2019: 17 central banks tightened monetary policy and 67 eased, global net easing by 50 banks
2018: 43 central banks tightened monetary policy and 32 eased, global net tightening by 11 banks
2017: 28 central banks tightened monetary policy and 34 eased, global net easing by 6 banks
2016: 29 central banks tightened monetary policy and 46 eased, global net easing by 17 banks
2015: 48 central banks tightened monetary policy and 34 eased, global net tightening by 14 banks
ARGENTINA
ARMENIA
Feb 1: refinancing rate raised 25 bps to 8.0% as the risks of inflation deviating from its projected trajectory are mainly upwards and if these risks materialize, the Bank will respond accordingly and ensure the goal of price stability.
AUSTRALIA
AZERBAIJAN
Jan 28: discount rate raised 25 bps to 7.50% as inflationary pressures have continued to rise.
BRAZIL
Feb 2: Selic rate raised 150 bps to 10.75% and while monetary tightening will persist until inflation decelerates and inflation expectations anchor around the target, the size of rate increases will be reduced in future policy decisions.
CHILE
Jan 26: monetary policy rate raised 150 bps to 5.50% as there are still significant risks of higher inflation as recent data on economic activity and inflation are above latest forecast at the same time inflationary pressures from abroad have risen.
CHINA
Jan 20: Loan Prime Rate (LPR) cut 10 bps to 3.70%, the same week the rate on the medium-term lending facility (MLF) was cut by 10 bps to 2.85%.
COLOMBIA
Jan 28: interest rate raised 100 bps to 4.0% due to higher-than-expected inflation and a significant increase in inflation expectations.
CONGO
Jan 2: key interest rate cut 100 bps to 7.50%, helping strengthen the financing of the economy in Congolese francs and thus support de-dollarization of the economy amid greater control of inflation.
COSTA RICA
Jan 26: policy rate raised 50 bps to 1.75% as risks to inflation remain tilted to the upside and Bank expects to continue to raise the rate gradually to reach a neutral monetary policy stance.
CZECH REPUBLIC
Feb 3: 2-week repurchase rate raised 75 bps to 4.50% to push inflation down to the target and anchor firms’ and households’ inflation expectations. Future monetary policy steps will depend on incoming new information and forecasts.
DOMINICAN REPUBLIC
Jan 31: monetary policy rate raised 50 bps to 5.0% as part of the normalization of monetary policy aimed at moderating shocks on prices and help inflation converge toward the target range.
EURO AREA
Feb. 3: asset purchases under the pandemic emergency purchase program (PEPP) to be ended at the end of March, as decided in December 2021, while monthly asset purchases under the Asset Purchase Program (APP) will be increased in the second and third quarters to 40 billion euros and 30 billion, respectively, before returning to the previous monthly pace of 20 billion.
HUNGARY
Jan 25: base rate raised 50 bps to 2.90% and Bank will continue the cycle of interest hikes until the outlook for inflation stabilizes around the target and inflation risks become evenly balanced.
INDONESIA
Jan 20: To normalize the loose liquidity conditions the rupiah reserve requirement for conventional banks will be gradually raised in three steps. As of March 1, the reserve requirement will be raised 150 bps to 5.0%, then on June 1 it will be raised 100 bps to 6.0% and on Sept. 1 the requirement will be raised 50 bps to 6.5%. BI will provide reserve requirement remuneration of 1.5%.
KAZAKHSTAN
Jan 24: Base rate raised 50 bps to 10.25% to reduce inflation expectations and bring inflation back to the target range by the end of 2022.
KYRGYZ REPUBLIC
Jan 31: discount rate raised 50 bps to 8.50% to curb high inflationary pressures
LESOTHO
Feb 1: CBL rate raised 25 bps to 4.0% to ensure the domestic cost of funds remains aligned with the rest of the region.
MOLDOVA
Jan 13: interest rate on short-term monetary policy operations raised 200 bps to 8.50% and ratio on required reserves on leu by 200 bps to 28.0% to temper inflationary pressures and the effects of shocks on the economy.
PARAGUAY
Jan 21: monetary policy rate raised 25 bps to 5.50% but pace of tightening slowed due to a weaker economic outlook from drought and the latest wave of COVID-19 pandemic.
PERU
Jan 6: reference rate raised 50 bps to 3.0% and board expects to continue normalizing monetary policy stance in coming months based on current information.
POLAND
ROMANIA
Jan 10: monetary policy rate raised 25 bps to 2.0% as monetary policy is gradually normalizes amid a worsening outlook for inflation in the near term while economic activity came to a standstill in the fourth quarter of 2021 due to a fourth wave of the pandemic, supply bottlenecks and the energy crises.
SINGAPORE
Jan 25: raises rate of appreciation of Singapore dollar against basket of currencies as inflation outlook had shifted further upward amid confluence of recovering global demand and persistent supply-side frictions.
SOUTH AFRICA
Jan 27: repurchase rate raised 25 bps to 4.0%, with gradual rise in interest rates sufficient to keep inflation expectations well anchored, and thus moderate the future path of rates given the expected trajectory of inflation and upside risks.
SOUTH KOREA
Jan 14: base rate raised 25 bps to 1.25% and degree of monetary policy accommodation will be appropriately adjusted as Korean economy is expected to continue its sound growth and inflation to run above the target for a considerable time.
SOUTH SUDAN
Jan 11: central bank rate cut 300 bps to 12.0% and minimum reserve requirement on local deposits 500 bps to 15.0% to achieve 1.0% economic growth in fiscal 2021/22, maintain inflation in single digits at 8.0%, plus/minus 1 percentage points, boost lending to the private sector and increase international reserves.
SRI LANKA
Jan 20: Standing Deposit Facility Rate (SDFR) and Standing Lending Facility Rate (SLFR) raised 50 bps each to 5.50% and 6.50% respectively, and further measures taken to boost foreign exchange reserves to curtail the possible build-up of underlying demand pressures in the economy, which will also help ease pressures in the external sector.
UKRAINE
Jan 20: discount rate raised 100 bps to 10.0% and central bank will continue the cycle of strengthening monetary policy and is ready to act decisively in the event of further implementation of pro-inflationary factors, such as an escalation of the conflict with Russia or further spikes in prices.
UNITED KINGDOM
Feb 3: bank rate raised 25 bps to 0.50% and stock of government and corporate bonds will be reduced as the economy is expected to bounce back quickly after a soft spell and inflation continues to rise.
URUGUAY
Jan 5: reference rate raised 75 bps to 6.50% and rate expected to be raised by the same magnitude at the next two monetary policy meetings so the rate reaches a neutral level by the beginning of the second quarter.
ANGOLA
Jan 29: banks’ reserve accounts divided into a mandatory and clearing account with an interest rate of 0.10 to 0.20 percent applied as custody fee on banks’ excess liquidity to help ensure the monetary base evolves in line with inflation objective. BNA says need to implement prudent monetary policy of a restrictive nature is “evident” during 2021 to reach target of lowering inflation to single digits in 2022 as monetary expansion in 2020 was not due to economic activity.
Mar 29: interest rate on permanent liquidity absorption facility raised 500 bps to 12.0% as there is persistent inflationary pressure despite a stable exchange rate and contained aggregate demand.
Jul 2: BNA rate raised 450 basis points to 20.0% to reverse the trajectory of inflation and reach the target of inflation of 19.5% by the end of 2021, reduce distortions in the monetary policy corridor and place the key rate in an intermediary level between the lending and liquidity absorption facilities, improve conditions for efficient intermediation, stimulate savings and exchange rate stability.
ARMENIA
Feb 2: refinancing rate raised 25 bps to 5.50% due to rising inflation expectations – amidst rising inflation from higher good prices - despite weak demand.
May 4: refinancing rate raised 50 bps to 6.0% as it is necessary to gradually neutralize monetary stimulus due to inflationary pressures expected from other countries and from the domestic economy, which is recovering faster than expected.
Jun 15: refinancing rate raised 50 bps to 6.50% and further tightening will be considered in near future to neutralize risk of accelerating inflation expectations in parallel with the increase in domestic demand.
Aug 3: refinancing rate raised 50 bps to 7.0% and further tightening will be considered in near future to neutralize risk of accelerating inflation expectations in parallel with the increase in domestic demand.
Sep 14: refinancing rate raised 25 bps to 7.25% but tightening of monetary conditions has helped curb forward-looking demand and inflation, and thus improved chances of meeting medium-term inflation target.
Dec 14: refinancing rate raised 50 bps to 7.75% amid a significant rise in external inflation and inflation expectations. Tightening expected to lead to a gradual decrease in inflation toward the bank’s target.
AUSTRALIA
Feb 2: purchases of Australian government bonds increased by another $100 billion to ensure economy recovers as path ahead is still expected to be bumpy and uneven.
Jul 6: Weekly bond purchases to be reduced to A$4 billion from $5 billion from early September.
Sep 7: weekly bond purchases of $4 billion to continue to at least mid-February 2022 instead of mid-November 2021, reflecting the delay in the economic recovery and increased uncertainty associated with the Delta outbreak.
Nov 2: target of 0.10% yield on 3-year Australian government bond discontinued due to the improvement in the economy and earlier-than-expected progress towards inflation target.
AZERBAIJAN
Sep 17: discount rate raised 25 bps to 6.50% due to the impact on the domestic economy from an intensification of global inflation, especially rising costs of food, materials, transport and logistics.
Oct 29: discount rate raised 50 bps to 7.0% and future rate hikes not ruled out if the risks of inflation change.
Dec 17: discount rate raised 25 bps to 7.25% to help lower inflation and anchor rising inflation expectations.
Mar 12: permanent facility to offer and withdraw liquidity suspended to strengthen central bank’s control over the growth of the monetary base and money supply - intermediate monetary benchmarks in 2021 – to limit inflation. Instead, commercial banks’ need for liquidity will be provided through auctions.
Apr 14: refinancing rate raised 75 bps to 8.50% to limit pro-inflationary risks and strengthen control over money supply amid rising inflation expectations.
BRAZIL:
Mar 10: temporary reduction in reserve requirement on term deposit to 17.0% to combat the economic effects of COVID-19 extended to November, 2021 from April. In March 2020 the central bank decided the reserve requirement would return to 20% as of April, 2021.
Mar 17: Selic rate raised 75 bps to 2.75% as it begins a partial normalization process to reduce extraordinary degree of monetary stimulus and expects to raise rate again in May by the same amount unless there is a significant change in inflation projections.
May 5: Selic rate raised 75 bps to 3.50% as partial normalization process continues. For next meeting, another adjustment of the same magnitude of monetary stimulus is foreseen.
Jun 16: Selic rate raised 75 bps to 4.25%, with the monetary normalization process to continue at the next meeting with another change of the same magnitude to ease the impact of temporary shocks to inflation.
Aug 4: Selic rate raised 100 bps to 5.25% as the balance of risks indicate an interest rate hiking cycle to a level above neutral is appropriate, and for the next meeting another adjustment of the same magnitude is foreseen.
Sep 22: Selic rate raised 100 bps to 6.25% and foresees raising the rate by the same magnitude at the next meeting as the balance of risks indicate it is appropriate to advance monetary tightening further into the restrictive territory.”
Oct 27: Selic rate raised 150 bps to 7.75% and another adjustment of rates of the same magnitude foreseen at next policy meeting as the baseline scenario and balance of risks indicate it is appropriate for monetary tightening cycle to advance further into contractionary territory. Copom assesses the change to the fiscal framework has increased the risk of unanchoring inflation expectations, raising the probability of higher inflation than projected.
Dec 8: Selic rate raised 150 bps to 9.25% and Bank expects to raise rate by same magnitude at next meeting, and will persevere in its strategy until it consolidates not only disinflation process but also the anchoring of expectations around its goals.
Apr 21: weekly purchases of government bonds reduced to $3 billion from $4 billion as of April 26, reflecting the progress made in the economic recovery. Based on latest projection, economic slack is absorbed so 2% inflation target is achieved in second half of 2022 compared with 2023 in January projection.
Jul 14: weekly purchases of government bonds reduced to $2 billion, reflecting continued progress towards economic recovery and increased confidence in the strength of Canada’s economic outlook.
Oct 27: Quantitative Easing (QE) ends and overall holdings of government bonds to be held roughly constant due to progress in economic recovery. As bonds mature at different times, target for bond purchases moved to monthly rather than weekly timeframe, with a total purchase range of $4.-$5 billion, including $1-$2 billion in the primary market and $2.5-$3.5 billion in the secondary market. Length of this new “reinvestment phase” part of the monetary policy decisions, expected to last at least until the policy interest rate is raised.
CHILE
Jul 14: monetary policy rate raised 25 bps to 0.75% as a rapid narrowing of economic slack due to fiscal stimulus and strong consumption has created the appropriate conditions for a gradual withdrawal of monetary stimulus.
Aug 31: monetary policy rate raised 75 bps to 1.50% to prevent a persistent rise in inflation that could lead to it to exceeding its target in two years.
Oct 13: monetary policy rate raised 125 bps to 2.75%, with policy rate expected to reach a neutral level sooner than forecast to prevent a more persistent increase in inflation to above the target over the next 2 years.
Dec 14: monetary policy rate raised 125 bps to 4.0% and rate expected to rise further in the short term to above its neutral level to ensure inflation declines towards the bank’s target.
CHINA
Jul 9: reserve requirement ratio for most financial institutions cut 50 bps, lowering the cost of capital for banks by about 13 billion yuan and freeing up about 1 trillion in liquidity that banks can use to lend and support economic activity.
Dec 6: reserve requirement ratio for most financial institutions cut 50 bps, freeing up 1.2 trillion yuan that banks can use to support economic activity. Weighted average RRR for financial institutions to fall to 8.4% from 8.9%.
Dec 20: Loan Prime Rate cut 5 basis points to 3.80%.
Dec 30: Low-cost loans of 85.5 billion yuan issued to financial institutions to accelerate green financial system and reduce carbon emissions as structural monetary policy tools are used to guide financial institutions to increase their support for small and micro enterprises, technological innovation and green development.
COLOMBIA
Sep 30: benchmark interest rate raised 25 bps to 2.0%, with board recognizing risk that higher than expected above-target inflation could become a persistent phenomenon that leads to the indexation of higher inflation. Recovery in economic activity interrupted in the second quarter was restored in third quarter, suggesting output gap could close more quickly than anticipated, and increased persistence of supply shocks and the upward effect on prices could distance expectations from the target rate.
Oct 29: benchmark interest rate raised 50 bps to 2.50% as economic activity continues to recover at a greater pace than previously expected. Forecasts for economic growth and inflation raised.
Dec 17: benchmark interest rate raised 50 bps to 3.0% to ensure inflation returns to target after it was higher than expected in November, inflation expectations are rising and economic growth was significant in the fourth quarter, boosting the current account deficit.
Mar 12: policy rate cut 300 bps to 15.50% to reduce the cost of funding for banks in light of the good performance of the main economic indicators and the outlook for a slowdown in projected inflation.
Apr 16: policy rate cut 500 bps to 10.5% to lower the cost of funding for banks in light of a stable foreign exchange market, a slowdown in inflation and the short-term outlook that doesn’t point to any major shocks.
Jun 17: policy rate cut 200 bps to 8.50%
COSTA RICA
Jan 15: Board approves additional 142,887 million colon for the special medium-term financing facility, increasing total amount of facility to 842,887 million. Facility was created in September 2020 to provide low cost, national currency funds to households and businesses affected by COVID-19. As of Dec. 16, 2020, 22 plans approved for total of 575,267 million.
Dec 15: policy rate raised 50 bps to 1.25% and will maintain path of gradual rate increases to keep inflation within its tolerance range.
CZECH REPUBLIC
May 27: Countercyclical capital buffer raised 50 bps to 1.0% from July 1, 2022 while frequency of 2-week liquidity-providing repo operations for credit institutions reduced to once a week as of May 28 and to reintroduce previously applied interest rate mark-up of 0.1 pp.
Jun 23: two-week repo rate raised 25 bps to 0.50% and Lombard rate raised 25 bps to 1.25% but discount rate unchanged at 0.05%. CNB says it expects to continue to raise rates in the second half of this year as it probably enters a phase of rising interest rates, with risks slightly inflationary.
Aug 5: 2-week repo rate raised 25 bps to 0.75% to reinforce confidence of economic agents in long-term price stability as a gradual tightening of monetary conditions will not jeopardize economic recovery.
Aug 26: countercyclical capital buffer raised 50 bps to 1.50% from Oct. 1, 2022 due to the winding down of the acute phase of the pandemic. If loans continue to grow quickly and the taking on of risks in the banking sector’s balance sheet intensifies, CNB ready to increase the rate further.
Sep 30: 2-week repo rate raised 75 bps to 1.50%, with forceful rate hike aiming to anchor inflation expectations, which have been above the bank’s target for some time.
Nov 4: two-week repo rate raised 125 bps to 2.75% to return inflation close to the target and support anchoring of firms’ and households’ inflation expectations. CNB ready to continue increasing interest rates.
Dec 22: two-week repo rate raised 100 bps to 3.75% and Bank ready to continue increasing interest rates next year in order to maintain price stability as risks are markedly inflationary and hence require faster monetary tightening than forecast.
Mar 11: Benchmark deposit rate raised 10 bps to minus 0.50% in what central bank said was a technical adjustment of its monetary policy instruments to reduce fluctuations in money market rates resulting from changes in the size and composition of banks’ deposits and lending. The change is not intended to influence the level of money market rates or the Danish krone but solely to ensure more stable money market rates and thus a more predictable effect on the Danish krone, the central bank said. The adjustment simplifies the monetary policy rates by introducing one single deposit rate and one single rate for loans, and the differential between the two rates is narrowed. In addition to the deposit rate, the current account rate was lowered to minus 0.50% from 0.0% and the lending rate was lowered to minus 0.35% from 0.05%.
This adjustment is not considered a change in the central bank’s monetary policy stance but still counted as a rate hike and a monetary tightening step by Central Bank News.
Sep 30: Main interest rates cut 10 bps following foreign exchange purchases aimed at defending krone peg to euro. As of Oct. 1, deposit and current account rates are minus 0.60%, lending rate is minus 0.45% and discount rate 0.0%.
DOMINICAN REPUBLIC
Sept 30: Bank starts orderly plan to normalize monetary policy through the gradual return of funds granted through the different liquidity facilities as the loans from these instruments amortize. To date RD$45 billion has been recovered and this could exceed RD60 billion by the end of 2021.
Nov 24: monetary policy interest rate raised 50 bps to 3.50% in second stage of monetary policy normalization process to ensure inflation converges to target.
Dec 30: monetary policy interest rate raised 100 bps to 4.50% to return inflation to the target, anchor inflation expectations and reduce the risk that an overheating economy results in an overflow of inflationary pressures and domestic economic imbalances.
Mar 11: purchases under pandemic emergency purchase program (PEPP) to be conducted at “significantly higher pace” in second quarter than in first quarter as the rise in market interest rates could prematurely tighten financial conditions, which could undermine economic activity.
Jun 10: Based on financing conditions and the inflation outlook, net purchases under the pandemic emergency purchase program (PEPP) with be conducted “at a significantly higher pace” over the coming quarter – the third calendar quarter – than during the first months of the year.
Sep 9: net asset purchases under the under the pandemic emergency purchase program (PEPP) to be moderately lower in the fourth quarter than in previous two quarters as assessment of financing conditions and inflation outlook shows favourable financing conditions can be maintained.
Dec 16: due to progress on economic recovery and toward inflation target, net asset purchases under pandemic emergency purchase programme (PEPP) to be discontinued at the end of March 2022. PEPP was launched in March 2020 and in Dec. 2020 it was expanded to 1.85 trillion euros with its life set to end in March 2022, or until the pandemic crises phase is over. Horizon under which payments from maturing securities will be reinvested under PEPP extended to at least the end of 2024.
Since October 2014 ECB has been purchasing bonds under one or more asset purchase programs (APP), with the monthly amount fluctuating over time. In Sept. 2019 ECB restarted asset purchases at a monthly pace of 20 billion euros as of November 2019 after the previous programme of 15 billion monthly purchases, which began in Oct. 2018, ended in Dec. 2018.
In line with step-by-step reduction in asset purchases and to ensure monetary policy remains consistent with inflation stabilizing at its target, ECB will raise its purchase of net assets to 40 billion euros a month in the second quarter of 2022 and then 30 billion in the third quarter. From the beginning of the fourth quarter monthly net asset purchases of 20 billion will be maintained for as long as necessary to reinforce accommodative impact of policy rates. Governing council expects net purchases to end shortly before it starts to raise key rates. Principal payments from maturing securities purchases under APP to be reinvested for an extended period of time past date it starts raising rates and for as long as necessary to maintain favourable liquidity conditions and ample degree of monetary accommodation.
FIJI
Jun 1: Reserve Bank board on May 27 lowers the interest rate it charges financial institutions that borrow under its Import Substitution and Export Finance Facility (SEFF), the Disaster Rehabilitation and Containment Facility (DCRF) and the housing facility to 0.25 percent from 1.0 percent. The move aims to reduce the negative impact of the second wave of COVID-19 on households and businesses.
July 30: At its meeting on July 29, Reserve Bank board approves additional funding of $200 million to its Disaster Rehabilitation and Containment Facility (DRCF) along with a limited a guarantee targeting micro, small and medium enterprises, a streamlined debt recovery process and the removal of related fees and charges by participating financial institutions for 2 years. The revision comes after the economy minister on July 16 says the government will fully subsidise interest payments on loans disbursed under DRCF for the first 2 years. RBF says this aims to provide relief to many businesses by helping them maintain operations and support employment during the pandemic.
Mar 17: refinancing rate raised 50 bps to 8.50% due to growing inflationary pressures from higher commodity prices and persistently weak exchange rate. At this stage, there is no apparent need for additional rate hikes this year.
Apr 28: refinancing rate raised 100 bps to 9.50% due to above-target inflation and intensified inflationary pressures. Further monetary tightening will depend on inflation expectations.
Aug 4: monetary policy rate raised 50 bps to 10.0% to prevent high inflation expectations from becoming entrenched. Central bank will maintain a contractionary policy for a protracted period and/or will tighten further, if necessary.
Dec 8: refinancing rate raised 50 bps to 10.50% to make sure a prolonged high level of inflation does not transmit to long-term inflation expectations.
May 31: monetary policy rate cut 100 bps to 13.50% as inflation is expected to hit central target in June and remain in the target range in the third quarter as risks appear muted.
HUNGARY
Jun 22: base rate raised 30 bps to 0.90%, with the cycle of interest rate hikes to be continued until the outlook for inflation stabilizes around the target and inflation risks become evenly balanced. Central bank also phasing out the Funding for Growth Scheme Go! from April 2020.
Jul 27: base rate raised 30 bps to 1.20%, with cycle of interest rate hikes to continue until outlook for inflation stabilizes around the target and inflation risks become evenly balanced. Interest rate corridor also shifted upwards by 30 bps and use of long-term collateralized lending facility discontinued from today.
Aug 24: base rate raised 30 bps to 1.50% as monetary conditions tightened further to ensure price stability, prevent second-round inflationary effects and anchor inflation expectations. Interest rate corridor also raised by 30 bps and central bank continues to gradually phase out its crises management instruments affecting longer maturities, with weekly purchases of government securities decreased to 50 billion HUF from 60 billion starting on Aug. 23, focused on shorter-term securities. Central bank will not sell its stock of government securities but hold them to maturity and take a flexible approach to changing quantity and structure of weekly purchases and is ready to temporarily raise the volume of weekly purchases at any time to maintain market stability. Monetary Council will continue cycle of interest rate hikes until outlook for inflation stabilizes around target and inflation risks become evenly balanced. Central bank has successfully launched its Green Mortgage Bond Purchase Program, while phasing out crises tools, to support long-term sustainability. Amount available under the Bond Funding for Growth raised by 400 billion HUF to 1.550 billion.
Sep 21: base rate raised 15 bps to 1.65% as pace of monetary tightening slowed with inflation seen easing at the start of 2022 and fourth COVID-19 wave raising risks to economy. Weekly purchases of government securities lowered to 40 billion forint from 50 billion as of Sept. 27.
Oct 19: base rate raised 15 bps to 1.80% as the inflation outlook continues to be surrounded by upside risk which might prove to be more persistent than earlier expected.
Nov 16: base rate raised 30 bps to 2.10% as pace of tightening of monetary conditions increased due to a higher inflation path and increasing risks of second-round effects. Overnight deposit, overnight lending and one-week lending rates also raised 30 bps. As short-term risks in financial markets have increased, the Bank will respond through the one-week deposit rate and is ready to set this above the base rate at weekly tenders and also use swap facilities providing foreign currency actively. To reduce liquidity in banking system, Bank will cease to use the FX swap facility to provide forint liquidity and is also introducing new, limited, occasional and short-term central bank discount bills to support sterilization of liquidity in financial system.
Nov 30: monetary conditions tightened as interest rate corridor widened and made asymmetrical as integral part of new phase of monetary policy. Overnight deposit rate raised 45 bps to 1.60%, overnight and one-week collateralized lending rates raised 105 bps to 4.10% to be 2 percentage points over base rate.
Dec 14: base rate raised 30 bps to 2.40% with cycle of interest increases to continue until the outlook for inflation stabilizes around the central bank target in a sustainable manner and inflation risks become evenly balanced. Bank also closes Bond Funding for Growth Scheme and will no longer purchase corporate bonds, and is also ending its purchase of government securities and only intervene with occasional purchases to maintain a stable market. Government securities will be held until maturity.
ICELAND
May 19: key rate raised 25 bps to 1.0% to ensure inflation expectations remain anchored to target as economic growth is stronger than expected and inflation higher than expected.
Aug 25: key rate raised 25 bps to 1.25% as outlook for economic growth this year is better than expected in May and inflation is forecast to ease somewhat more slowly than projected.
Sep 29: countercyclical capital buffer raised 200 bps to 2.0%, effective in 12 months, and debt service-to-income ratios on consumer mortgages capped. For first time home buyers a maximum 40% ratio and 35% for other borrowers.
Oct 6: key interest rate raised 25 bps to 1.50% due to concern over inflation expectations despite a decline in underlying inflation.
Nov 17: key interest rate raised 50 bps to 2.0% as outlook for inflation has deteriorated since August due to persistent increases in global prices, a more rapid rebound in domestic economic activity and rising wage costs.
INDIA
Feb 4: Cash reserve ratio (CRR), which was cut 100 bps to 3.0% on March 27, 2020 for one year as part of series of measures to deal with COVID-19, to be gradually restored in two phases “in a non-disruptive manner.” From March 27, 2021 CRR to rise to 3.5% and then to 4.0% from May 22, 2021. On March 27, 2020 banks were allowed to use funds under the marginal standing facility (MSF) by dipping into Statutory Liquidity Ratio (SLR) up of an additional 1% of net demand and time liabilities. This facility will be available for a further 6 months to Sept. 30, 2021 from March 31, 2021 to “provide comfort to banks on their liquidity requirements.”
May 5: RBI to provide 500 billion rupees in immediate liquidity for three years so banks can provide fresh lending to ramp up COVID-related healthcare, including vaccine makers, vaccine importers, hospitals and oxygen suppliers. RBI will also conduct 3-year long-term repos so banks can support small industries while individuals and small businesses will become eligible for more lenient restructuring plans.
Feb 18: 7-day reverse repo rate cut 25 bps to 3.50% and forecast for 2021 economic growth lowered following a slower-than-expected rebound in the fourth quarter of 2020.
Jan 14: To buy $30 billion over 2021 with advance announcement aimed at giving markets certainty about commitment to deal with sharp appreciation, and thus support the economy’s dealing with continued ramifications of COVID-19 crises.
July 5: Ending program that provides long-term loans to the banking system against loans provided to small and micro businesses as of Oct. 1 or when the program’s 40 billion shekel is used up as there is less need for specific programs due to the recovery of the economy.
JAMAICA
Sep 30: policy rate raised 100 bps to 1.50% as rise in international commodity prices and shipping costs had a stronger-than-expected pass through to local prices, boosting already-elevated inflation expectations further. Rate will be raised further to ensure inflation target is met.
Nov 16: policy rate raised 50 bps to 2.0% to limit second-round effects of recent shocks and to guide inflation back to the target range.
Dec 20: policy rate raised 50 bps to 2.50% and further rate increases will be considered to limit second-round effects of commodity price shocks and to guide inflation back to the target range over the next 2 years.
JAPAN
Jun 18: Special Program to Support Financing in Response to the Novel Coronavirus (COVID-19) extended by 6 months until the end of March, 2022, with a view to continue supporting financing, mainly of firms, given that such financing is likely to remain under stress due to the impact of the pandemic, although it has improved.
Dec 17: Special Program to Support Financing in Response to the Novel Coronavirus (COVID-19) extended in part by 6 months to end September, 2022 as weakness in some segments of the financial positions of small and medium-sized firms remains, such as the face-to-face services industry.
Additional purchases of commercial paper (CP) and corporate bonds will be completed at the end of March, 2022, as scheduled. Until then, CP and corporate bonds will be purchased with an upper limit of the outstanding amount of 20 trillion yen. From April, the amount of purchases of CP and corporate bonds will be the same as prior to the pandemic so the amounts outstanding of these assets will decrease gradually to pre-pandemic levels, namely 2 trillion yen for CP and about 3 trillion yen for corporate bonds.
KAZAKHSTAN
Jul 26: Base rate raised 25 bps to 9.25% to lessen the risks connected with unwinding an inflationary spiral and return inflation to the target corridor in 2022.The National Bank is ready to take measures to further tighten monetary conditions in the event of an increase in pro-inflationary factors.
Sep 13: base rate raised 25 bps to 9.50% and disinflationary monetary policy will be continued while effectiveness of anti-inflationary measures are assessed against the backdrop of the risk of reduced monetary stimulus by the U.S. Fed and ECB.
Oct 25: base rate raised 25 bps to 9.75% as monetary policy stance continues to be normalized and a disinflationary policy pursued to ensure inflation returns to the target in 2022.
KUWAIT
Oct 12: to start unwinding measures taken since April 2020 to counter the pandemic after the banking sectors’ success in overcoming the first year of the crises.
KYRGYZSTAN
Feb 24: benchmark discount rate raised 50 bps to 5.50% as higher food prices push up inflation at the same time economic activity is strengthening. Additional changes to monetary policy are not excluded, with the rise in commodity markets to determine how persistent inflation will rise in the near future.
Apr 27: discount rate raised 100 bps to 6.50% as rising global commodity prices are pushing up inflation while domestic demand remains weak. Additional changes to monetary stance not excluded in the event of any risks.
Jul 26: discount rate raised 100 bps to 7.50% due to higher-than-expected inflation amid an improving global economy, and further rate hikes are not excluded.
Nov 29: discount rate raised 50 bps to 8.0% amid a growing inflationary background and growing inflation expectations. In the event of any risks, National Bank does not exclude possibility of making additional adjustments to monetary policy.
LESOTHO
Nov 23: CBL rate raised 25 bps to 3.75% to ensure domestic cost of funds remains aligned with rest of region but economic recovery remains vulnerable to further waves of COVID-19 and the emergence of new variants.
LIBERIA
Aug 20: monetary policy rate cut 500 bps to 200% to support a further strengthening of liquidity conditions and actualization of 3.6% economic growth target for 2021.
MEXICO
Jun 24: target for overnight interbank interest rate raised 25 bps to 4.25% to avoid adverse effects on inflation expectations, have an orderly adjustment of relative prices and enable the convergence of inflation to the target.
Aug 12: target for overnight interbank interest rate raised 25 bps to 4.50% to avoid any adverse effects on inflation expectations from increased inflation and enable an orderly adjustment of prices and the convergence of inflation to the target.
Sep 30: target for overnight interbank interest rate raised 25 bps to 4.75% to avoid the risk that shocks to inflation, although expected to be transitory, may affect price formation and inflation expectations.
Nov 11: target for overnight interbank interest rate raised 25 bps to 5.0% due to the risk to inflation and inflation expectations amid an uncertainty over how long and how large the factors boosting inflation will continue.
Dec 16: target for overnight interbank interest rates raised 50 bps to 5.50% as inflation forecasts for 2022 revised up and inflation expectations have also risen. Bank board will thoroughly monitor inflationary pressures for the next policy decision to determine a rate that is consistent with the trajectory needed for inflation to converge to the target.
MOLDOVA
Mar 5: reserve requirement on domestic currency deposits cut 200 bps to 30% to boost inflation and relaunch economic activity by lowering cost of funds for banks and ensure lending activity continues to rise.
Apr 5: reserve requirement on domestic currency deposits cut 200 bps to 28% at extraordinary committee meeting as liquidity declined in early April, mainly due to tax payments.
April 30: reserve requirement on domestic currency deposits cut 200 bps to 26% to mitigate and counteract the negative effects of the pandemic on the economy and strengthen the recovery.
Jul 30: base rate raised 100 bps to 3.65% as latest forecast shows inflation may exceed the upper limit of target range due to rising domestic demand in an environment of rising global inflation.
Sep 3: base rate raised 100 bps to 4.65% as there is still a risk of persistent inflationary pressures.
Oct 5: base rate raised 85 bps to 5.50% as it continues to gradually tightens monetary policy in order to ease the inflationary pressures generated by second-round effects from the rise in global prices, production and distribution costs, and energy and food.
Dec 3: base rate raised 100 bps to 6.50% to create the monetary conditions necessary to temper the growth of consumer prices.
MONGOLIA
Mar 24: further 350 billion tughrik in longer-term refinancing added to soften financial conditions.
MOZAMBIQUE
Jan 27: monetary policy interest rate raised 300 bps to 13.25% due to a substantial upward revision of the inflation outlook from the continued depreciation of the metical, a worsening of the risks and uncertainties from the accelerated spread of COVID-19, natural disasters and military instability.
Sep 10: mandatory reserve ratio on domestic liabilities cut to 10.50% from 11.50% and foreign currency ratio cut to 11.50% from 34.50% to provide more liquidity to the economy.
NEW ZEALAND
Jul 14: asset purchases under the Large Scale Asset Purchase (LSAP) program to end July 23, 2021 to meet the inflation and employment objectives as the major downside risks of deflation and high unemployment have receded.
Oct 6: official cash rate raised 25 bps to 0.50% and RBNZ expects to continue tightening over time, with future moves contingent on the medium-term outlook for inflation and employment.
Nov 24: official cash rate raised 25 bps to 0.75% and interest rate likely to be raised progressively to above the neutral rate as near-term risks to inflation were skewed to the upside and this carries the risk that higher inflation becomes embedded.
NORTH MACEDONIA
Mar 10: key interest rate cut 25 bps to 1.25% to reduce the cost of banks and credit to support the private sector and mitigate the effects of the pandemic on the domestic economy.
NORWAY
Sep 23: policy rate raised 25 bps to 0.25% and rate will most likely be raised again in December as economy is normalizing and economic activity higher than before the pandemic.
Dec 16: policy rate raised 25 bps to 0.50% and will most likely raise the rate again in March, 2022, as the rate is moved back to a more normal level. Countercyclical capital buffer raised 100 bps to 2.0% as of Dec. 31, 2022 and will again be raised in the first half of 2022 to 2.5%, effective one year later.
PAKISTAN
Sep 20: policy rate raised 25 bps to 7.25% as pace of economic recovery has exceeded expectations and this can lead to a rise in inflation over time.
Nov 19: policy rate raised 150 bps to 8.75% as there is a need to proceed faster to normalize monetary policy to counter inflationary pressures and preserve stability with growth.
Dec 14: policy rate raised 100 bps to 9.75% but monetary policy settings now expected to remain broadly unchanged in the near term as the goal of mildly positive interest rates on a forward-looking basis is close to being achieved.
PARAGUAY
Aug 23: monetary policy rate raised 25 bps to 1.0% as inflation, even if it is largely due to external factors, could eventually generate second-round effects and impact inflation expectations.
Sep 21: monetary policy rate raised 50 bps to 1.50% as it is appropriate to continue normalizing monetary policy to ensure the medium-term inflation target is met.
Oct 21: monetary policy rate raised 125 bps to 2.75% and current cycle of adjustment should continue with rate raised same amount in November.
Nov 22: monetary policy rate raised 125 bps to 4.0%, with Bank to closely monitor internal and external economic variables to determine future course of monetary policy.
Dec 21: monetary policy rate raised 125 bps to 5.25% as second-round effects of external shocks on inflation may become relevant and affect medium-term inflation expectations amid improved economic activity and an accommodative monetary policy stance.
PERU
Aug 12: reference interest rate raised 25 bps to 0.50% but monetary policy stance remains expansionary and the real monetary policy interest rate is at historic lows.
Sep 9: reference interest rate raised 50 bps to 1.0% but monetary policy stance remains expansionary and policy rate is still historically low and current decision does not necessarily imply a cycle of successive increases in the rate.
Oct 7: reference interest rate raised 50 bps to 1.50% but expansionary monetary policy to remain expansionary and the withdrawal of monetary stimulus will be gradual.
Nov 11: reference interest rate raised 50 bps to 2.0% as inflation expectations remain above the upper limit of the target range. Monetary policy remains expansionary and today’s rate hike does not imply a cycle of successive interest rate hikes.
Dec 9: reference interest rate raised 50 bps to 2.50% but expansionary monetary policy stance will be maintained for some time as monetary stimulus is only being withdrawn gradually.
POLAND
Oct 6: reference rate raised 40 bps to 0.50% and reserve requirement ratio raised 150 bps to 2.0% to ensure inflation meets the target in the medium term.
Nov 3: reference rate raised 75 bps to 1.25% to reduce the risk inflation remains elevated amidst a continued economic recovery.
Dec 8: reference rate raised 50 bps to 1.75%, with policy decisions in coming months continue to be aimed at reducing inflation to a level consistent with the target in the medium term.
ROMANIA
Oct 5: monetary policy rate raised 25 bps to 1.50%, along with deposit and lending rates, as inflation is expected to rise significantly higher than expected in the short term due to higher energy prices, particularly natural gas.
Nov 9: monetary policy rate raised 25 bps to 1.75% as latest forecast shows additional worsening of the inflation outlook, with consumer prices expected to remain on a steep uptrend until mid-2022.
Nov 9: monetary policy tightened further with repo rate in October raised 16 bps to 0.27% from 0.11%, the average rate since the beginning of 2021.
RUSSIA
Mar 19: key interest rate raised 25 bps to 4.50% as faster-than-expected economic recovery and rising inflation calls for a return to neutral monetary policy, open to further rate hikes.
Apr 23: key interest rate raised 50 bps to 5.00% as rapid recovery of demand and elevated inflationary pressures call for an earlier return to neutral monetary policy, with the rate forecast to average 5.0 to 5.8 percent this year and 5.3 to 6.3 percent in 2022. Further rate hikes to be considered.
Jun 11: key interest rate raised 50 bps to 5.50%, with rising inflationary pressures amid a faster-than-expected economic recovery creating the necessity of further increases in the key rate to avoid a prolonged deviation of inflation from target.
Jul 23: key interest rate raised 100 bps to 6.50% to contain rising inflation and inflation expectations and curb the risk that inflation may exceed the target for a longer period.
Sep 10: key interest rate raised 25 bps to 6.75% and central bank open to raise the rate again to prevent high inflation expectations from pushing inflation further above its target.
Oct 22: key interest rate raised 75 bps to 7.50% and bank open to prospect of further key rate rises at upcoming meetings. Inflation forecast for 2021 and 2022 raised.
Dec 17: key interest rate raised 100 bps to 8.50% to return inflation to the target as inflation is developing above expectations, with the balance of risks markedly tilted to the upside, which may bring about a more substantial and prolonged upward deviation of inflation from the target. If the situation develops in line with the forecast, the Bank holds open the prospect of further key rate increases at upcoming meetings.
SAUDI ARABIA
Jun 22: Deferred Payment Program, one of the Saudi Central Bank’s private sector financing support programs, extended for 3 months from July 1 to September 30, 2021 for micro, small and medium enterprises (MSMEs) that are still affected by COVID-19 precautionary measures. Since program was launched on March 14, 2020, it has benefitted more than 106,000 contracts with a total value of deferred payments of 167 billion riyal.
Sep 29: Deferred Payment Program extended another 3 months to Dec. 1, 2021 from Oct. 1.
Dec 30: Deferred Payment Program extended another 3 months to March 31, 2022 for the benefit of micro, small and medium enterprises that continue to be affected by the COVID-19 precautionary measures. Since its launch on March 14, 2020, the program has benefited more than 107,000 contracts with a value of 181 billion riyal in deferred payments.
SERBIA
Oct 7: Average rate at Oct. 6 auction of reverse repurchase securities raised 13 bps to 0.24 percent as the first step to tighten monetary conditions. As of October, auctions of repo securities under which banks had been provided with 3-month dinar liquidity at 0.10% also terminated.
SEYCHELLES
Jun 30: monetary policy rate cut 100 bps to 2.0% as interest rate corridor realigned downwards to lower market interest rates and support the economy that remains weak. Bank board also approves lowering minimum reserve requirement on banks’ rupee deposits 300 bps to 10% if liquidity conditions were to warrant this.
Jul 14: minimum reserve requirement on domestic rupee deposit liabilities cut 300 bps to 10.0%.
SIERRA LEONE
Dec 24: monetary policy rate raised 25 bps to 14.25% to safeguard price and financial system stability as inflationary pressures are expected in the near period while growth is expected to continue but at a slower pace than previously expected.
SINGAPORE
Oct 14: Slope of Singapore dollar policy band raised slightly from zero percent while width of band and level at which it is centered is unchanged to ensure price stability over the medium term. Growth in Singapore likely to remain above trend in quarters ahead.
SOUTH AFRICA
Nov 18: repurchase rate raised 25 bps to 3.75% to keep inflation expectations well anchored moderate future path of rates given the expected trajectory for headline inflation and upside risks.
SOUTH KOREA
Aug 26: base rate raised 25 bps to 0.75% and degree of monetary policy accommodation will be gradually adjusted as economy is expected to continue its sound growth and inflation to run above the 2.0% target for some time despite uncertainties over the virus.
Nov 24: base rate raised 25 bps to 1.0% and will appropriately adjust the degree of monetary policy accommodation as the economy is expected to continue its sound growth and inflation to run above the target level for a considerable time.
SRI LANKA
Aug 19: deposit and lending rates raised 50 bps to 5.0% and 6.0%, respectively, and statutory reserve ratio raised 200 bps to 4.0% to help address imbalances in the external sector of the economy and preempt the buildup of any excessive inflationary pressures amidst improved growth prospects.
TAIWAN
Dec 16: Deadline for banks to accept new loans to small and medium-sized enterprises (SMEs) under the Bank’s Special Accommodation Facility to Support Bank Credit to Small and Medium-Sized Enterprises from April 2020 will remain Dec. 31, 2021 as previously announced. But facility’s loans to banks, which were due for repayment by Dec. 31, 2021, will be rolled over to June 30, 2022 to continue offering assistance by easing corporate funding burdens and to help affected enterprises recover.
TAJIKISTAN
Jan 28: Reserve requirement on bank’s domestic currency liabilities raised 200 bps to 3.0% and requirement on foreign currency liabilities raised 400 bps to 9.0% due to the threat to the inflation target from rising pressure on prices. In April 2020 NBT cut the reserve requirement on domestic currency to 1.0% and on foreign currency to 5.0% to support banks’ need for liquidity, with the cut effective from April 1, 2020 to Dec. 31, 2020.
Feb 5: refinancing rate raised 25 bps to 11.0% to ensure inflation returns to the target range as inflationary pressures and inflation expectations are rising.
Apr 27: refinancing rate raised 100 bps to 12.0% as inflationary pressures are rising and inflation expectations are high amidst an improving global economy and rising prices for food and fuel.
Jul 27: refinancing rate raised 100 bps to 13.0% in response to growing inflationary pressure and expectations to return inflation to target range.
Oct 22: refinancing rate raised 25 bps to 13.25% in response to potential risks to the economy from inflationary pressures and inflation expectations.
TURKEY
Feb 24: Reserve requirement on all lira deposits raised 200 bps while upper limit on how much foreign exchange banks can hold cut to 20% from 30% and upper limit on gold cut to 15% from 20%. Renumeration rate on banks’ required reserves raised 150 bps to 13.50%.
Mar 18: policy rate raised 200 bps to 19.0% due to adverse outlook for inflation and tight monetary policy stance to be maintained decisively and for extended period until there is a permanent fall in inflation.
Sep 23: policy rate cut 100 bps to 18.0% as past monetary tightening is now dampening credit, domestic demand and commercial loans.
Oct 21: policy rate cut 200 bps to 16.0%, with limited room for further rate cuts the rest of the year due to transitory supply-side factors.
Nov 18: policy rate cut 100 bps to 15.0% and Bank expects impact on price increases from transitory effects of supply-side factors and other factors beyond its control will persist through the first half of 2022. Committee will consider completing the use of the limited room implied by these factors in December.
Dec 16: policy rate cut 100 bps to 14.0% but cumulative impact of recent decisions will be monitored in the first quarter of 2022 and during this period the policy framework will be reassessed.
UGANDA
Feb 15: Credit Relief Measures (CRM) and Covid-19 Liquidity Assistance Program (CLAP) extended 6 months from April 1 to ensure financial institutions that come under liquidity stress remain solvent so they can support credit extension.
Jun 16: central bank rate cut 50 bps to 6.50% as economic recovery still requires monetary policy support due to excess capacity and inflation will likely remain below target in the near term while there is little space for fiscal policy to respond to fragile economic growth.
Oct 14: credit relief measures (CRMs) expired on Sept. 30, but BoU shall on a case-by-case basis, continue with interventions for those sectors that remain under lockdown. COVID-19 Liquidity Assistance Program (CLAP) maintained to ensure financial stability until the economic situation normalizes.
UKRAINE
Mar 4: policy rate raised 50 bps to 6.50% due to significant rise in inflationary pressures and bank ready to raise key policy rate more resolutely to curb fundamental inflationary pressures, stabilize expectations and bring inflation back to target.
Apr 15: policy rate raised 100 bps to 7.50% to gradually slow inflation in the second half of this year and return it to target in the first half of 2022. If underlying inflationary pressures rise more than expected, there could be the need for further monetary policy tightening.
Jun 17: policy rate maintained but anti-crises monetary tools being phased out, enhancing the effect of previous policy rate hikes and contribute to lower inflation. From July 1, the maximum maturity of long-term refinancing loans will be lowered to 3 years from 5 years, auction volumes will be cut to 4 billion UAH from 5 billion on August, and to 3 billion from September. From July 1, frequency of interest rate swap auctions cut to once per month from two times and maximum maturity will be lowered to 3 years from 5 years. If there are no significant shocks to financial markets, long-term refinancing and interest rate swaps to be fully phased out on Oct. 1, 2021. Operational design of monetary policy also changes, with maturity of certificates of deposits returned to pre-crises level of 7 days from 14 days.
Jul 22: policy rate raised 50 bps to 8.0% and forecasts to rise to 8.50% and then maintained at that level until Q2, 2022 to bring inflation back to target in 2022. Anti-crises measures continuing to be rolled back, with the interest rate on bank refinancing loans set at the policy rate plus 1 percentage point (up from the policy rate) and daily intervention in foreign exchange market lowered to US$5 million from $20 million.
Sep 9: key policy rate raised 50 bps to 8.50% and ready to take additional measures to return inflation to target if underlying inflationary pressures increase significantly and inflation expectations continue to worsen. All anti-crises measures – such as long-term refinancing tenders and interest rate swap auctions - to be stopped by beginning of fourth quarter and to boost efficiency of policy transmission maturity of refinancing loans cut to 30 days from 90 days.
Dec 9: policy rate raised 50 bps to 9.0% and Bank ready to raise rates further at the next monetary policy meeting if factors that are boosting inflation, including rising tensions with Russia and higher gas and food prices, continue to materialize.
UNITED ARAB EMIRATES
Apr 20: Integral parts of the Targeted Economic Support Scheme (TESS), the comprehensive scheme that covers all the Central Bank of the UAE’s measures in response to COVID-19, extended until June 30, 2022, with CBUAE saying it expects financial institutions to prioritise lending through TESS to the most negatively affected sectors, businesses and households. Under TESS institutions will continue to be eligible to access collateralized 50 billion dirham zero-cost liquidity facility to provide new loans and CBUAE’s financing for loan deferrals will be extended until the end of 2021.
Sep 23: Gradual and well-calibrated withdrawal of extraordinary stimulus measures to begin as UAE economy is recovering. Financing for loan deferrals to be phased out by end-2021 but looking at allowing banks to extend lower capital and liquidity buffers beyond the end of this year when they are scheduled to expire.
Dec 18: Several measures of the Targeted Economic Support Scheme (TESS) extended to June 30, 2022, including relief measures regarding banks’ capital buffers and liquidity and stable funding requirements.
Also, the loan payment deferral component of TESS, which was to expire Dec. 31 as the first phase of gradual exit from measures implemented during pandemic, will now continue until June 30, 2022.
Bank balances the gradual exit strategy and winding down of TESS with continued commitment to support economic recovery, with reduced cash reserve requirement and decrease in down payment for new mortgage loans remain in place.
UNITED KINGDOM
Dec 16: Bank rate raised 15 bps to 0.25% to return inflation sustainably to the target as recent data show a tight labour market that is continuing to tighten and the impact of Omicron variant on medium-term inflation is unclear. MPC sees a modest tightening of monetary policy over the forecast period likely to meet the inflation target.
UNITED STATES
Mar 8: Paycheck Protection Program Liquidity Facility (PPPLF) extended 3 months to June 30 to provide continued flow of credit to small businesses through the Paycheck Protection Program (PPP). Other active facilities, such as the Commercial Paper Funding Facility, the Money Market Mutual Fund Liquidity Facility and the Primary Dealer Credit Facility, have not had significant usage since summer of 2020 and will expire as scheduled on March 31.
Mar 17: New York Fed to cease regular purchases of agency commercial mortgage-backed securities at the conclusion of current schedule – due to “sustained smooth functioning of markets…” The purchase operation scheduled for March 23, 2021 is expected to be the last-regularly scheduled operation.
Nov 3: Due to the progress toward the Federal Reserve’s goals, the monthly purchase of Treasury securities and agency mortgage-backed securities to be lowered by $10 billion and $5 billion, respectively, later in November, with the same total reduction of $15 billion in December. This pace of reduction likely to continue unless there is a change in the economic outlook.
Dec 15: In light of inflation and the further improvement in the labor market, the monthly pace of Treasury securities will be reduced by $20 billion and by $10 billion for agency mortgage-backed securities. Beginning in January, the holding of Treasury securities will be increased by at least $40 billion a month and the holdings of mortgage-backed securities by at least $20 billion. Similar reductions in the pace of asset purchases is likely appropriate each month but the pace of purchases can be adjusted if warranted by changes in the economic outlook.
URUGUAY
Aug 11: monetary policy rate raised 50 bps to 5.0% to ensure inflation expectations are in line with its target, with future changes to monetary policy dependent on how inflation expectations react along with the economy and the health situation.
Oct 5: monetary policy rate raised 25 bps to 5.25% and central bank will continue with gradual exit of the most expansive phase of monetary policy for the remainder of 2021, taking into account the reaction of inflation expectations and the country’s health and economy.
Nov 11: monetary policy rate raised 50 bps to 5.75% to consolidate the process of lowering inflation expectations during the current economic recovery.
ZAMBIA
Feb 17: monetary policy rate raised 50 bps to 8.50% to contain rising inflation and inflation expectations and BOZ says it ready to adjust policy rate further upwards should further inflationary pressures persist.
Nov 24: monetary policy rate raised 50 bps to 9.0% to steer inflation to single digits in 2022 and to within the 6-8 percent target range by mid-2023.
ZIMBABWE
Feb 18: policy rate raised 500 bps to 40.0% taking into account current liquidity conditions in the market and the need to control speculative borrowing. Statutory reserve ratio for demand and/or call deposits doubled to 5.0% from 2.5% while ratio on time deposits maintained at 2.5% to incentivize banks to hold long-term liabilities that will facilitate long-term lending. Quarterly reserve money growth target reduced to 22.5% in 2021 from 25.0% in 2020.
Jun 28: reserve money growth target lowered to 20.0% per quarter from 22.5% to further tighten monetary policy.
Oct 28: Due to concern over the recent rise in inflation and the need to foster savings in the economy by having positive real interest rates and promote the appeal of the Zimbabwe dollar following measures taken: Policy rate raised 2000 bps to 60.0%, reserve requirement for demand/call deposits doubled to 10% while rate on savings and time deposits kept at 2.5%, minimum deposit rate for ZW$ savings and time deposit rates raised to 7.5% and 20%, respectively, from 5% and 10%, and target for quarterly growth in reserve money lowered to 10% from 20% for the fourth quarter of 2021 and for the first two quarters of 2022.
2019: 17 central banks tightened monetary policy and 67 eased, global net easing by 50 banks
2018: 43 central banks tightened monetary policy and 32 eased, global net tightening by 11 banks
2017: 28 central banks tightened monetary policy and 34 eased, global net easing by 6 banks
2016: 29 central banks tightened monetary policy and 46 eased, global net easing by 17 banks
2015: 48 central banks tightened monetary policy and 34 eased, global net tightening by 14 banks
JULY
In July the following 14 central banks cut their policy rates: Sri Lanka, Malaysia, Indonesia, Kazakhstan, Hungary, South Africa, Russia, Eswatini, Tajikistan, Lesotho, Bangladesh, Azerbaijan, Colombia and Honduras.
The rate cuts add up to a total of 590 basis points.
JUNE
In June the following 23 central banks cut rates: Uganda, Serbia, Ukraine, Armenia, Morocco, Namibia, Mozambique, Brazil, Costa Rica, Indonesia, Russia, Azerbaijan, Seychelles, Belarus, Paraguay, West African States, Hungary, Georgia, Philippines, Pakistan, Guatemala, Mexico and Colombia.
Policy rates were cut by a cumulative 1,340 basis points.
To protect its currency, Zimbabwe raised its rate, the first rate hike since Denmark's rate hike in mid-March, essentially for the same reason.
MAY
In May the following 26 central banks have cut rates: Malaysia, Brazil, Sri Lanka, Norway, Czech Republic, Tanzania, North Macedonia, Belarus, Vietnam, Mexico, Pakistan, Thailand, Iceland, Zambia, Turkey, South Africa, Lesotho, Eswatini, India, South Korea, Nigeria, Poland, Gambia, Romania, Liberia and Colombia.
Key rates were cut by a cumulative 2,080 basis points.
APRIL
The following 34 central banks cut rates 34 times in April: Sri Lanka, Kazakhstan, Eastern Caribbean, Uganda, Israel, Poland, Serbia, Mongolia, South Africa, Lesotho, Uzbekistan, Namibia, Eswatini, Philippines, Pakistan, Bangladesh, Peru, Mauritius, Mozambique, China, Mexico, Turkey, Paraguay, Ukraine, Russia, Tajikistan, Myanmar, Armenia, Georgia, Kenya, Zimbabwe, Rwanda, Botswana and Colombia.
Key rates were cut by a cumulative and net 3,135 basis points.
MARCH
In March the following 66 central banks cut rates 91 times: Australia (twice), Malaysia, USA (twice), Saudi Arabia (twice), Bahrain (twice), UAE (twice), Qatar (twice), Kuwait (twice), Jordan (twice), Hong Kong (twice), Macau (twice), Moldova (twice), Canada (three times), Paraguay (twice), North Macedonia, Argentina, Mauritius, United Kingdom (twice), Iceland (twice), Serbia, Mongolia, Ukraine, Norway (twice), New Zealand, South Korea, Sri Lanka, Czech Republic (twice), Egypt, Chile (twice), Costa Rica, Armenia, Turkey, Pakistan (twice), Vietnam, Tunisia, Morocco, Poland, Fiji, Trinidad & Tobago, Ghana, Sierra Leone, Brazil, Dominican Republic, Guatemala (twice), Honduras, Peru, Myanmar (twice),Taiwan, Philippines, Indonesia, South Africa, Honduras, Thailand, Namibia, Romania, Mexico, Eswatini, Seychelles, Lesotho, Kenya, Bangladesh, Democratic Republic of Congo, Albania, Zimbabwe, Cape Verde, India, Colombia, Central African States, Barbados, Papua New Guinea and Vanuatu.
Kazakhstan and Denmark stand out as the only central banks to have raised rates in March.
Key rates were lowered by a cumulative 7,243 basis points and by a net 6,953 points, excluding the cuts by Zimbabwe, Papua New Guinea and Vanuatu.
FEBRUARY
Fourteen central banks cut rates 15 times in February: Iceland, Thailand, Brazil, Honduras, Philippines, Russia, Belarus, Mexico, Argentina (twice), Namibia, Turkey, China, Indonesia and The Gambia.
Key interest rates were lowered by a cumulative 1,160 basis points.
Two central banks, the Czech National Bank and the National Bank of the Kyrgyz Republic, raised their rates for a net cut in rates of 1,060 basis points.
JANUARY
Eleven central banks cut rates 13 times in January: Argentina (3 times), North Macedonia, Turkey, South Africa, Malaysia, Kenya, Lesotho, Sri Lanka, Ukraine, Costa Rica and Azerbaijan. Key rates were lowered by a cumulative 1,175 basis points while Tajikistan raised its rate for a net cut in rates of 1,225 points.
DECISIONS IN 2020 BY MARKETS
Central banks worldwide took 674 policy decisions in 2020, with policy rates cut 256 times and only raised 13 times.
Central banks in developed markets decided on monetary policy 91 times in 2020, with nine banks cutting their rates 17 times: Australia (three), the United States (twice), Hong Kong (twice), Canada (three times), the UK (twice), Norway (three), New Zealand and Israel.
Denmark raised its rate but this is the context of a policy framework in which the Nationalbank pegs the krone to the euro. The rate hike should support the krone which has come under downward pressure as capital flows to more liquid currencies.
Emerging market central banks decided on monetary policy 198 times in 2020, with 23 banks cutting rates 82 times: Turkey (five times), South Africa (five times), Peru (two times), Malaysia (four times), Thailand (three times), Brazil (five times), Philippines (five times), Russia (four), Mexico (seven times), China (twice), Indonesia (five), the UAE (twice), Qatar (twice), South Korea (twice), Chile (twice), Czech Republic (three), Egypt (three), Pakistan (five times), Poland (three times), Taiwan, India (twice), Colombia (seven) and Hungary (twice) cutting policy rates.
After raising its rate in February, the Czech Republic reversed course in March and cut its rate.
Central banks in frontier markets decided on monetary policy 103 times in 2020, with 17 banks cutting rates 49 times: Argentina (8 times), Sri Lanka (five times), Kenya (three times), Ukraine (four), Bahrain (twice), Kuwait (twice), Jordan (twice), Mauritius (twice), Serbia (four), Morocco (twice), Tunisia (twice), Vietnam (three), Ghana, Romania (three), Bangladesh (three), Kazakhstan (twice) and Nigeria (twice)
Kazakhstan raised its rate once while Nigeria raised its reserve requirement.
Central banks in other markets have decided on monetary policy 255 times, with 45 banks cutting rates 107 times: North Macedonia (three times), Lesotho (five times), Azerbaijan (five), Honduras (four), Iceland (five times), Belarus (three), Costa Rica (three), Namibia (five times), The Gambia (twice), Saudi Arabia (twice), Macao (twice), Moldova (five), Mongolia (four), Trinidad & Tobago, Dominican Republic (twice), Guatemala (three), Paraguay (five), Armenia (four), Sierra Leone, Fiji, Eswatini (three times), Seychelles (twice), Democratic Republic of Congo, Central African States, Albania, Myanmar (three) Zimbabwe (twice), Cape Verde, Barbados, Vanuatu, Eastern Caribbean, Uganda (twice) Uzbekistan (twice), Mozambique (twice), Tajikistan (twice), Georgia (three), Rwanda, Botswana (twice), Tanzania, Zambia (twice), Liberia, Papua New Guinea, West African States, South Sudan (twice) and Malawi.
Kyrgyzstan, Tajikistan, Zimbabwe, Congo and Armenia raised their rates while Curacao raised its reserve requirement to curb liquidity.
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| Jan 9: minimum interest rate on Leliq notes cut 300 bps to 52.0% due to progress made in reaching a national agreement on prices
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