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Monetary Policy

SARB raises rates as inflation soars

The South African Reserve Bank raised the key repo interest rate by 50 basis points to 9.5% on 7 June, after inflation surged through the upper band of the central bank's 3% to 6% target range in April.

Indonesia cuts for twelfth time since May 2006

As widely expected, Bank Indonesia reduced its policy interest rate - used as a reference for bill sales - by a quarter point to 8.5% today, taking advantage of the lowest inflation rate in six months. It was the twelfth rate cut since May 2006.

Australia keeps rate at six-year high

Glenn Stevens, Governor of the Reserve Bank of Australia, announced on 6 June that the central bank would keep its benchmark interest rate unchanged for the sixth meeting in succession. Rates remain unchanged at a six-year high of 6.25%.

Cyprus surprises with unchanged repo rate

The Central Bank of Cyprus has raised the interest rate on its marginal lending facility and on the overnight deposit facility by 25 basis points. However, the rate on the central bank's main refinancing operations (repo rate) remains unchanged at 4.5%.

ECB lifts rates to 4%

The European Central Bank has raised its key interest rates by 25 basis points to 4%, taking rates in the eurozone to their highest level for six years. This latest increase means that interest rates have doubled in 18 months.

Inflation expectations contained - Turkey's Yilmaz

Speaking at a conference celebrating the 75th anniversary of the Central Bank of the Republic of Turkey, governor Durmus Yilmaz said the central "strong reaction" to financial turmoil in 2006 "have contained inflation expectations" and that these will …

Sweden's Rosenberg on interest rates

External price pressure and expectations of improvements in productivity were the reasons why Irma Rosenberg, a first deputy governor at Sweden's Riksbank, voted for rates to stay on hold at the monetary policy meeting at the start of the month, she said…

Governor's deciding vote sees Czech rates up

The Czech Central Bank raised interest rates by a quarter of a percentage point to 2.75% on 31 May. The central bank's board was split, with three members voting for the hike and three for leaving rates unchanged. It then fell to governor, Zdenik Tma, to…

UK's Blanchflower explains voting behaviour

In a speech on 30 May David Blanchflower, member of the Bank of England's Monetary Policy Committee, said that he voted to raise rates for the first time since joining the MPC in June 2006 because he wanted to indicate to the public the Bank's intention…

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