By Central Bank News
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
