By Central Bank News
The past week in monetary policy saw interest rate decisions by nine central banks around the world, with three central banks cutting rates and six keeping rates unchanged.
The markets were overwhelmingly focused on the European Central Bank (ECB), following recent statements by its president, Mario Draghi, and the U.S. Federal Reserve. Although both central banks failed to present new stimulus measures, they began the critical task of preparing markets for measures that are likely to be launched if economic conditions deteriorate.
There was initial disappointment that the ECB didn’t kick off any new bond purchasing programs but what many observers fail to recognize is that central banks have to be very cautious rolling out new measures as they are in unchartered terrain. Raising or lowering interest rates in response to business cycles is one thing, restoring investors’ faith in governments is a different matter.
LAST WEEK’S MONETARY POLICY DECISIONS:
| COUNTRY | NEW RATE | OLD RATE | RATE 1 YR AGO |
| INDIA | 8.00% | 8.00% | 8.00% |
| UNITED STATES | 0.25% | 0.25% | 0.25% |
| UNITED KINGDOM | 0.50% | 0.50% | 0.50% |
| EURO ZONE | 0.75% | 0.75% | 1.50% |
| CZECH REPUBLIC | 0.50% | 0.50% | 0.75% |
| ROMANIA | 5.25% | 5.25% | 6.25% |
| UGANDA | 17.00% | 19.00% | 14.00% |
| KAZAKHSTAN | 5.50% | 6.00% | N/A |
| DOMINICAN REP. | 5.50% | 6.00% | 6.75% |
| COUNTRY | MEETING | CURRENT RATE | RATE 1 YR AGO |
| AUSTRALIA | 7-Aug | 3.50% | 4.75% |
| SRI LANKA | 8-Aug | 7.75% | 7.00% |
| SOUTH KOREA | 9-Aug | 3.00% | 3.25% |
| SERBIA | 9-Aug | 10.25% | 11.75% |
| JAPAN | 9-Aug | 0.10% | 0.10% |
| INDONESIA | 9-Aug | 5.75% | 6.75% |
| PERU | 9-Aug | 4.25% | 4.25% |