The past week in monetary policy saw interest rate decisions by 10 central banks around the world, with four cutting rates, most notably the People’s Bank of China and the European Central Bank. The cut by the Danish central bank, which is fighting to keep down the crown currency, brought its key rate to negative.
The other six central banks left rates unchanged, but the Bank of England expanded its asset purchasing program.
MONETARY POLICY DECISIONS:
COUNTRY NEW RATE PREVIOUS RATE RATE 1 YEAR AGO
AUSTRALIA 3.50% 3.50% 4.75%
URUGUAY 8.75% 8.75% 8.0%
SWEDEN 1.50% 1.50% 2.0%
POLAND 4.75% 4.75% 4.50%
UGANDA 19.0% 20.0% 13.05%
MALAYSIA 3.0% 3.0% 3.0%
DENMARK -0.20% 0.05% 1.55%
CHINA 6.0% 6.31% 6.56%
EURO AREA 0.75% 1.0% 1.50%
UNITED KINGDOM 0.50% 0.50% 0.50%
NEXT WEEK:
Looking at the central bank calendar for next week, there could be further monetary easing with the Bank of Japan increasing its asset purchases and lower inflation giving the Brazilian central bank room to cut rates further. There will be focus on euro area finance ministers who meet on Tuesday. | Jul-11 | BRL | Brazil | Banco Central do Brasil |
| Jul-12 | JPY | Japan | Bank of Japan |
| Jul-12 | IDR | Indonesia | Bank Indonesia |
| Jul-12 | PEN | Peru | Central Reserve Bank of Peru |
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