By Central Bank News
The past week in monetary policy saw interest rate decisions by 6 central banks, with two banks (Brazil and South Korea) cutting rates, one bank (Serbia) raising rates and the remaining three banks (Indonesia, Peru and Singapore) keeping policy rates unchanged.
As Singapore’s monetary policy is targeted at its currency rather than interest rates, it is not closely followed by Central Bank News.
Rate cuts by Brazil and Korea were largely expected, with both banks citing the weak global economy as the reason for the move. Serbia continued its rate-hike campaign to ensure that a rise in inflation from higher food prices doesn’t spread to other prices and fuels inflationary expectations.
Indonesia and Peru’s kept rates steady due to strong economic growth, though both central banks noted the impact of the weak global economy.
LAST WEEK’S MONETARY POLICY DECISIONS:
| COUNTRY | MSCI | NEW RATE | PREVIOUS RATE | RATE 1 YEAR AGO |
| BRAZIL | EM | 7.25% | 7.50% | 11.50% |
| INDONESIA | EM | 5.75% | 5.75% | 6.50% |
| KOREA | EM | 2.75% | 3.00% | 3.25% |
| PERU | EM | 4.25% | 4.25% | 4.25% |
| SERBIA | FM | 10.75% | 10.50% | 10.75% |
NEXT WEEK (Week 42) features monetary policy decisions by Sri Lanka, Thailand and Turkey.
| ||||||||||||||||||||||||
| www.CentralBankNews.info |
