Interest rates
King outvoted over rates increase again
The Monetary Policy Committee (MPC) of the Bank of England narrowly defeated governor Mervyn King at their policy meeting in June, voting 5-4 to keep the rate unchanged at 5.5%. This was the second time that the governor was on the losing end of an MPC…
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.
South Korea keeps key rate unchanged at 4.5%
The central bank of South Korea today decided to keep its key interest rate steady for the tenth month in succession, in an effort to boost economic recovery.
Peru's rates steady as inflation remains subdued
Peru's central bank yesterday held the overnight lending rate unchanged for the thirteenth consecutive month at its five-year high of 4.5%. Infaltion remains low and stable, despite rapid economic growth.
NZ interest rate up to record 8%
The markets were taken by surprise on 7 June when the New Zealand central bank raised its key interest rate to a record 8% from 7.75%, in efforts to stem inflation.
Brazil cuts lending rate to record low of 12%
Following the recovery of the Brazilian currency, which has held inflation at an eight-year low, the central bank lowered the benchmark lending rate by half a percentage point to a record low of 12%.
Bank of England maintains bank rate at 5.5%
The Bank of England's Monetary Policy Committee (MPC) has voted to maintain the official bank rate paid on commercial bank reserves at 5.5%.
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.
Bernanke: US inflation slowing, but risks remain
Federal Reserve Chairman Ben Bernanke says US core inflation "seems likely to moderate gradually over time", but there are "upside" risks to this forecast.
ECB's Papademos hints at rate rises
In one of the strongest hints at further rate rises for the eurozone later this year, Lucas Papademos, the Vice-President of the European Central Bank, said forecasts for economic growth in 2007 and 2008 are above the region's potential.
Fed announces FOMC's 2008 schedule
The US Federal Reserve, the American central bank, on 1 June announced the tentative schedule for next year's Federal Open Market Committee meetings.
Fed minutes reveal worries over inflation, housing
The minutes of the latest monetary policy meeting of the Federal Reserve contained few surprises, but underlined the fact that policymakers remained concerned about an "upward drift in inflation expectations".
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…
Nishimura sees third quarter inflation rise
Kiyohiko Nishimura, a board member of the Bank of Japan, says inflation is likely to rise in October this year.
Canadian growth beats central bank forecast
The growth of the Canadian economy during the first quarter of this year was stronger than the central bank expected official statistic released on 31 May revealed. The upside shock appears to have sealed the case for rate hikes later this year.
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…
Inflation breaches SARB's target
South Africa's targeted CPIX inflation has breached the South African Reserve Bank's 3% to 6% inflation target for the first time since August 2003.
Rates up in Norway and Malta, Poland steady
The central banks of Norway and Malta raised interest rates on 30 May, while rates remained unchanged in Poland.
The benefits of the SARB's transparency
This IMF Working Paper suggests that the increased transparency of monetary policy in South Africa since the late-1990s has helped to improve the accuracy of inflation and interest rate forecasts.
South Africa's Mboweni outlines inflation threats
Tito Mboweni, the governor of the South African Reserve Bank, has identified union-driven salary disputes and increasing food and oil prices as the main threats to the current inflation outlook in the country.
Israeli rates cut again
The Bank of Israel has cut interest rates by 25 basis points to 3.5%. The decision, announced on 28 May, comes as inflation remains below the central bank's 1 to 3% inflation target.