Latest moves of central banks - Turkey, Korea, Sweden, UK

[K.Karthik Raja]

Latest moves of central banks - Turkey, Korea, Sweden, UK
Monday, Mar 3
.
MUMBAI - Turkish central bank reduced lending and borrowing rates
by 25 basis points to 15.25% and 19.25%, respectively, in February as
economic growth is seen moderating over the medium-term.
In February, European Central Bank had left the refinancing rate
unchanged at 4.00%.
"Incoming data have confirmed that the risks to the outlook for
economic activity lie on the downside," said ECB President Jean-Claude
Trichet while acknowledging that upside risks to price stability
remain over the medium term.
However, Bank of England cut its official bank rate by 25 bps to
5.25% as the deepening credit crisis has cast uncertainty over
economic growth in the U.K.
Among other central banks, Sweden's Riksbank and the Reserve Bank
of Australia hiked interest rates, while Korea held interest rates
steady.
.
Following are the latest monetary policy moves of key economies:
.
ECONOMIES DATE MONETARY POLICY MOVE
.
.
TURKEY Feb 14 Central Bank of the Republic of
Turkey
lowered borrowing rate to 15.25% from
15.50%, and cut the lending rate to
19.25% from 19.50%. Turkey also cut
rates
on its liquidity borrowing window.
.
.
KOREA Feb 13 Bank of Korea keeps call rate target
steady
at 5%. Economic growth is seen strong
despite
slowdown in personal consumption. The
uncertainty over the credit crisis
has also
led to uncertain economic conditions,
the bank
said.
.
.
SWEDEN Feb 13 Riksbank hiked repo rate by 25 basis
points to
4.25% with an aim of getting
inflation
within the banks' target of 2% in the
next
two years as expectations are that
inflation
will remain elevated.
.
.
UK Feb 7 Bank of England cut official bank
rate by
25 bps to 5.25% as growth outlook has
declined
and the uncertainty about the credit
crisis
continues.
.
.
EUROPEAN UNION Feb 7 European Central Bank kept
refinancing
operations unchanged at 4% because of
upside
risks to inflation over the medium-
term. The
ECB reiterated its stance that price
stability
remained the highest priority of the
central
bank.
.
.
INDONESIA Feb 6 Bank Indonesia kept BI rate unchanged
at 8% as overall economic conditions
were
stable. But, the bank placed emphasis
on
inflation control.
.
.
AUSTRALIA Feb 5 Reserve Bank of Australia hiked cash
rate
by 25 basis points to 7% as the
consumer
price index in December rose to 3%,
above
expectations. Upside risks to
inflation also
remain strong.
.
.
BRAZIL Jan 31 Banco Central Do Brasil left Selic
Rate
unchanged at 11.25% after evaluating
the
economic scenario and inflation
prospects. The
monetary policy committee said it
will
monitor the macro-economic scenario.
.
.
PHILIPPINES Jan 31 Bangko Sentral ng Pilipinas cut
overnight
borrowing and lending rate 25 bps
each to
5% and 7%, respectively, on views
that
inflation target set of 4-5% this
year would
be met. Inflation expectations are
well
anchored and liquidity growth has
decelerated,
the bank said.
.
.
SOUTH AFRICA Jan 31 South African Reserve Bank kept repo
rate
unchanged at 11% in the light of
increased
uncertainty in global and domestic
markets
and moderation in domestic
consumption. But,
the central bank cautioned against
considerable risks to inflation
outlook.
.
.
HONG KONG Jan 31 Hong Kong Monetary Authority cut the
Base
Rate by 50 bps to 4.50% after the US
central
bank slashed rates Wednesday.
.
.
US Jan 30 Federal Open Market Committee cut
target
rate for federal funds 50 bps to
3.00% to
promote moderate growth and mitigate
risks
to economy. The Fed also cut its
discount
rate by 50 bps to 3.50%.
.
.
INDIA Jan 29 Reserve Bank of India held the
reverse repo
rate at 6.00% and the repo rate at
7.75%
citing inflationary pressures, going
forward.
RBI said inflation could rise even if
local
fuel prices were not hiked.
.
.
MALAYSIA Jan 29 Bank Negara Malaysia kept overnight
policy
rate at 3.50% as the economy
performed
well in 2007.
.
.
NEW ZEALAND Jan 24 Reserve Bank of New Zealand left the
official cash rate unchanged at
8.25%.
Ongoing inflationary pressures are
underpinned by an expansionary fiscal
policy and rising commodity prices.
.
.
CANADA Jan 22 Bank of Canada cut its overnight
target rate to 4.00% as core
inflation
and consumer price inflation slipped
below the banks' target. The central
bank hinted at further policy easing.
.
.
JAPAN Jan 22 Bank of Japan kept overnight call
rate
unchanged at 0.50%. Governor Fukui
said
the central bank may not rule out a
rate
cut if global conditions demand so.
.
.
CHINA Jan 16 People's Bank of China hiked reserve
requirement ratio by 50 bps. The move
was
aimed at strengthening liquidity
management
and curb excessive money and credit
growth.
.
.
THAILAND Jan 16 Bank of Thailand's Monetary policy
committee
kept repurchase rate at 3.25% as
growth
momentum had improved. However,
headline
inflation was expected to accelerate
due to
higher commodity prices, it said.
.
.
PAKISTAN Jan 1 State Bank of Pakistan raised
discount rate
50 bps to 10.50% as demand pressure
continued to be high and expectations
are that
inflation will remain high. The
central bank
also hiked the CRR by 100 bps for
deposits
up to one-year to mobile long-term
deposits.


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