Highlights

    Central Bank News' Global Monetary Policy Highlights (GMPH) provides readers with a list of key events in global monetary policy, such as new policy initiatives, a switch in policy bias, key rate changes or important speeches and papers. The aim is to give readers a guide to the evolution of global monetary policy as practiced by the 90 central banks covered by Central Bank News.
    GMPH includes a summary of each month’s total rate cuts and rate rises with a list of the central banks that changed rates that month plus the global monetary policy rate (GMPR), the average policy rate by the 90 central banks followed by Central Bank News.
    GMPH can be viewed in conjunction with Central Bank News’ other regular features: the Global Interest Rate Monitor (GIRM) and the Monetary Policy Week in Review.  Please email us if you have any comments on our selection of events at centralbanknews@yahoo.com
                                                 =======================


FEBRUARY  2017

TOTAL RATE CUTS: 550 points
RATE CUTS: Belarus, Armenia, Macedonia, Uganda, Kazakhstan, Zambia, Brazil and Colombia
TOTAL RATE RISES: 250 points
RATE RISES: Tajikistan, Mexico and Jordan

GLOBAL MONETARY POLICY RATE (GMPR): 6.27 percent


JANUARY  2017


TOTAL RATE CUTS:  225 points

RATE CUTS: Belarus, Macedonia, Brazil and Chile
TOTAL RATE RISES: 725 points
RATE RISES: Congo and Georgia

GLOBAL MONETARY POLICY RATE (GMPR): 6.30 percent


KEY EVENTS:


    The Central Bank of Brazil on Jan. 11 cut its benchmark Selic rate by a larger-than-expected 75 basis points to 13.0 percent, saying it is frontloading monetary easing due to widespread disinflation and weaker-than-expected economic activity. The central bank added that further rate cuts and possible changes to the pace of easing would continue to depend on inflation.





DECEMBER 2016

TOTAL RATE CUTS:  325 points

RATE CUTS: Uganda, Iceland, Colombia, Bahamas, Kyrgyzstan, Macedonia, Armenia and Rwanda
TOTAL RATE RISES: 325 points
RATE RISES: West African States (marginal lending rate raised), United States, Kuwait, Bahrain, Saudi Arabia, UAE, Qatar, Hong Kong and Mexico

GLOBAL MONETARY POLICY RATE (GMPR): 6.11 percent

KEY EVENTS:


The U.S. Federal Reserve on Dec. 14 raises its federal funds rate by 25 basis points to 0.75 percent, as widely expected, and forecast that it would raise its rate another three times in 2017, an increase from September when it forecast only two rate hikes. The Fed said the decision to raise the rate was “in view of realized and expected labor market conditions.”


The European Central Bank (ECB) on Dec. 8 extends its asset purchase program until the end of December 2017 from the end of March 2017 but reduces monthly purchases to 60 billion euros from 80 billion. ECB also broadens the maturity range of public sector bonds that it will purchase by lowering the maturity to one year from two years, and will buy bonds that have a yield below the ECB’s deposit rate of minus 0.40 percent.




NOVEMBER 2016

TOTAL RATE CUTS:  525 points

RATE CUTS: New Zealand, Kazakhstan, Armenia, Ghana, Malawi, Kyrgyz Republic and Brazil
TOTAL RATE RISES: 100 points
RATE RISES: Mexico and Turkey

GLOBAL MONETARY POLICY RATE (GMPR): 6.11 percent


OCTOBER 2016

TOTAL RATE CUTS:  375 points
RATE CUTS: Kazakhstan, India, Uganda, Brazil, Indonesia, Ukraine and Moldova
TOTAL RATE RISES: 1050 points
RATE RISES: Sierra Leone , Mozambique, Dominican Republic and Egypt

GLOBAL MONETARY POLICY RATE (GMPR): 6.16 percent


SEPTEMBER 2016



TOTAL RATE CUTS:  300 points
RATE CUTS: Georgia, Ukraine, Russia, Kenya, Indonesia, Armenia and Moldova
TOTAL RATE RISES: 60 points
RATE RISES: Azerbaijan and Mexico
GLOBAL MONETARY POLICY RATE (GMPR): 6.07 percent



AUGUST 2016

TOTAL RATE CUTS:  500 points

RATE CUTS: Australia, United Kingdom, Uganda, New Zealand, Botswana, Armenia, Iceland and Belarus
TOTAL RATE RISES: 700 points
RATE RISES: Mongolia and Azerbijan

GLOBAL MONETARY POLICY RATE (GMPR): 6.04 percent


KEY EVENTS:


    The Bank of England on August 4 cut its Bank Rate by 25 basis points to 0.25 percent, its first cut since March 2009, and launches package of stimulus measures to boost economic growth and ensure inflation rises to its target to counter some of the uncertainty following the vote to leave the European Union. The measures include expanding its government bond purchases by 60 billion pounds to a total 435 billion, up to 10 billion pounds of corporate bonds and a new Term Funding Scheme under which banks can borrow up to 100 billion over the next year to ensure the rate cut is passed on to households and firms. In the future, each element of this package can be adjusted and a majority of MPC members expect to support a further cut in the Bank Rate to its effective lower bound of “close to, but a little above, zero” if economic data are consistent with the bank’s forecast.



JULY 2016

TOTAL RATE CUTS:  940 points
RATE CUTS: Belarus, Moldova, Serbia, Kazakhstan, Malaysia, Mauritius, Paraguay, Georgia and Ukraine
TOTAL RATE RISES: 775 points

RATE RISES: Mozambique, Nigeria, Sri Lanka, Colombia and Tajikistan


GLOBAL MONETARY POLICY RATE (GMPR): 6.05 percent


JUNE 2016

TOTAL RATE CUTS:  437.5 points
RATE CUTS: South Korea, Russia, Uganda, Georgia, Indonesia, Ukraine, Armenia and Taiwan
TOTAL RATE RISES: 525 points
RATE RISES: Mozambique, Egypt, Colombia, Angola and Mexico


GLOBAL MONETARY POLICY RATE (GMPR): 6.03 percent


MAY 2016

TOTAL RATE CUTS:  1340 basis points

RATE CUTS: Belarus, Australia, Albania, Kazakhstan, Mongolia, Armenia, Pakistan, Kenya, Hungary, Paraguay, Ukraine, Moldova, Kyrgyzstan and Jamaica
TOTAL RATE RISES: 100 points
RATE RISES: Macedonia and Colombia

GLOBAL MONETARY POLICY RATE (GMPR): 6.05 percent



APRIL 2016


TOTAL RATE CUTS:  715 basis points
RATE CUTS: Uganda, India, Albania, Ukraine, Hungary, Georgia and Moldova
TOTAL RATE RISES: 275 basis points
RATE RISES: Mozambique, Namibia and Colombia
GLOBAL MONETARY POLICY RATE (GMPR): 6.19 percent





MARCH 2016

TOTAL RATE CUTS:  657.5 basis points
RATE CUTS: New Zealand, European Central Bank, Belarus, Indonesia, Norway, Morocco, Hungary, Taiwan, Kyrgyz Republic, Armenia and Moldova
TOTAL RATE RISES: 700 basis points
RATE RISES: Azerbaijan, South Africa, Egypt, Colombia, Nigeria and Angola
GLOBAL MONETARY POLICY RATE (GMPR): 6.23 percent




KEY EVENTS:


    The European Central Bank on March 10 launches a “comprehensive package” of measures to further ease financing conditions, stimulate credit provision and accelerate return of inflation to its target of below, but close to 2 percent. The measures include a cut to the benchmark refinancing rate by 5 basis points to 0.0 percent, a cut to the deposit rate by another 10 basis points to minus 0.40 percent, and a cut to the rate on the marginal lending facility by 5 points to 0.25 percent. The ECB also expanded its monthly asset purchases by 20 billion euros to 80 billion and confirmed that the program is intended to run until end-March 2017 but could also run longer, or at lest until inflation is nearing the target. In addition to the purchase of sovereign bonds, the ECB will now also purchase euro-denominated, investment-grade bonds by non-banks. Finally, the ECB also launched four new longer-term refinancing operations, each with a maturity of four years, starting in June.

    The Reserve Bank of New Zealand on March 9 surprises financial markets by cutting its rate by 25 basis points to 2.25 percent, and says further easing may be required to ensure that inflation settles near the middle of its target. The central bank expects inflation will rise at a slower pace than expected and there has been a decline in inflation expectations, a shift that concerns the RBNZ because this could become self-fulfilling and thus subdue future inflation.


FEBRUARY 2016

TOTAL RATE CUTS:  140 basis points
RATE CUTS: Sweden, Serbia, Armenia, Indonesia and Moldova
TOTAL RATE RISES: 775 basis points
RATE RISES: Angola, Kazakhstan, Peru, Mozambique, Azerbaijan, Namibia, Mexico, Sri Lanka, Tajikistan and Colombia

GLOBAL MONETARY POLICY RATE (GMPR): 6.24 percent


KEY EVENTS:


    The Bank of Mexico on Feb. 17 raises its benchmark target for the overnight interest rate by 50 basis points at an extraordinary board meeting in response to the continued depreciation of the peso and a likely rise in inflationary expectations in excess of its 3.0 percent target. The central bank, which already raised its rate by 25 basis points on the heels of the U.S. Federal Reserve’s rate hike in December, said the rate increase did not herald the beginning of a tightening cycle though it would closely monitor inflation and inflationary expectations along with the exchange rate and its possible transfer to consumer prices.  The rate increase came on the same day that the central bank intervened directly in the foreign exchange market to sell dollars for the first time since 2009, and the government announced plans to cut spending by 132.3 billion pesos in response to the fall in oil prices.


    Sveriges Riksbank on Feb. 11 cuts its benchmark repo rate further into negative territory and says it is prepared to make its monetary policy even more expansionary to ensure that inflation approaches its 2.0 percent target and that confidence in its target is not weakened. The Riksbank, which cut its repo rate by a further 15 basis points to minus 0.50 percent, said its monetary policy had to respond to low inflation and more expansionary policy by other central banks otherwise the krona’s exchange rate is at risk of strengthening, making it harder to push up inflation.




0 comments:

Post a Comment