During the past week - week 1 of 2022 - five central banks took monetary policy decisions, resulting in four changes to policy interest rates as four rates was raised while no rates were cut.
The remaining decision resulted in unchanged interest rates.
Year-to-date central banks worldwide have taken 5 monetary policy decisions, with the policy rate lowered 0 times, the rate increased 4 times and the rate left unchanged 1 time.
Cuts to interest rates thus account for 0.0% of all changes to the policy rate year-to-date.
Rate increases account for 100% of all changes to the policy rate year-to-date.
LIST OF 0 RATE CUTS IN 2022 BY 0 CENTRAL BANKS: None
LIST OF 4 RATE RISES in 2022 BY 4 CENTRAL BANKS: Poland, Uruguay, Argentina and Peru.
EASING VS TIGHTENING
In addition to raising or lowering the policy rate, central banks also change their monetary policy stance by other tools, such as raising or lowering banks' reserve requirements, asset purchases or changing foreign exchange rates.
Last week (week 1 of 2022) central banks made 4 changes to their overall policy stance, including 4 changes to the policy rate.
Year-to-date central banks have made 4 changes to their monetary policy stance, with decisions aimed at easing the policy stance accounting for 0.0% of changes.
In comparison, in 2021 central banks took 50 steps toward easing their monetary policy stance, which accounted for 24.9% of all changes to monetary policy, whereas in 2020 monetary easing steps accounted for 96.3% of all changes to monetary policy.
Rate cuts accounted for 0.0% of all changes to the monetary policy stance in 2022, compared with 8.5% in 2021.
Decisions aimed at tightening the monetary policy stance accounted for 100% of all changes to monetary policy in 2022, up from 87.0% in 2021.
Interest rate increases account for 100% of all changes to monetary policy in 2022, up from 61.7% in 2021.
CUMULATIVE SIZE OF RATE CUTS 2022: 0 basis points
CUMULATIVE SIZE OF RATE RISES 2022: 375 basis points
NET CHANGE IN RATES 2022: +375 basis points
GLOBAL MONETARY POLICY RATE: 5.55%, up 4 basis points since start of 2022.
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EASIER VS TIGHTER IN EARLIER YEARS
2021: 50 central banks tightened monetary policy and 27 eased, global net tightening by 23 central banks.
2020: 10 central banks tightened monetary policy and 93 eased, global net easing by 83 central banks.
2019: 17 central banks tightened monetary policy and 67 eased, global net easing by 50 banks
2018: 43 central banks tightened monetary policy and 32 eased, global net tightening by 11 banks
2017: 28 central banks tightened monetary policy and 34 eased, global net easing by 6 banks
2016: 29 central banks tightened monetary policy and 46 eased, global net easing by 17 banks
2015: 48 central banks tightened monetary policy and 34 eased, global net tightening by 14 banks
2019: 17 central banks tightened monetary policy and 67 eased, global net easing by 50 banks
2018: 43 central banks tightened monetary policy and 32 eased, global net tightening by 11 banks
2017: 28 central banks tightened monetary policy and 34 eased, global net easing by 6 banks
2016: 29 central banks tightened monetary policy and 46 eased, global net easing by 17 banks
2015: 48 central banks tightened monetary policy and 34 eased, global net tightening by 14 banks
2022 MONETARY POLICY CHANGES BY MONTH:
JANUARY:
EASING:
TIGHTENING: Poland, Uruguay, Argentina and Peru raise rates.
2022 MONETARY POLICY RATE CHANGES BY MARKETS:
DEVELOPED MARKETS:
EMERGING MARKETS: Central banks in emerging markets have decided on monetary policy 2 times in 2022, with 2 decisions by 2 central bank ending in rate hikes: Poland and Peru.
FRONTIER MARKETS:
OTHER MARKETS: Central banks in other markets have decided on monetary policy 2 times in 2022 with 2 central banks deciding to raise rates: Uruguay and Argentina.
Central Bank News, which tracks the monetary policy stance of 104 central banks, publishes Global Monetary Policy Changes (GMPC), a country-by-country overview of changes to monetary policy.
GMPC aims to capture changes to a wide range of monetary policy instruments, not just key interests rates but also changes to reserve requirements, bond purchases or foreign exchange rates to understand whether the monetary conditions become tighter of easier.
GMPC complements Central Bank News' other products, such as the Global Interest Rate Monitor (GIRM), which tracks official policy rates, and Global Monetary Policy Highlights (GMPH), which summarizes interest changes each month.
GMPC includes an alphabetical list of countries with changes to their monetary policy and can always be accessed by clicking here.
2022 GMPC
ARGENTINA
PERU
Jan 6: reference rate raised 50 bps to 3.0% and board expects to continue normalizing monetary policy stance in coming months based on current information.
POLAND
URUGUAY
Jan 5: reference rate raised 75 bps to 6.50% and rate expected to be raised by the same magnitude at the next two monetary policy meetings so the rate reaches a neutral level by the beginning of the second quarter.
