bonds, with the new target now at 80-90 billion krona and purchases being made from May to end-September.
As in March, the Riksbank said it was prepared to launch a program to lend money to companies via banks and was ready "to intervene on the foreign exchange market if the upturn in inflation is threatened as a result, for instance, or a very troublesome market development."
Underscoring its expansionary policy stance, the Riksbank lowered the expected path for raising the repo rate. The repo rate is now projected to average minus 0.29 percent in second quarter of 2016 - raising the possibility of further rate cuts - compared with its February forecast of minus 0.12 percent.
For 2016 the repo rate is expected to average minus 0.2 percent, down from its previous forecast of zero percent, and for 2015 it is seen averaging minus 0.2 percent, down from minus 0.1 percent.
By the second quarter of 2017 the repo rate is seen rising to an average 0.24 percent, down from 0.83 percent in February and then slowly rise to 0.78 percent by second quarter of 2018. The average forecast for the repo rate in 2017 was 0.3 percent, down from February's forecast of 0.9 percent.
Sweden's consumer price inflation rate rose to 0.2 percent in March, the second consecutive month of inflation after six months of deflation, and the Riksbank raised its forecast for average 2015 inflation of 0.3 percent from February's 0.1 percent forecast.
For 2016 inflation is seen rising further to 2.1 percent from 1.9 percent and to 2.7 percent in 2017, slightly below the previous forecast of 3.3 percent. The Riksbank targets 2.0 percent inflation.
The central bank's expansionary policy of pushing down interest rates has not only helped boost demand but also weakened the exchange rate of the crown, helping the internationally competitive position of exports and raising the cost of imported prices and thus inflation.
The Riksbank's forecast for economic growth in 2015 was raised to 3.2 percent from a previous 2.7 percent and the 2016 forecast was upped to 3.4 percent from 3.3 percent and the 2017 forecast to 2.7 percent from 2.2 percent.
Thailand cuts rate 25 bps to boost growth as risks rise
Thailand's central bank cut its policy rate for the second consecutive month "to add more support to the economic recovery amid higher downside risks, as well as to anchor inflation expectations at an appropriate level."
The Bank of Thailand (BOT) cut its policy rate by a further 25 basis points to 1.50 percent following a similar cut in March for a total cut of 50 points this year. Most economists had expected the BOT to maintain its rate today.
Last month the BOT said it would pursue "appropriate policy" to sustain the ongoing economic recovery while today it said that it would conduct policy to ensure that monetary conditions "are sufficiently accommodative for a continued recovery" and it was "ready to utilize an appropriate mix of available policy tools."
Two members of the seven-member policy committee voted to maintain the policy rate at 1.75 percent, arguing increased fiscal stimulus should help economic activity and the space for additional easing was limited. In March three members had voted to maintain rates.
The BOT said it expects the Thai economy to recover at a slower pace than expected last month as higher public investment and rising tourism are not enough to offset weaker exports and private consumption in the first quarter of the year.
Exports from Thailand are an increased risk of declining from the slowdown in China and a shift in global and trading patterns as major trading partners rely less on imports. In addition, exports are also being hit by the recent appreciation in the Thai baht, the BOT said.
Last week Don Nakornthab, director of BOT's macroeconomic policy office, said Thailand's economy likely contracted in the first quarter from the fourth quarter but should expand in the second quarter due to improved exports and government investments. First quarter data will be released on May 18.
Last month the BOT cut its 2015 growth forecast to 3.8 percent from a previous 4.0 percent projection and the forecast for headline inflation to 0.2 percent from 1.2 percent. The Thai economy, which expanded by only 0.7 percent last year, is forecast to expand by 3.9 percent in 2016.
Thailand's Gross Domestic Product expanded by 1.7 percent in the fourth quarter of 2014 from the third quarter for annual growth of 2.3 percent. An official of the national planning agency has estimated first quartern annual growth around 3 percent.
Thailand's consumer price inflation was minus 0.57 percent in March, the third consecutive month of deflation, well below the BOT's target of plus 2.5 percent, plus/minus 1.5 percentage points.
The Bank of Thailand (BOT) cut its policy rate by a further 25 basis points to 1.50 percent following a similar cut in March for a total cut of 50 points this year. Most economists had expected the BOT to maintain its rate today.
Last month the BOT said it would pursue "appropriate policy" to sustain the ongoing economic recovery while today it said that it would conduct policy to ensure that monetary conditions "are sufficiently accommodative for a continued recovery" and it was "ready to utilize an appropriate mix of available policy tools."
Two members of the seven-member policy committee voted to maintain the policy rate at 1.75 percent, arguing increased fiscal stimulus should help economic activity and the space for additional easing was limited. In March three members had voted to maintain rates.
The BOT said it expects the Thai economy to recover at a slower pace than expected last month as higher public investment and rising tourism are not enough to offset weaker exports and private consumption in the first quarter of the year.
Exports from Thailand are an increased risk of declining from the slowdown in China and a shift in global and trading patterns as major trading partners rely less on imports. In addition, exports are also being hit by the recent appreciation in the Thai baht, the BOT said.
Last week Don Nakornthab, director of BOT's macroeconomic policy office, said Thailand's economy likely contracted in the first quarter from the fourth quarter but should expand in the second quarter due to improved exports and government investments. First quarter data will be released on May 18.
Last month the BOT cut its 2015 growth forecast to 3.8 percent from a previous 4.0 percent projection and the forecast for headline inflation to 0.2 percent from 1.2 percent. The Thai economy, which expanded by only 0.7 percent last year, is forecast to expand by 3.9 percent in 2016.
Thailand's Gross Domestic Product expanded by 1.7 percent in the fourth quarter of 2014 from the third quarter for annual growth of 2.3 percent. An official of the national planning agency has estimated first quartern annual growth around 3 percent.
Thailand's consumer price inflation was minus 0.57 percent in March, the third consecutive month of deflation, well below the BOT's target of plus 2.5 percent, plus/minus 1.5 percentage points.
Monday, April 27, 2015
Kyrgyzstan maintains rate as inflation slows
Kyrgyzstan's central bank maintained its policy rate at 11.0 percent, saying inflation had slowed down but the country remains "affected by external factors."
The National Bank of the Kyrgyz Republic, which has raised its rate by 500 basis points since July 2014 to curb inflationary pressures from a depreciation of the som currency, said the country's economic growth was still being affected by the slowdown of its major trade partners and its policy was geared toward achieving inflation rates of 5-7 percent in the medium term.
As of mid-April Kyrgyzstan's inflation rate eased to 7.8 percent from 10.5 percent at the end of 2014 and 8.5 percent in March and a year-high of 11.6 percent in January.
High economic growth in the first quarter of 7.0 percent was mainly due to output from the Kumtor gold mine, with real Gross Domestic Product excluding Kumtor of 3.4 percent.
The Kyrgyzstani some began depreciating in August 2014 and hit a year-low of 63.9 to the U.S. dollar in early April but has risen since April 21. Today it was quoted at 61.1, down 3.6 percent since the start of 2015.
On April 8 the International Monetary Fund (IMF) approved a 3-year, US$92 million extended credit facility to the Kyrgyz Republic to help its government reduce economic vulnerabilities stemming from "a weak regional environment and dependency on gold and remittances."
The IMF said the Kyrgyz central bank would continue focusing on price stability and limit foreign exchange interventions to "smoothing excessive volatility without resisting exchange rate trends," with a strong communication strategy considered essential to the success of monetary policy.
The IMF forecast total GDP growth of 1.7 percent this year, down from an estimated 3.6 percent in 2014, with non-gold GDP growth of 2.7 percent in 2015 compared with 4.6 percent in 2014. Inflation is seen averaging 10.7 percent this year, up from an average 7.5 percent in 2014.
The National Bank of the Kyrgyz Republic, which has raised its rate by 500 basis points since July 2014 to curb inflationary pressures from a depreciation of the som currency, said the country's economic growth was still being affected by the slowdown of its major trade partners and its policy was geared toward achieving inflation rates of 5-7 percent in the medium term.
As of mid-April Kyrgyzstan's inflation rate eased to 7.8 percent from 10.5 percent at the end of 2014 and 8.5 percent in March and a year-high of 11.6 percent in January.
High economic growth in the first quarter of 7.0 percent was mainly due to output from the Kumtor gold mine, with real Gross Domestic Product excluding Kumtor of 3.4 percent.
The Kyrgyzstani some began depreciating in August 2014 and hit a year-low of 63.9 to the U.S. dollar in early April but has risen since April 21. Today it was quoted at 61.1, down 3.6 percent since the start of 2015.
On April 8 the International Monetary Fund (IMF) approved a 3-year, US$92 million extended credit facility to the Kyrgyz Republic to help its government reduce economic vulnerabilities stemming from "a weak regional environment and dependency on gold and remittances."
The IMF said the Kyrgyz central bank would continue focusing on price stability and limit foreign exchange interventions to "smoothing excessive volatility without resisting exchange rate trends," with a strong communication strategy considered essential to the success of monetary policy.
The IMF forecast total GDP growth of 1.7 percent this year, down from an estimated 3.6 percent in 2014, with non-gold GDP growth of 2.7 percent in 2015 compared with 4.6 percent in 2014. Inflation is seen averaging 10.7 percent this year, up from an average 7.5 percent in 2014.
Israel holds rate, warns shekel rise may weigh on exports
Israel's central bank maintained its benchmark interest rate at 0.10 percent, as expected by most economists, as inflation remains steady at a negative 1.0 percent, the economy continues to "grow at the moderate rate of the past two years" and the shekel has appreciated against the U.S. dollar and the euro during the last month.
The Bank of Israel (BOI), which cut its rate by 15 basis points in February to counter the negative impact on exports and inflation from an appreciation of the shekel, said the shekel had strengthened by about 3 percent agains the dollar between March 22 and April 24 and 1.3 percent against the euro.
Today the shekel was quoted at 3.89 to the dollar, largely unchanged from 3.90 at the end of 2014 but weaker than the 3.84 that it hit on Feb. 22.
Year-to-date, the BOI added there had been an effective appreciation of 3.7 percent in the shekel against the background of accommodative monetary policy in several major economies and a decline in the projected growth rate of world grade and continued appreciation "are liable to weigh on growth of exports and of the tradable sector.
Data for the first quarter of the year "point to a continuation of the moderate growth rate" of the last two years, the BOI said, adding that goods exports rose by 3.3 percent in March but was down 0.9 percent in the first quarter in U.S. dollar terms when disregarding the impact of work disruptions at Israel Chemicals and "atypical" patterns in the export of aeronautics.
Israel's consumer price inflation rate remained at a negative 1.0 percent in March - the seventh consecutive month of deflation - with the BOI saying short-term expectations were near, or slightly below, the lower bound of the bank's 1-3 percent target range. Longer-term expectations, however, remain stable around the midpoint of the range.
The Bank of Israel (BOI), which cut its rate by 15 basis points in February to counter the negative impact on exports and inflation from an appreciation of the shekel, said the shekel had strengthened by about 3 percent agains the dollar between March 22 and April 24 and 1.3 percent against the euro.
Today the shekel was quoted at 3.89 to the dollar, largely unchanged from 3.90 at the end of 2014 but weaker than the 3.84 that it hit on Feb. 22.
Year-to-date, the BOI added there had been an effective appreciation of 3.7 percent in the shekel against the background of accommodative monetary policy in several major economies and a decline in the projected growth rate of world grade and continued appreciation "are liable to weigh on growth of exports and of the tradable sector.
Data for the first quarter of the year "point to a continuation of the moderate growth rate" of the last two years, the BOI said, adding that goods exports rose by 3.3 percent in March but was down 0.9 percent in the first quarter in U.S. dollar terms when disregarding the impact of work disruptions at Israel Chemicals and "atypical" patterns in the export of aeronautics.
Israel's consumer price inflation rate remained at a negative 1.0 percent in March - the seventh consecutive month of deflation - with the BOI saying short-term expectations were near, or slightly below, the lower bound of the bank's 1-3 percent target range. Longer-term expectations, however, remain stable around the midpoint of the range.
Angola maintains rate as inflation rises further
Angola's central bank maintained its benchmark Basic Interest Rate (BNA) at 9.25 percent, citing an increase in inflation, a depreciation of the kwanza's exchange rate and an annual increase of 13.2 percent in the stock of credit to the economy.
The National Bank of Angola, which raised its rate by 25 basis points on March 30, noted that inflation, as measured by the CPI of the capital of Luanda, was up by an annual 7.87 percent in March, up 0.13 percentage points from February, with food and non-alcoholic beverages the largest contributor to the increase.
Meanwhile, the stock of credit issued by banks reached 3.41 billion kwanza in March.
The exchange rate of the kwanza, which has been hit by the fall oil prices and the impact on government revenue, depreciated by an average 1.62 percent in March from the previous month to 108.26 per U.S. dollar, the central bank said.
The kwanza has been depreciating since September 2014 and was trading at 109.19 to the dollar today, down 6.2 percent since the start of the year.
www.CentralBankNews.info
The National Bank of Angola, which raised its rate by 25 basis points on March 30, noted that inflation, as measured by the CPI of the capital of Luanda, was up by an annual 7.87 percent in March, up 0.13 percentage points from February, with food and non-alcoholic beverages the largest contributor to the increase.
Meanwhile, the stock of credit issued by banks reached 3.41 billion kwanza in March.
The exchange rate of the kwanza, which has been hit by the fall oil prices and the impact on government revenue, depreciated by an average 1.62 percent in March from the previous month to 108.26 per U.S. dollar, the central bank said.
The kwanza has been depreciating since September 2014 and was trading at 109.19 to the dollar today, down 6.2 percent since the start of the year.
www.CentralBankNews.info
Central Bank News Link List - Apr 27, 2015: Israel’s Flug tops central bankers with most rate surprises
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.
- Israel’s Flug tops central bankers with most rate surprises (Bloomberg)
- Greece’s governors agree to lend cash to central government (Reuters)
- Asian central banks to ease further, but effects may be muted: Reuters poll
- China swaps drop to 33-month low as PBOC seen ensuring liquidity (Bloomberg)
- RBNZ says rates to remain stimulatory as inflation nears zero (Bloomberg)
- ECB seen going all the way on QE as economists doubt taper (Bloomberg)
- Swiss central bank says Greek crises could cause franc rise (Reuters)
- Russian resistance to ruble surge signals rate plunge (Bloomberg)
- Thailand likely to keep policy rate on hold (Bangkok Post)
- How rice tariffs may force Colombian central bank raise rates (Bloomberg)
- Central bank of Russia looks set to cut interest rates further (FXWire)
- Bank Negara governor signals no need for rate cut in near future (Bloomberg)
- China doesn’t need strong stimulus: PBOC chief economist (Dow Jones)
- Abe adviser fears BOJ has den of conspirators opposing reflation (Bloomberg)
- Here’s why the RBA might hold off cutting interest rates in May (Motley Fool)
- RBI likely to cut interest rates again next month (Reuters)
- Why did Egypt’s central bank keep interest rates unchanged? (Cairo Post)
- Rivlin: Fed needs to focus on a different punch bowl (MarketWatch)
- Central bank of Azerbaijan says that its capital is under threat of loss (ABC)
- Taiwan central bank chief not interested in presidential bid: agency (Focus Taiwan)
- Nigerian central bank orders lenders to get tough with bad debtors (Reuters)
- Vietnam c.bank says taking over small lender (Reuters)
- Croatian central bank governor shrugs off calls to resign (Reuters)
Sunday, April 26, 2015
This week in monetary policy: Israel, Angola, Kyrgyzstan, Thailand, Sweden, U.S., Brazil, New Zealand, Japan, Fiji, Russia, Moldova and Mexico
This week (April 27 through May 2) central banks from 13 countries or jurisdictions are scheduled to decide on monetary policy: Israel, Angola, Kyrgyz Republic, Thailand, Sweden, the United States, Brazil, New Zealand, Japan, Fiji, Russia, Moldova and Mexico.
Following table includes the name of the country, its MSCI classification, the direction of the latest decision, the date the new policy decision will be announced, the current policy rate, and the rate one year ago.
The table is updated when the latest decisions are announced and can always accessed by clicking on This Week.
| WEEK 18 | |||||
| APR 27-MAY 2, 2015: | |||||
| COUNTRY | MSCI | LATEST | DATE | CURRENT RATE | 1 YEAR AGO |
| ISRAEL | DM | UNCH. | 27-Apr | 0.10% | 0.75% |
| ANGOLA | UNCH. | 27-Apr | 9.00% | 9.25% | |
| KYRGYZSTAN | UNCH. | 27-Apr | 11.00% | 6.00% | |
| THAILAND | EM | CUT | 29-Apr | 1.75% | 2.00% |
| SWEDEN | DM | CUT | 29-Apr | -0.25% | 0.75% |
| UNITED STATES | DM | UNCH. | 29-Apr | 0.25% | 0.25% |
| BRAZIL | EM | RAISE | 29-Apr | 12.75% | 11.00% |
| NEW ZEALAND | DM | UNCH. | 30-Apr | 3.50% | 3.00% |
| JAPAN | DM | UNCH. | 30-Apr | N/A | N/A |
| FIJI | UNCH. | 30-Apr | 0.50% | 0.50% | |
| RUSSIA | EM | CUT | 30-Apr | 14.00% | 7.50% |
| MOLDOVA | UNCH. | 30-Apr | 13.50% | 3.50% | |
| MEXICO | EM | UNCH. | 30-Apr | 3.00% | 3.50% |
Saturday, April 25, 2015
Ukraine holds rate, expects stable FX to lead to easing
Ukraine's central bank maintained its benchmark discount rate at 30.0 percent, citing the need to "reinforce positive trends in the money market," but added that stability to the hryvnia's exchange rate should pave the way for rate cuts.
The National Bank of Ukraine (NBU), which has raised its rate by 16 percentage points this year and by 23.50 points since April last year, said inflation in coming months will be affected by the opposing forces of higher administered prices and further rises in consumer prices against the disinflationary forces of a waning impact of exchange rate depreciation, tight monetary and fiscal policy and the elimination of inefficient energy subsidies.
"Further efforts to sustain stability in the foreign exchange market, which will help dispel adverse inflation and depreciation expectations, are crucial for putting inflation on a downward path," the NBU said in a statement from Friday.
Ukraine's consumer price inflation rate jumped to 45.8 percent in March from 34.5 percent in February, with the central bank attributing this to "substantial hryvnia exchange rate depreciation in late February 2015, and feverish consumer demand fueled by worsening expectations."
However, the NBU said a package of its measures, including rate increases and tighter administrative restrictions, helped stabilize the foreign exchange market and strengthen the hryvnia's exchange rate.
The real effective exchange rate of the hryvnia fell by 19.2 percent in 2014 and but in February this year the currency tumbled, hitting a low of 33.7 to the U.S. dollar on Feb. 26. before bouncing back and stabilizing between 21 and 23 to the dollar, helped by the central bank's latest rate increase on March 3 of 1,050 basis points.
On Friday the hryvnia was trading at 22.9 to the dollar, down 31 percent since the start of the year.
The National Bank of Ukraine (NBU), which has raised its rate by 16 percentage points this year and by 23.50 points since April last year, said inflation in coming months will be affected by the opposing forces of higher administered prices and further rises in consumer prices against the disinflationary forces of a waning impact of exchange rate depreciation, tight monetary and fiscal policy and the elimination of inefficient energy subsidies.
"Further efforts to sustain stability in the foreign exchange market, which will help dispel adverse inflation and depreciation expectations, are crucial for putting inflation on a downward path," the NBU said in a statement from Friday.
Ukraine's consumer price inflation rate jumped to 45.8 percent in March from 34.5 percent in February, with the central bank attributing this to "substantial hryvnia exchange rate depreciation in late February 2015, and feverish consumer demand fueled by worsening expectations."
However, the NBU said a package of its measures, including rate increases and tighter administrative restrictions, helped stabilize the foreign exchange market and strengthen the hryvnia's exchange rate.
The real effective exchange rate of the hryvnia fell by 19.2 percent in 2014 and but in February this year the currency tumbled, hitting a low of 33.7 to the U.S. dollar on Feb. 26. before bouncing back and stabilizing between 21 and 23 to the dollar, helped by the central bank's latest rate increase on March 3 of 1,050 basis points.
On Friday the hryvnia was trading at 22.9 to the dollar, down 31 percent since the start of the year.
Thursday, April 23, 2015
Egypt holds rate as low oil counters upside inflation risks
Egypt's central bank maintained its key policy rates, including the benchmark overnight deposit rate at 8.75 percent, as expected, saying upside risks to inflation are largely mitigated by contained imported inflation linked to lower oil prices.
The Central Bank of Egypt (CBE), which surprised financial markets by cutting its rate by 50 basis points in January, added that investments in mega projects, such as the Suez Canal, were expected to boost economic growth, softening growth in emerging markets and the challenges facing the euro area could pose downside risks to domestic economic activity.
Eqypt's consumer price inflation rate rose to 11.51 percent in March - a five-month high - from 10.56 percent in February mainly due to higher administered prices, particularly of tobacco, along with supply bottlenecks in the distribution of butane cylinders and an increase in volatile food prices.
The Central Bank of Egypt (CBE), which surprised financial markets by cutting its rate by 50 basis points in January, added that investments in mega projects, such as the Suez Canal, were expected to boost economic growth, softening growth in emerging markets and the challenges facing the euro area could pose downside risks to domestic economic activity.
Eqypt's consumer price inflation rate rose to 11.51 percent in March - a five-month high - from 10.56 percent in February mainly due to higher administered prices, particularly of tobacco, along with supply bottlenecks in the distribution of butane cylinders and an increase in volatile food prices.
Global lending dips in Q4 as China and Russia hit - BIS
Global cross-border lending dropped by $5 billion in the fourth quarter of 2014 as claims on borrowers in emerging markets, especially China and Russia, plunged by $80 billion while lending to advanced economies, such as the United Kingdom and the euro area, continued to recover, according to the Bank for International Settlements (BIS).
Lending by major international banks to China contracted by $51 billion by the end of December 2014 from the end of September, but outstanding claims on Chinese residents totaled $1 trillion, far exceeding those of other emerging market borrowers such as Brazil, with total claims of $308 billion, India of $196 billion and Turkey of $194 billion.
The surge in lending to China over the past few years has been driven primarily by short-term leading to banks - much of it in U.S. dollars - but authorities are now attempting to carry out a delicate balancing act of tightening credit conditions without disrupting economic growth.
The contraction in lending to China in the fourth quarter of last year comes after an increase of almost 40 percent between the end of September 2013 and September 2014. But from the second to the third quarter of 2014 claims rose only by 3 percent.
With the U.S. Federal Reserve likely to raise rates in coming months, there is concern that borrowers in emerging markets will face strains from higher debt repayments of loans in U.S dollars.
Although the dollar share of cross-border lending has declined for China to 39 percent at the end of 2014 from 54 percent at the end of 2008, it remains very high for other countries. At the end of 2014, dollar-denominated loans amounted to 78 percent of cross-border claims to Brazil, 74 percent of claims on India, 68 percent for Indonesia and 70 percent for Taiwan.
International lending to advanced economies continues to expand as their banking systems recover after the global financial crises, with claims on advanced economies up by $27 billion in the fourth quarter from the third quarter, helped by a 5 percent year-on-year rise in loans to the euro area and the U.K. and steady lending to the U.S.
Within the euro area, there are marked differences as loans to France rose by 12 percent annually, claims on Germany rose 8 percent and claims to Italy were up by 6 percent. Meanwhile, claims on Cyprus fell 8 percent, while annual claims on Portugal and Spain fell 4 percent and loans to Greece contracted by 3 percent.
Cross-border claims on Japan also continued to expand at a very rapid pace, growing at annual rate of 16 percent as of the end of 2014, with most of the growth in lending directed towards banks. The share of international claims on Japanese banks rose to 75 percent by the end of last year from 53 percent at the end of 2007.
Click to read the BIS international banking statistics at end-December 2014.
www.CentralBankNews.info
Lending by major international banks to China contracted by $51 billion by the end of December 2014 from the end of September, but outstanding claims on Chinese residents totaled $1 trillion, far exceeding those of other emerging market borrowers such as Brazil, with total claims of $308 billion, India of $196 billion and Turkey of $194 billion.
The surge in lending to China over the past few years has been driven primarily by short-term leading to banks - much of it in U.S. dollars - but authorities are now attempting to carry out a delicate balancing act of tightening credit conditions without disrupting economic growth.
The contraction in lending to China in the fourth quarter of last year comes after an increase of almost 40 percent between the end of September 2013 and September 2014. But from the second to the third quarter of 2014 claims rose only by 3 percent.
With the U.S. Federal Reserve likely to raise rates in coming months, there is concern that borrowers in emerging markets will face strains from higher debt repayments of loans in U.S dollars.
Although the dollar share of cross-border lending has declined for China to 39 percent at the end of 2014 from 54 percent at the end of 2008, it remains very high for other countries. At the end of 2014, dollar-denominated loans amounted to 78 percent of cross-border claims to Brazil, 74 percent of claims on India, 68 percent for Indonesia and 70 percent for Taiwan.
International lending to advanced economies continues to expand as their banking systems recover after the global financial crises, with claims on advanced economies up by $27 billion in the fourth quarter from the third quarter, helped by a 5 percent year-on-year rise in loans to the euro area and the U.K. and steady lending to the U.S.
Within the euro area, there are marked differences as loans to France rose by 12 percent annually, claims on Germany rose 8 percent and claims to Italy were up by 6 percent. Meanwhile, claims on Cyprus fell 8 percent, while annual claims on Portugal and Spain fell 4 percent and loans to Greece contracted by 3 percent.
Cross-border claims on Japan also continued to expand at a very rapid pace, growing at annual rate of 16 percent as of the end of 2014, with most of the growth in lending directed towards banks. The share of international claims on Japanese banks rose to 75 percent by the end of last year from 53 percent at the end of 2007.
Click to read the BIS international banking statistics at end-December 2014.
www.CentralBankNews.info
Wednesday, April 22, 2015
Central Bank News Link List - Apr 22, 2015: Pound jumps as BOE minority sees rate decision ‘finely balanced’
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.
- Pound jumps as BOE minority sees rate decision ‘finely balanced’ (Bloomberg)
- No Bank of England rate rise until early 2016: Reuters poll
- China could go more for monetary easing policies: official (PTI)
- Russian central bank says ruble’s recovery over for now (Reuters)
- BOJ to keep policy steady April 30 unless big CPI forecast cut-sources (Reuters)
- Low inflation data adds to Australia interest rate cut chances (Business Spectator)
- CPI bets above 6% keeps pressure on South African Reserve Bank (Bloomberg)
- Here's why this Fed president thinks inflation is about to rebound (Bloomberg)
- Fed rate riot pending if history to investor tantrums is a guide (Bloomberg)
- ECB increases emergency aid for Greece banks by E1.5B – press (MNI)
- SNB reduces exemptions from negative interest rates (Reuters)
- BNP executive tipped as front-runner to head Bank of France (Reuters)
- Thai Q1 economy likely contracted q-on-q: central bank (Reuters)
- Malaysian ringgit undervalued: central bank (Straits Times)
- Hungary’s central bank expands cheap-loan program (WSJ)
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