Monetary Policy Week in Review - 10 March 2012
The past week in monetary policy and central banking saw just one central bank change interest rates, with Brazil cutting rates 75 basis points to 9.75%. Meanwhile those that held interest rates unchanged were: Australia 4.25%, Kenya 18.00%, Poland 4.50%, New Zealand 2.50%, EU 1.00%, UK 0.50%, Korea 3.25%, Serbia 9.50%, Peru 4.25%, Canada 1.00%, Malaysia 3.00%, and Indonesia 5.75%. The Reserve Bank of India also made headlines, cutting its Cash Reserve Ratio by 75 basis points to 4.75%.
Looking at the central bank calendar, the main event next week is the US Federal Reserve's FOMC (Federal Open Market Committee), Wall Street will be watching the release closely for any signs of further Quantitative Easing e.g. "QE3" or even sterilized quantitative easing. The Bank of Japan meeting and Swiss National Bank meetings will also be worth watching.
Mar-13
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JPY
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Japan
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Bank of Japan
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Mar-13
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USD
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United States
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Federal Reserve
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Mar-14
|
NOK
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Norway
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Norges Bank
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Mar-15
|
CHF
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Switzerland
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The Swiss National Bank
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Mar-15
|
INR
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India
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Reserve Bank of India
|
Mar-16
|
MXN
|
Mexico
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Banco de Mexico
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So many banks meeting, but not making decisions.... lame, we want more liquidity! :)
ReplyDeleteSure, though the two banks that did move; India and Brazil, are very important emerging markets - it's positive to see them making stimulatory moves. In addition, China printed an inflation figure of 3.2% in February, so there may be scope for more stimulus there too; watch this space.
DeleteThere's also the chance of some form of further QE from the Fed; though I wouldn't hang my hat on it yet - things aren't that bad.
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