Monetary Policy Week in Review - July 14, 2012

      The past week in monetary policy saw interest rate decisions by 11 central banks around the world, with five cutting rates, one raising its rate and the remaining five keeping rates unchanged.

    The message from central banks was loud and clear: The euro area’s debt crises is creating nervousness in financial markets and the global economy is slowing down, leading to lower demand for commodities from many emerging economies. On the positive side, domestic demand remains solid in many countries and declining inflation is giving central banks room to cut interest rates.

   MONETARY POLICY DECISIONS:

COUNTRY	NEW RATE	OLD RATE	RATE 1 YR AGO
BRAZIL	8.00%	8.50%	12.50%
S.KOREA	3.00%	3.25%	3.25%
JAPAN	0.10%	0.10%	0.10%
INDONESIA	5.75%	5.75%	6.75%
PERU	4.25%	4.25%	4.25%
SRI LANKA	7.75%	7.75%	7.75%
TAJIKISTAN	6.80%	8.00%	9.00%
ARMENIA	8.00%	8.00%	8.50%
KENYA	16.50%	18.00%	6.25%
LATVIA	3.00%	3.50%	3.50%
SERBIA	10.25%	10.00%	11.75%

   

    

    NEXT WEEK:

    Looking at the central bank calendar for next week, there are expectations that South Africa may follow the trend toward lower rates while Canada is expected to keep rates on hold.

Jul-17	CAD	Canada	Bank of Canada
Jul-19	ZAR	South Africa	South African Reserve Bank
Jul-19	TRY	Turkey	Central Bank of Turkey
Jul-20	MXN	Mexico	Banco de Mexico

www.CentralBankNews.info