The Central Bank of the Dominican Republic (BCRD) kept its monetary policy rate at 5.50 percent, saying inflation is projected to converge to the target range in the policy horizon.
BCRD has maintained its rate since raising it by 50 basis points in October last year in a preventative move reflecting inflation, the expected rate hike by the U.S. Federal Reserve, the trend toward higher oil prices and uncertainty in international financial markets.
Inflation rose to 1.7 percent in December from 0.88 percent in November while underlying inflation was 1.89 percent, the central bank said.
BCRD targets inflation of 4.0 percent, plus/minus 1 percentage point.
Economic activity in the Dominican Republic expanded by 6.6 percent in 2016, the highest in the region for the third year running, the central bank said, adding that credit of the total financial system to the private sector, both domestic and foreign currency, grew by 11.9 percent at the end of 2016.
In addition the current account deficit narrowed to 1.5 percent of Gross Domestic Product, the smallest in the last decade, helped by tourism, remittances and national exports.
Gross International Reserves ended at a historically high level of US$6.047.4 billion, the equivalent of 3.9 months of imports, helping stabilize the foreign exchange market.
The Dominican peso has been slowly and steadily depreciating since 2007 and was trading at 46.6 to the U.S. dollar today, down from 46.18 at the start of the year.
www.CentralBankNews.info
Tuesday, January 31, 2017
Angola keeps key rate steady while inflation accelerates
Angola's central bank left its benchmark BNA rate seasonal effects at 16.0 percent, again saying it is paying particular attention to the rise in inflation, which it attributed to seasonal factors.
The National Bank of Angola (BNA), which raised its rate 500 basis points last year - most recently in June - to curb inflation, added its monetary policy committee had also taken note of the trend of declining monetary indicators.
Angola's inflation rate rose to 41.95 percent in December - the highest since June 2004 - from 41.15 percent in November, with prices for food and non-alcoholic beverages, miscellaneous goods, and apparel and footwear contributing most to the rise in inflation.
Angola's inflation rate has been accelerating since early 2015 as the fall in crude oil prices hit government revenue and foreign exchange earnings, weakening the kwanza.
The central bank has devalued the kwanza several times in recent years and has been quoting the kwanza at around 165 per U.S. dollar since mid-April 2016.
In January 20916 the central bank let the kwanza ease to around 155 from around 135, the rate it had targeted since September 2015.
Angola's LUIBOR overnight rate, also rose to 23.35 percent from 22.65 percent while credit to the economy in December rose by 1.62 percent.
But the restricted monetary base contracted by 2.82 percent in December while the M2 aggregate fell by 0.15 percent for an annual rise of 13.03 percent, the BNA said.
The central bank added that commercial banks acquired $US1.947 billion on the foreign exchange market in December, of which $1.486 was from the BNA, an annual rise of 49.31 percent.
Angola's banks last week asked the government for financial assistance due to liquidity shortage amid rising bad debts, slowing business and lower government spending.
Revenue from oil accounts for almost all Angola's foreign exchange earnings and the fall in crude oil prices since mid-2014 has curtailed economic activity.
www.CentralBankNews.info
The National Bank of Angola (BNA), which raised its rate 500 basis points last year - most recently in June - to curb inflation, added its monetary policy committee had also taken note of the trend of declining monetary indicators.
Angola's inflation rate rose to 41.95 percent in December - the highest since June 2004 - from 41.15 percent in November, with prices for food and non-alcoholic beverages, miscellaneous goods, and apparel and footwear contributing most to the rise in inflation.
Angola's inflation rate has been accelerating since early 2015 as the fall in crude oil prices hit government revenue and foreign exchange earnings, weakening the kwanza.
The central bank has devalued the kwanza several times in recent years and has been quoting the kwanza at around 165 per U.S. dollar since mid-April 2016.
In January 20916 the central bank let the kwanza ease to around 155 from around 135, the rate it had targeted since September 2015.
Angola's LUIBOR overnight rate, also rose to 23.35 percent from 22.65 percent while credit to the economy in December rose by 1.62 percent.
But the restricted monetary base contracted by 2.82 percent in December while the M2 aggregate fell by 0.15 percent for an annual rise of 13.03 percent, the BNA said.
The central bank added that commercial banks acquired $US1.947 billion on the foreign exchange market in December, of which $1.486 was from the BNA, an annual rise of 49.31 percent.
Angola's banks last week asked the government for financial assistance due to liquidity shortage amid rising bad debts, slowing business and lower government spending.
Revenue from oil accounts for almost all Angola's foreign exchange earnings and the fall in crude oil prices since mid-2014 has curtailed economic activity.
www.CentralBankNews.info
Monday, January 30, 2017
Japan maintains policy, revises upward growth forecast
Japan's central bank maintained its monetary policy stance, including its commitment to controlling the yield curve, but upgraded its growth forecast as it expects the economy to continue to expand at a pace that is above its potential through fiscal 2018, which ends in April 2019.
The Bank of Japan (BOJ), which in September 2016 shifted the focus of its policy of quantitative easing toward "yield curve control" to reach its 2 percent inflation target, maintained its inflation forecast but cautioned that momentum toward the reaching the target is not "sufficiently firm, and thus developments in prices continue to warrant careful attention."
"Comparing the current projections with the previous ones, the projected growth rates are somewhat higher, mainly reflecting improvement in overseas economies and the yen's deprecation," the BOJ said.
The BOJ raised its forecast for Gross Domestic Product growth in the current fiscal year to an average of 1.4 percent from 1.0 percent forecast in October last year. For fiscal 2017 growth is expected to accelerate further to 1.5 percent from a previous 1.3 percent but then decelerate to 1.1 percent in fiscal 2018, up from 0.9 percent.
Japan's potential growth rate is estimated to be around 0.5 percent and in the third quarter of 2016 GDP expanded by an annual rate of 1.1 percent, up from 0.9 percent in the second quarter.
"With regard to the outlook, Japan's economy is likely to turn to a moderate expansion," the BOJ said, adding that domestic demand is rising due to the government's large-scale stimulus measures and its own highly accommodative policy.
Investments are likely to maintain the "moderate increasing trend," helped by higher growth expectations and spending in connection with the Olympic Games in 2020.
Growth in overseas economies is also expected to rise moderately as advanced economies continue to grow and a recovery in emerging economies gradually takes hold, supporting Japan's exports.
Helped by higher energy prices, the BOJ expects consumer price inflation to rise from around 0 percent and become slightly positive and then rise toward 2 percent as the output gap improves and inflation expectations rise.
"The timing of the year-on-year rate of change in the CPI reaching around 2 percent will likely be at the end of the projection period -- that is, around fiscal 2018," BOJ said.
Japan's inflation rate, all items less fresh food, is seen averaging minus 0.2 percent in the current fiscal year, which ends April 1, slightly lower than minus 0.1 percent seen in October.
For fiscal 2017 inflation is seen rising to 1.5 percent, the same as forecast in October, and then accelerate further to 1.7 percent, unchanged from October.
Japan's headline inflation rate eased to 0.3 percent in December from 0.5 percent in November while the core inflation rate fell by 0.2 percent, up from a fall of 0.4 percent in November.
Japan's yen began depreciating in October 2012 and hit a low of just below 125 to the U.S. dollar in June 2015. It then bounced back until August 2016 before again easing.
This year it has firmed slightly and was trading at 113.3 to the dollar today, up 3.3 percent since the start of this year.
The BOJ maintained its interest rate of minus 0.10 percent on banks' deposits that exceed reserve requirements and will continue purchasing government bonds around its current pace of around 80 trillion yen in order to keep 10-year yields around 0 percent.
In addition, the BOJ will purchase exchange-traded funds (ETFs) and real estate investment trusts so their outstanding amount rise by an annual pace of about 6 trillion yen and about 90 billion yen, respectively.
The BOJ will also continue purchasing commercial paper and corporate bonds at a pace of about 2.2 trillion and 3.2 trillion yen, respectively.
www.CentralBankNews.info
The Bank of Japan (BOJ), which in September 2016 shifted the focus of its policy of quantitative easing toward "yield curve control" to reach its 2 percent inflation target, maintained its inflation forecast but cautioned that momentum toward the reaching the target is not "sufficiently firm, and thus developments in prices continue to warrant careful attention."
"Comparing the current projections with the previous ones, the projected growth rates are somewhat higher, mainly reflecting improvement in overseas economies and the yen's deprecation," the BOJ said.
The BOJ raised its forecast for Gross Domestic Product growth in the current fiscal year to an average of 1.4 percent from 1.0 percent forecast in October last year. For fiscal 2017 growth is expected to accelerate further to 1.5 percent from a previous 1.3 percent but then decelerate to 1.1 percent in fiscal 2018, up from 0.9 percent.
Japan's potential growth rate is estimated to be around 0.5 percent and in the third quarter of 2016 GDP expanded by an annual rate of 1.1 percent, up from 0.9 percent in the second quarter.
"With regard to the outlook, Japan's economy is likely to turn to a moderate expansion," the BOJ said, adding that domestic demand is rising due to the government's large-scale stimulus measures and its own highly accommodative policy.
Investments are likely to maintain the "moderate increasing trend," helped by higher growth expectations and spending in connection with the Olympic Games in 2020.
Growth in overseas economies is also expected to rise moderately as advanced economies continue to grow and a recovery in emerging economies gradually takes hold, supporting Japan's exports.
Helped by higher energy prices, the BOJ expects consumer price inflation to rise from around 0 percent and become slightly positive and then rise toward 2 percent as the output gap improves and inflation expectations rise.
"The timing of the year-on-year rate of change in the CPI reaching around 2 percent will likely be at the end of the projection period -- that is, around fiscal 2018," BOJ said.
Japan's inflation rate, all items less fresh food, is seen averaging minus 0.2 percent in the current fiscal year, which ends April 1, slightly lower than minus 0.1 percent seen in October.
For fiscal 2017 inflation is seen rising to 1.5 percent, the same as forecast in October, and then accelerate further to 1.7 percent, unchanged from October.
Japan's headline inflation rate eased to 0.3 percent in December from 0.5 percent in November while the core inflation rate fell by 0.2 percent, up from a fall of 0.4 percent in November.
Japan's yen began depreciating in October 2012 and hit a low of just below 125 to the U.S. dollar in June 2015. It then bounced back until August 2016 before again easing.
This year it has firmed slightly and was trading at 113.3 to the dollar today, up 3.3 percent since the start of this year.
The BOJ maintained its interest rate of minus 0.10 percent on banks' deposits that exceed reserve requirements and will continue purchasing government bonds around its current pace of around 80 trillion yen in order to keep 10-year yields around 0 percent.
In addition, the BOJ will purchase exchange-traded funds (ETFs) and real estate investment trusts so their outstanding amount rise by an annual pace of about 6 trillion yen and about 90 billion yen, respectively.
The BOJ will also continue purchasing commercial paper and corporate bonds at a pace of about 2.2 trillion and 3.2 trillion yen, respectively.
www.CentralBankNews.info
UPDATE-2017 calendar for central banks' monetary policy meetings
(UPDATE - The calendar for 2017 has been updated with monetary policy meetings by the Central Bank of the Republic of Turkey)
Following is the 2017 calendar for meetings by central bank committees that decide monetary policy.
The table includes scheduled meetings for more than 40 of the world's central banks. In the event that meetings by monetary policy committees take place over several days, the date listed below is for the final day when decisions are normally announced.
Readers are encouraged to regularly check this page for updates.
The calendar is updated regularly to reflect the latest information as some central banks have yet to release their meeting schedule for 2017.
Other central banks only release tentative schedules for the year and then finalize the calendar as the meeting nears. Other central banks only announce monetary policy meetings shortly before they are held while some central banks don't announce when a review of monetary policy will be held.
Following is the 2017 calendar for meetings by central bank committees that decide monetary policy.
The table includes scheduled meetings for more than 40 of the world's central banks. In the event that meetings by monetary policy committees take place over several days, the date listed below is for the final day when decisions are normally announced.
Readers are encouraged to regularly check this page for updates.
The calendar is updated regularly to reflect the latest information as some central banks have yet to release their meeting schedule for 2017.
Other central banks only release tentative schedules for the year and then finalize the calendar as the meeting nears. Other central banks only announce monetary policy meetings shortly before they are held while some central banks don't announce when a review of monetary policy will be held.
Work is underway to expand the number of central banks covered, including expanding the existing inflation targets table, and global interest rates table. You may replicate the table in part or in full only if you link to this page.
| DATE | FX CODE | COUNTRY | CENTRAL BANK |
| JANUARY | |||
| 3-Jan | ARS | Argentina | Central Bank of Argentina |
| 6-Jan | RON | Romania | National Bank of Romania |
| 9-Jan | KZT | Kazakhstan | National Bank of Kazakhstan |
| 10-Jan | ARS | Argentina | Central Bank of Argentina |
| 10-Jan | HNL | Honduras | Central Bank of Honduras |
| 11-Jan | PLN | Poland | National Bank of Poland |
| 11-Jan | BRL | Brazil | Central Bank of Brazil |
| 12-Jan | RSD | Serbia | National Bank of Serbia |
| 12-Jan | PEN | Peru | Central Reserve Bank of Peru |
| 13-Jan | KRW | South Korea | Bank of Korea |
| 17-Jan | ARS | Argentina | Central Bank of Argentina |
| 18-Jan | CAD | Canada | Bank of Canada |
| 19-Jan | MYR | Malaysia | Central Bank of Malaysia |
| 19-Jan | IDR | Indonesia | Bank Indonesia |
| 19-Jan | EUR | Euro area | European Central Bank |
| 19-Jan | CLP | Chile | Central Bank of Chile |
| 23-Jan | ILS | Israel | Bank of Israel |
| 23-Jan | GHS | Ghana | Bank of Ghana |
| 24-Jan | TRY | Turkey | Central Bank of Republic of Turkey |
| 24-Jan | HUF | Hungary | Central Bank of Hungary |
| 24-Jan | ZAR | South Africa | South African Reserve Bank |
| 24-Jan | NGN | Nigeria | Central Bank of Nigeria |
| 24-Jan | ARS | Argentina | Central Bank of Argentina |
| 24-Jan | PYG | Paraguay | Central Bank of Paraguay |
| 25-Jan | GEL | Georgia | National Bank of Georgia |
| 26-Jan | UAH | Ukraine | National Bank of Ukraine |
| 26-Jan | MDL | Moldova | National Bank of Moldova |
| 26-Jan | FJD | Fiji | Reserve Bank of Fiji |
| 27-Jan | COP | Colombia | Central Bank of Colombia |
| 27-Jan | TTD | Trinidad and Tobago | Central Bank of Trinidad and Tobago |
| 28-Jan | PKR | Pakistan | State Bank of Pakistan |
| 29-Jan | BDT | Bangladesh | Bangladesh Bank |
| 30-Jan | KES | Kenya | Central Bank of Kenya |
| 30-Jan | AOA | Angola | Bank of Angola |
| 31-Jan | JPY | Japan | Bank of Japan |
| 28-Jan | BGN | Bulgaria | Bulgarian National Bank |
| 31-Jan | ARS | Argentina | Central Bank of Argentina |
| 31-Jan | DOP | Dominican Republic | Central Bank of the Dominican Rep. |
Kenya holds rate, still to early to asses impact of rate cap
Kenya's central bank maintained its Central Bank Rate (CBR) at 10.0 percent to anchor inflation expectations, saying inflation was expected to remain within its target range in the short term but there are "increased uncertainties with regard to the prevailing drought conditions and risks in the global markets.
The Central Bank of Kenya (CBK), which cut its rate by 150 basis points in 2016, noted inflation eased to 6.4 percent in December from 6.7 percent in November, partly reflecting the waning effect of December 2015's excise tax rise.
And while there are no demand pressures in the economy, the CBK said food inflation remains elevated due to unusually dry weather, with food and electricity prices expected to remain elevated in the near term.
While the economy was "robust" in the third quarter of 2016, the central bank said it still couldn't determine the impact of the government's decision to impose a cap on banks' lending and deposit rates as banks were reviewing their business models to improve their resilience in the new situation.
As of Sept. 14, last year lending and deposit rates at Kenya's banks were capped at 4 percentage points above the central bank's CBK rate.
Kenya's government imposed the cap to boost local lending, but it has been heavily criticized amid fears that it could unnerve investors and lead to a shift into foreign currencies.
Local banks also criticized the limit, saying credit may dry up if they can't price loans according to risks, and the International Monetary Fund (IMF) last November expressed its concern over the measure, saying experience from other countries shows rate controls are ineffective, give rise to unintended negative consequences, can lead to lower economic growth, undermine efforts to reduce poverty and the effectiveness of monetary policy.
Following its warnings about the cap, the IMF last week explicitly asked Kenya's Treasury to remove the interest rate caps on banks, saying it posed a risk to financial stability and had reduced access to credit and thus economic growth.
The IMF's statement was released after its executive board completed the first review of Kenya's performance under its current stand-by support program.
After a sharp fall in early January, Kenya's shilling has remained relatively stable in recent weeks with the CBK saying it was supported by a narrowing of the current account deficit to an estimated 5.5 percent of Gross Domestic Product in 2016 from 6.8 percent in 2015.
The shilling was trading at 104 to the U.S. dollar today, down 1.7 percent this year.
In the third quarter Kenya's economy grew by an annual rate of 5.7 percent, down from 6.0 percent in the second quarter while the central bank's foreign exchange reserves declined to US$6.936 billion from $7.305 billion as of last November.
The Central Bank of Kenya (CBK), which cut its rate by 150 basis points in 2016, noted inflation eased to 6.4 percent in December from 6.7 percent in November, partly reflecting the waning effect of December 2015's excise tax rise.
And while there are no demand pressures in the economy, the CBK said food inflation remains elevated due to unusually dry weather, with food and electricity prices expected to remain elevated in the near term.
While the economy was "robust" in the third quarter of 2016, the central bank said it still couldn't determine the impact of the government's decision to impose a cap on banks' lending and deposit rates as banks were reviewing their business models to improve their resilience in the new situation.
As of Sept. 14, last year lending and deposit rates at Kenya's banks were capped at 4 percentage points above the central bank's CBK rate.
Kenya's government imposed the cap to boost local lending, but it has been heavily criticized amid fears that it could unnerve investors and lead to a shift into foreign currencies.
Local banks also criticized the limit, saying credit may dry up if they can't price loans according to risks, and the International Monetary Fund (IMF) last November expressed its concern over the measure, saying experience from other countries shows rate controls are ineffective, give rise to unintended negative consequences, can lead to lower economic growth, undermine efforts to reduce poverty and the effectiveness of monetary policy.
Following its warnings about the cap, the IMF last week explicitly asked Kenya's Treasury to remove the interest rate caps on banks, saying it posed a risk to financial stability and had reduced access to credit and thus economic growth.
The IMF's statement was released after its executive board completed the first review of Kenya's performance under its current stand-by support program.
After a sharp fall in early January, Kenya's shilling has remained relatively stable in recent weeks with the CBK saying it was supported by a narrowing of the current account deficit to an estimated 5.5 percent of Gross Domestic Product in 2016 from 6.8 percent in 2015.
The shilling was trading at 104 to the U.S. dollar today, down 1.7 percent this year.
In the third quarter Kenya's economy grew by an annual rate of 5.7 percent, down from 6.0 percent in the second quarter while the central bank's foreign exchange reserves declined to US$6.936 billion from $7.305 billion as of last November.
Sunday, January 29, 2017
Bangladesh holds rates, sees over 7% growth in FY17
Bangladesh Bank (BB) maintained its two key policy rates to support growth and mitigate inflation risks, and forecast that economic growth in the current 2017 fiscal year would exceed 7 percent while inflation would be within a range of 5.3 to 5.6 percent in June 2017.
The central bank of Bangladesh cut its two policy rates, the repo and reverse repo, to their current levels of 4.75 and 6.75 percent in January 2016.
In its monetary policy statement for the second half of 2016/17, which began in January, BB forecast broad money and private sector credit growth targets of 15.5 percent and 16.5 percent, respectively, by June 2017.
This is in line with private sector credit growth of 15-16 percent in first half of 2016/17, three-year high levels with strong demand from trade, construction and small and medium enterprises.
In calendar 2016 Gross Domestic Product in Bangladesh grew by an all-time high of 7.11 percent, up from 6.55 percent in 2015. BB has projected growth of 7.2 percent for 2016/17.
Consumer price inflation in Bangladesh decelerated to 5.03 percent in December from 5.38 percent in November, pulling down the annual average to 5.5 percent, just under the inflation ceiling of 5.8 percent.
But core inflation, which excludes food and fuel, remains elevated at around 7.6 percent in December, "indicating inflation can pick up if buffeted by adverse shocks," BB said.
"Looking ahead, the global commodity outlook suggests some upward price pressures may emerge from higher import prices," the central bank added.
In the June-November 2016 period, average lending and deposit rates declined by 45 and 25 basis points to 9.94 percent and 5.29 percent, respectively, reflecting favorable inflation, ample liquidity and an increase in competition in the banking system, BB said.
The central bank of Bangladesh cut its two policy rates, the repo and reverse repo, to their current levels of 4.75 and 6.75 percent in January 2016.
In its monetary policy statement for the second half of 2016/17, which began in January, BB forecast broad money and private sector credit growth targets of 15.5 percent and 16.5 percent, respectively, by June 2017.
This is in line with private sector credit growth of 15-16 percent in first half of 2016/17, three-year high levels with strong demand from trade, construction and small and medium enterprises.
In calendar 2016 Gross Domestic Product in Bangladesh grew by an all-time high of 7.11 percent, up from 6.55 percent in 2015. BB has projected growth of 7.2 percent for 2016/17.
Consumer price inflation in Bangladesh decelerated to 5.03 percent in December from 5.38 percent in November, pulling down the annual average to 5.5 percent, just under the inflation ceiling of 5.8 percent.
But core inflation, which excludes food and fuel, remains elevated at around 7.6 percent in December, "indicating inflation can pick up if buffeted by adverse shocks," BB said.
"Looking ahead, the global commodity outlook suggests some upward price pressures may emerge from higher import prices," the central bank added.
In the June-November 2016 period, average lending and deposit rates declined by 45 and 25 basis points to 9.94 percent and 5.29 percent, respectively, reflecting favorable inflation, ample liquidity and an increase in competition in the banking system, BB said.
Saturday, January 28, 2017
This week in monetary policy: Bangladesh, Kenya, Angola, Japan, Bulgaria, Argentina, Dominican Rep., USA, Czech Rep., U.K., and Russia
This week (January 29 through February 3) central banks from 11 countries or
jurisdictions are scheduled to decide on monetary policy: Bangladesh, Kenya, Angola, Japan, Bulgaria, Argentina, Dominican Republic, United States, Czech Republic, United Kingdom and Russia.
Following table includes the name of the country, the date of the next policy
decision, the current policy rate, the result of the last policy decision, the
change in the policy rate year to date, the rate one year ago, and the
country’s MSCI classification.
The
table is updated when the latest decisions are announced and can always
accessed by clicking on This Week.
| WEEK 5 | ||||||
| JAN 29 - FEB 3, 2017: | ||||||
| COUNTRY | DATE | RATE | LATEST | YTD | 1 YR AGO | MSCI |
| BANGLADESH | 29-Jan | 6.75% | 0 | 0 | 6.75% | FM |
| KENYA | 30-Jan | 10.00% | 0 | 0 | 11.50% | FM |
| ANGOLA | 30-Jan | 16.00% | 0 | 0 | 11.00% | |
| JAPAN | 31-Jan | -0.10% | 0 | 0 | -0.10% | DM |
| BULGARIA | 31-Jan | 0.00% | 0 | 0 | 0.00% | FM |
| ARGENTINA | 31-Jan | 4.75% | 0 | 0 | 4.75% | EM |
| DOMINICAN REP. | 31-Jan | 5.50% | 0 | 0 | 5.50% | |
| UNITED STATES | 1-Feb | 0.75% | 25 | 0 | 0.50% | DM |
| CZECH REPUBLIC | 2-Feb | 0.05% | 0 | 0 | 0.05% | EM |
| UNITED KINGDOM | 2-Feb | 0.25% | 0 | 0 | 0.50% | DM |
| RUSSIA | 3-Feb | 10.00% | 0 | 0 | 11.00% | EM |
Pakistan maintains rate, expects below-target inflation
Pakistan's central bank maintained its policy rate at 5.75 percent, as expected, citing a healthy expansion of credit, upbeat sentiment among businesses, a stable exchange rate and lower-than-expected inflation.
The State Bank of Pakistan (SBP), which cut its rate by 25 basis points last year but left the rate steady at its last policy decision in November, said current trends point to inflation in the current fiscal year, which began on July 1, 2016, remaining below the target of 6.0 percent.
Pakistan's inflation rate eased to 3.7 percent in December from 3.81 percent in November while the Pakistani rupee was trading at 104.8 to the U.S. dollar, slightly weaker than 104.3 at the start of 2017 and steady from 104.9 at the start of 2016.
The SBP also said large-scale manufacturing had expanded by 3.2 percent in the first five months of the 2017 fiscal year and is expected to grow further due to growing infrastructure spending and policy support for export-oriented sectors.
The private sector borrowed 375 billion rupees in the first half of the fiscal year, up from 282.6 billion in the same year-ago period, to upgrade and expand their businesses, and demand for consumer financing, especially auto loans, had also gathered pace, the central bank said.
But growing imports in connection with the China-Pakistan Economic Corridor (CPEC), lower exports, a slowdown in remittances and the absence of U.S. assistance through the Coalition Support Fund led to an increase in the current account deficit to 2.2 percent of Gross Domestic Product in the first half from 1.3 percent last year.
"Going forward, with the aforementioned risks to the external sector, the need of financial inflows would grow further," the SBP said.
The State Bank of Pakistan (SBP), which cut its rate by 25 basis points last year but left the rate steady at its last policy decision in November, said current trends point to inflation in the current fiscal year, which began on July 1, 2016, remaining below the target of 6.0 percent.
Pakistan's inflation rate eased to 3.7 percent in December from 3.81 percent in November while the Pakistani rupee was trading at 104.8 to the U.S. dollar, slightly weaker than 104.3 at the start of 2017 and steady from 104.9 at the start of 2016.
The SBP also said large-scale manufacturing had expanded by 3.2 percent in the first five months of the 2017 fiscal year and is expected to grow further due to growing infrastructure spending and policy support for export-oriented sectors.
The private sector borrowed 375 billion rupees in the first half of the fiscal year, up from 282.6 billion in the same year-ago period, to upgrade and expand their businesses, and demand for consumer financing, especially auto loans, had also gathered pace, the central bank said.
But growing imports in connection with the China-Pakistan Economic Corridor (CPEC), lower exports, a slowdown in remittances and the absence of U.S. assistance through the Coalition Support Fund led to an increase in the current account deficit to 2.2 percent of Gross Domestic Product in the first half from 1.3 percent last year.
"Going forward, with the aforementioned risks to the external sector, the need of financial inflows would grow further," the SBP said.
Friday, January 27, 2017
UPDATE-This week in monetary policy: Israel, Ghana, Turkey, Hungary, South Africa, Nigeria, Argentina, Paraguay, Georgia, Ukraine, Moldova, Fiji, Colombia, Trinidad & Tobago and Pakistan
(The following item has been updated with a monetary policy decision by the State Bank of Pakistan on Jan. 28. In addition, Central Bank News' calendar with central banks' policy meetings has been updated with a meeting by the central bank of Bangladesh on Sunday, Jan. 29.)
This week (January 22 through January 28) central banks from 15 countries or
jurisdictions are scheduled to decide on monetary policy: Israel, Ghana, Turkey, Hungary, South Africa, Nigeria, Argentina, Paraguay, Georgia, Ukraine, Moldova, Fiji, Colombia, Trinidad & Tobago and Pakistan.
Following table includes the name of the country, the date of the next policy
decision, the current policy rate, the result of the last policy decision, the
change in the policy rate year to date, the rate one year ago, and the
country’s MSCI classification.
The
table is updated when the latest decisions are announced and can always
accessed by clicking on This Week.
| WEEK 4 | ||||||
| JAN 22 - JAN 28, 2017: | ||||||
| COUNTRY | DATE | RATE | LATEST | YTD | 1 YR AGO | MSCI |
| ISRAEL | 23-Jan | 0.10% | 0 | 0 | 0.10% | DM |
| GHANA | 23-Jan | 25.50% | 0 | 0 | 26.00% | |
| TURKEY | 24-Jan | 8.00% | 0 | 0 | 7.50% | EM |
| HUNGARY | 24-Jan | 0.90% | 0 | 0 | 1.35% | EM |
| SOUTH AFRICA | 24-Jan | 7.00% | 0 | 0 | 6.75% | EM |
| NIGERIA | 24-Jan | 14.00% | 0 | 0 | 11.00% | FM |
| ARGENTINA | 24-Jan | 24.75% | 0 | 0 | 36.75% | FM |
| PARAGUAY | 24-Jan | 5.50% | 0 | 0 | 6.00% | |
| GEORGIA | 25-Jan | 6.75% | 25 | 0 | 8.00% | |
| UKRAINE | 26-Jan | 14.00% | 0 | 0 | 22.00% | FM |
| FIJI | 26-Jan | 0.50% | 0 | 0 | 0.50% | |
| MOLDOVA | 27-Jan | 9.00% | 0 | 0 | 19.50% | |
| COLOMBIA | 27-Jan | 7.50% | -25 | 0 | 6.00% | EM |
| TRINIDAD & TOBAGO | 27-Jan | 4.75% | 0 | 0 | 4.75% | EM |
| PAKISTAN | 28-Jan | 5.75% | 0 | 0 | 6.00% | FM |
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