News/Monetary Policy
SBP reverses course and hikes rates 100bp
State Bank of Pakistan raises key rate in emergency session as IMF deadline looms
Bank of Mexico holds rates again
Board says rates will remain at current level “for an extended period”
Philippine and Indonesian MPCs hold rates again
Analysts expect both banks to keep rates unchanged for several more meetings
Turkish central bank raises rates for first time since 2021
Lira falls despite tightening as finance minister promises “free foreign exchange regime”
Africa: Rate rises for DRC and Namibia, but Zimbabwe says no
DRC and Namibia react to high inflation as expert says Zimbabwe is suffering hyperinflation
Latin America: Brazil holds rates despite president’s attack
Chilean board also holds policy, while Costa Rica cuts after inflation goes below target
Switzerland and Norway raise rates
Norges Bank expects further increases while SNB does not rule them out
BoE makes surprise 50bp rate increase
Central bank to review modelling framework after repeated forecast errors
BoJ sticks to ultra-loose monetary policy
Japan’s inflation has exceeded 2% target for a year, but central bank is unconvinced it is sustainable
ECB raises rates again and signals more tightening
Tight labour market and core inflation surprises have driven forecasts higher, Lagarde says
Japan’s finance minister mulls purchase of BoJ’s ETF holdings
Analysts believe asset purchase programme is to stay for the time being
PBoC cuts key policy rate
Chinese central bank ramps up support as new data suggests recovery is slowing
Fed holds policy rate steady
Powell says conditions for lower inflation are coming into place, and July will be a “live meeting”
PBoC cuts short-term interest rate to support economy
Analysts believe central bank may ease policy further as Chinese economy continues to struggle
Pakistan holds rates despite high inflation
Reserves resume fall as balance of payments crisis continues
Peru’s central bank holds rates despite high inflation
Board says decision does not mean tightening cycle is over
Zimbabwe devalues currency as crisis deepens
Analyst says Reserve Bank and finance ministry are struggling for control of FX reserves
Philippine central bank cuts lenders’ reserve requirements
Move comes after BSP paused monetary tightening in May
RBI holds rate despite stubborn inflation
Policy-makers hint at need for further tightening as inflation stays above target
Fed contemplates rate hike or ‘skip’
Top officials indicate the terminal rate is not yet reached – but a pause is possible
Central banks’ pandemic interventions averaged 6% of GDP
IMF paper finds relief measures were three times bigger than in global financial crisis
RBA raises interest rate to 11-year high
Governor Philip Lowe signals further rate hikes may be needed
Banknotes: April to June 2023
A round-up of news and salient issues that have affected central bankers in the past three months
Dominican Republic cuts key rate by 50bp
Central bank expects headline inflation will have returned to target in May