Friday, December 31, 2010

Monetary Policy Week in Review - 1 Jan 2011

The past week was a relatively quiet week, but the central banks of Israel, Indonesia, Taiwan, and the Philippines announced monetary policy decisions. Israel held steady at 2%, the Philippines also held at 6%, and Indonesia kept its rate at 6.5% but announced plans to raise the minimum foreign currency reserve requirements for banks to 5% from the current 1% in March. Taiwan was the only one to change its rate, following the path of its counterpart on the mainland with an interest rate increase; lifting its key rates by 12.5 basis points, which will place the discount rate at 1.625%.

There are no major central bank meetings scheduled for next week, but the US Federal Reserve will release its FOMC meeting minutes from the 14th of December meeting, which may provide interesting reading. Finally, would like to wish you all the very best for 2011, may it be a safe, prosperous and happy year for you.


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