Highlights

    Central Bank News' Global Monetary Policy Highlights (GMPH) provides readers with an overview 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). Please email us if you have any comments on our selection of events at centralbanknews@yahoo.com
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MAY  2017


TOTAL RATE CUTS: 325 points

RATE CUTS: Peru, Iceland, Zambia, Chile and Ghana
TOTAL RATE RISES: 250 points
RATE RISES: Georgia, Mexico and Egypt

GLOBAL MONETARY POLICY RATE (GMPR): 6.22 percent


KEY EVENTS:



APRIL  2017

TOTAL RATE CUTS: 425 points
RATE CUTS: Mozambique, Uganda, Brazil, Ukraine, Chile, Russia and Colombia
TOTAL RATE RISES: 225 points
RATE RISES: Dominican Republic, Argentina and Tunisia

GLOBAL MONETARY POLICY RATE (GMPR): 6.22 percent

KEY EVENTS:


    Sweden’s central bank, the Riksbank, on April 27 maintains repo rate at minus 0.50 percent but pushes back its forecast for a rate increase by three months to mid-2018 and extends its purchase of government bonds by a further 15 billion Swedish krona during the second half of this year. By the end of this year, the Riksbank’s purchases will have totaled 290 billion krona, excluding reinvestments. The previous asset purchase program was scheduled to end mid-2017 and the extension came as a surprise to economists. Economic activity in Sweden is “increasingly strong, but the Riksbank now assesses that it will take longer before inflation stabilises around 2 percent," the central bank said.


    The Czech National Bank (CNB) on April 6 ends its exchange rate commitment as it now considers the conditions for fulfilling its 2.0 percent inflation target as being met. The CNB began using the exchange rate of the koruna as an additional tool of monetary policy to stave off deflation in November 2013, 12 months after cutting the benchmark rate to effectively zero. Through intervention, the CNB had kept a limit of the koruna against the euro at 27. The exit from the exchange rate commitment is the bank’s first step towards a gradual easing of expansive monetary conditions and returns the CNB to a conventional monetary policy regime with interest rates as the main tool. The decision was taken at an extraordinary monetary policy meeting by the CNB board.


MARCH  2017

TOTAL RATE CUTS: 850 points
RATE CUTS: Belarus, Chile, Tajikistan, Russia, Colombia, Malawi and Ghana
TOTAL RATE RISES: 325 points
RATE RISES: United States, Kuwait, United Arab Emirates (UAE), Bahrain, Saudi Arabia, Hong Kong, Macau, Qatar, Jordan, Sri Lanka, Mexico and Central African States

GLOBAL MONETARY POLICY RATE (GMPR): 6.24 percent



KEY EVENTS:


The U.S. Federal Reserve on March 15 raises its target for the key federal funds rate by another 25 basis points to 0.75-1.0 percent, citing continued strengthening of the labor market, moderately expanding economic activity and inflation that is moving close to its long-run objective. It is the Fed’s third rate hike following the global financial crises.



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




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