By Central Bank News
The past week in monetary policy saw interest rate decisions by 4 central banks around the world, with just one, South Africa, cutting rates while the other four kept rates unchanged.
Countries with solid domestic demand, such as Canada and Mexico, are so far able to shrug off the weakening global economy while those countries that are more exposed to Europe’s crises, such as South Africa, are cutting rates to stimulate economic activity.
LAST WEEK’S MONETARY POLICY DECISIONS:
COUNTRY | NEW RATE | OLD RATE | ONE YR AGO |
CANADA | 1.00% | 1.00% | 1.00% |
TURKEY | 5.75% | 5.75% | 5.75% |
S.AFRICA | 5.00% | 5.50% | 5.50% |
MEXICO | 4.50% | 4.50% | 4.50% |
NEXT WEEK:
Looking at the central bank calendar for next week, there are expectations that Colombia will follow the trend of lowering interest rates to stimulate its economy but neither Israel, Nigeria, Thailand, or the Philippines are expected to follow suit.
Hungary is now in talks with the IMF after the government passed amendments that restore the central bank’s independence.
COUNTRY | DATE | RATE | 1 YR AGO |
ISRAEL | 23-Jul | 2.25% | 3.25% |
HUNGARY | 24-Jul | 7.00% | 6.00% |
NIGERIA | 24-Jul | 12.00% | 8.75% |
THAILAND | 25-Jul | 3.00% | 3.25% |
NEW ZEALAND | 26-Jul | 2.50% | 2.50% |
PHILIPPINES | 26-Jul | 4.00% | 4.50% |
COLOMBIA | 27-Jul | 5.25% | 4.50% |
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