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Monetary Policy Week In Review – Feb 2-6, 2015: One-Third Of All Central Bank Decisions Result In Rate Cuts

Last week in global monetary policy another four banks (Australia, Romania, Jordan and Denmark) lowered their policy rates, boosting the number of rate cuts so far this year to 19.
This means that one-third of this year's 56 policy decisions by central banks have resulted in rate cuts, illustrating how active central banks have been in adjusting their policy stance to the growing risks to the global economy and the prospect of tighter U.S. monetary policy.
In comparison, only six central banks had lowered their policy rates at this point in 2014, the equivalent of 11 percent of 54 policy decisions through the first six weeks of last year.
Meanwhile, Ukraine was the only central bank to raise its rate last week (by a sharp 550 basis points), pushing the number of rate increases worldwide so far this year to seven, or 12.7 percent of all policy decisions.
While the rate cuts have been fairly evenly divided between central banks in advanced, emerging and frontier markets, the rate increases are mainly taking place in smaller economies.
Four of these seven rate rises have come from central banks that are fighting plunging currencies and inflationary pressures due to their close economic and financial ties to Russia: Belarus, Armenia, Kyrgyzstan and Ukraine.
The other three central banks that have raised their rates so far this year are Brazil, Trinidad & Tobago and Mongolia.

LIST OF LAST WEEK'S CENTRAL BANK DECISIONS:

 


TABLE WITH LAST WEEK'S MONETARY POLICY DECISIONS:

COUNTRY MSCI NEW RATE OLD RATE 1 YEAR AGO
ANGOLA   9.00% 9.00% 9.25%
AUSTRALIA DM 2.25% 2.50% 2.50%
INDIA EM 7.75% 7.75% 8.00%
ROMANIA FM 2.25% 2.50% 3.75%
ICELAND   5.25% 5.25% 6.00%
POLAND EM 2.00% 2.00% 2.50%
JORDAN FM 4.00% 4.25% 4.25%
UNITED KINGDOM DM 0.50% 0.50% 0.50%
CZECH REPUBLIC EM 0.05% 0.05% 0.05%
UKRAINE FM 19.50% 14.00% 6.50%
DENMARK (DEPO RATE) DM -0.75% -0.50% -0.10%

This week (Week 7) central banks from 10 countries or jurisdictions are scheduled decide on monetary policy: Zambia, Mauritius, Armenia, Georgia, Mozambique, Philippines, Sweden, Chile, Peru and Uganda.

TABLE WITH THIS WEEK'S MONETARY POLICY DECISIONS:

COUNTRY MSCI DATE CURRENT RATE 1 YEAR AGO
ZAMBIA   9-Feb 6.50% 6.50%
MAURITIUS FM 9-Feb 4.65% 4.65%
ARMENIA   10-Feb 9.50% 7.50%
GEORGIA   11-Feb 4.00% 4.00%
MOZAMBIQUE   11-Feb 7.50% 8.25%
PHILIPPPINES EM 12-Feb 4.00% 3.50%
SWEDEN DM 12-Feb 0.00% 0.75%
CHILE EM 12-Feb 3.00% 4.25%
PERU EM 12-Feb 3.25% 4.00%
UGANDA   13-Feb 11.00% 11.50%

www.CentralBankNews.info