Monetary Policy Week in Review – 3 March 2012

The past week in monetary policy saw interest rate decisions announced by 6 central banks, with those changing rates including: Tajikistan -80bps to 9.00%, Philippines -25bps to 4.00%, and Uganda -100bps to 21.00%.  Those that held monetary policy rates unchanged were: Israel at 2.50%, Angola at 10.25%, and Hungary at 7.00%.  The European Central Bank also completed its second LTRO, with 529.5 billion Euros allotted to 800 banks.

Looking at the central bank calendar, the week ahead features several key central bank meetings; within developed markets there’s the ECB, BoE, RBNZ, RBA, and BOC, while in emerging markets there’s Poland, Brazil, Indonesia, Peru, and Malaysia. The most important meetings will likely be the European Central Bank, though they may continue to hold current policy settings; and the Banco Central do Brasil, which is likely to cut rates again. The developed market banks will likely hold, while there may be further cuts in emerging markets.