Monetary Policy Review for Central Bank of Republic of Turkey and Central Bank of Hungary as on 26h and 27th August 2014

The Central Bank of Hungary maintains
Base Rate as on 26th August 2014

The Central Bank of the Republic of Turkey holds its
Benchmark Repo Rate as on 27th August 2014

Monetary Policy Review for Central Bank of Republic of Turkey and Central Bank of Hungary as on 26h and 27th August 2014

The #CentralBankOfRepublic of #Turkey holds its #RepoRate at 8.25% per annum
And cuts its #OvernightRate by 75 #BasisPoints to 11.25% but maintained #BorrowingRate at 7.5% as on 27th August 2014.
Turkey's #HeadlineInflation rose to 9.32% in July 2014.
Data compiled and released by The Central Bank of Republic of Turkey

The #CentralBankOfHungary maintains #BaseRate at 2.10% per annum as on 26th August 2014.
#Hungary's #HeadlineInflation rose to 0.1% in July 2014.
Data compiled and released by The Central Bank of Hungary

#MagyarNemzetiBank #MonetaryPolicy
#Inflation #MonetaryPolicy #CRBT #TurkiyeKumhuriyetMerkezBankasi

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India's Consumer Price Index for last 3 months as on July 2014

India's Consumer Price Index for month of July 2014

India's Consumer Price Index for month of June 2014

India's Consumer Price Index for month of May 2014

India's Inflation Update for last 3 months as on July 2014: Inflation at Consumer Price level – Retail Inflation data . .

India's Annual Inflation rate based on all India general Consumer Price Index CPI for July 2014 stood at 7.96% as compared to 7.46% for June 2014 . .

CPI for June 2014 released on 12th August 2014 . .

Next release is on 12th September 2014 for August 2014.

#IndiaInflationData #CPI #ConsumerPriceIndex #IndiaInflationIndex #Inflation #India #RetailInflation

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Bank of England and ‪Central Reserve Bank of Peru Policy Rate highlights as on 7th and 8th August 2014.

Bank of England Monetary Policy as on 7th August 2014

Central Reserve Bank of Peru Monetary Policy as on 8th August 2014

#BankOfEngland and ‪#‎CentralReserveBankOfPeru Policy Rate highlights as on 7th and 8th August 2014.

Bank Of England #BOE maintains its #BankRate at 0.5% pa and asset purchase programme
at 375 Billion Pounds at its meeting on 7th August 2014, next due as on 4th Sep 2014.
#CurrentInflation at 1.9% based on #CPI with next due on 19th Sep 2014. Data compiled and released by Bank of England

‪Central Reserve Bank Of Peru‬ maintained its MonetaryPolicyReferenceRate at 3.75 % as on 8th August 2014. Data compiled and released by Central Reserve Bank of Peru,

‪#‎CRBP‬ ‪#‎Peru‬ ‪#‎MonetaryPolicyRate‬ ‪#‎PolicyRate‬
#Inflation #ConsumerPriceInflation #England #MonetaryPolicy

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BOJ Bank of Japan holds policy in the second week of March

10th March 2014

 Japan's central bank maintained its goal of boosting the monetary base by an annual 60-70 trillion yen and voiced growing confidence about rising investment and industrial production though it also acknowledged that exports had "recently leveled of more or less."

 
   The Bank of Japan (BOJ), which embarked on an aggressive easing campaign in April 2013 to rid the country of 15 years of deflation, repeated that the economy "is expected to continue a moderate recovery as a trend, while it will be affected by the front-loaded increase and subsequent decline in demand prior to and after the consumption tax hike."
  

    Japan's government is raising the sales tax rate to 8 percent from 5 percent on April 1 to reduce its deficit and slow down the growing debt, and there is speculation that the BOJ will boost its stimulus to make up for any economic slowdown and to ensure that the bank meets its target of boosting inflation to 2 percent.

   
However, BOJ officials have often downplayed this speculation, arguing the economy can weather the impact of the tax rise. In 1997, when the sales tax was raised to 5 percent from 3 percent, the economy went into recession.

 
  Last month a key aid to Prime Minister Shinzo Abe told Reuters that the BOJ can wait until summer and evidence on how the economy is handling the impact of the tax rise before it decides whether to ease policy further, a sign that the government is not putting any pressure on the central bank to immediately increase its stimulus measures.


   Japan's Gross Domestic Product expanded by a lower-than-expected 0.2 percent in the fourth quarter from the third quarter for annual growth of 2.6 percent, still the third quarter in a row with accelerating growth.



    Japan's consumer prices have been rising since June following 12 consecutive months of deflation though inflation eased slightly to 1.4 percent in January from December's 1.6 percent.
 

   The BOJ repeated that inflation, excluding the impact of the tax rise, is likely to be around 1.25 percent for some time.
 

    Japan's exports fell to 5.252 trillion yen in January from December's 6.109 trillion, the lowest since January 2013.


    "Overseas economies - mainly advanced economies - are starting to recover, although a lackluster performance is still seen in part," the BOJ said, repeating last month's statement.
 

    The yen has been weakening since October 2012 - it was trading at 78 to the U.S. dollar on Oct. 1, 2012 - through 2013 when it ended at 105.28 to the dollar. This year it has firmed slightly but has remained above 100 to the dollar and was trading at 103.35 to the dollar earlier today.

    In April last year, the BOJ said it aimed to expand Japan's monetary base to 270 trillion yen by the end of 2014 from 138 trillion at the end of 2012. By the end of 2013, the monetary base was projected to rise to 200 and in a separate statement today the BOJ said it hit 202 trillion by the end of December 2013 and 205 trillion by the end of February

BOJ holds policy, stronger investment, industrial output - Central Bank News

Uganda Central Bank holds Interest rates in the first week of March

4th March 2014

Uganda's central bank maintained its Central Bank Rate (CBR) at a neutral level of 11.5 percent but said there were potential risks of stronger inflationary pressures from currency depreciation, stronger domestic demand and higher food prices while a possible decline in foreign aid was posing a source of uncertainty for the country's balance of payments and economy.
    The Bank of Uganda  (BOU), which cut its CBR rate by 50 basis points in 2013, cut its forecast for core inflation to 4-5 percent over the next few months, down from February's forecast of 5-6 percent in the first half of 2014, but added that inflation was then expected to rise to between 5.5 percent and 6.5 percent over the next 12 months.
    Uganda's headline inflation rate eased to 6.7 percent in February from January's 6.9 percent while core inflation, which excludes food, energy and utilities, fell to 3.7 percent in February from 4.6 percent. The BOU attributed the lower inflation rate to a 7.0 percent appreciation of the shilling in the 12 months to 2014.
    After strengthening last year, Uganda's shilling was hit last week after foreign aid donors, including the World Bank, withheld or threatened to withhold aid in reaction to new legislation that toughens the punishment for homosexuals.
    The drop in the shilling started last Wednesday with dealers saying the central bank had intervened and sold dollars to stop the decline. On Thursday the central bank continued to support the shilling and then on Friday the central bank confirmed it was selling foreign currency.
    Late on Thursday the World Bank said it was postponing a US$ 90 million loan for Uganda's health system and Sweden's finance minster then on Friday said the law would make it hard to continue funding projects. Denmark and Norway have already withheld aid while the United States, the country's biggest donor, is reviewing its aid for health projects.
    The shilling fell to 2,534.9 to the U.S. dollar last Friday, down 2.8 percent from the previous week's close, but rose slightly this week to trade around 2,523 today, largely unchanged from 2,525 end-2013.
    Despite uncertainty surrounding foreign aid, the central bank said it expects Uganda's economy to be "relatively buoyant" in the 2013/14 fiscal year, which began on July 1, due to fiscal stimulus, a strengthening global environment, strong inflows of foreign direct investment and household consumption.
    "However, there are risks to this growth outlook emanating from weak bank credit growth," the BOU said.
    Last month the BOU forecast growth in 2013/14 of 6.0 to 6.5 percent and said banks' credit to households had risen by 38 percent in December.
    Uganda's Gross Domestic Product contracted by 0.6 percent in the third calendar quarter from the second quarter for annual growth of 2.2 percent, down from growth of 5.8 percent in the second quarter.

Uganda holds rate, foreign aid drop source of uncertainty - Central Bank News

Egypt Central Bank maintains Interest rates, sees limited inflation risks - Central Bank News

27th February 2014

Egypt's central bank held its main policy rates steady, including the benchmark overnight deposit rate at 8.25 percent, saying "pronounced downside risks to domestic GDP combined with the persistently negative output gap since 2011 will limit upside risks to the inflation outlook going forward."
    The Central Bank of Egypt (CBE), which has held rates steady this year after cutting by 100 basis points in 2013, said downside risks to the global economy from the challenges facing the euro area and softening growth in emerging markets could pose risks to the domestic economy.
    Egypt's economy has remained weak since political uprisings in 2011 and in the third quarter of 2013 - the first quarter of the 2013/14 fiscal year - Gross Domestic Product expanded by only 1.04 percent from the same 2012 quarter. It was the seventh quarter in a row with declining growth. In the 2012/13 fiscal year, Egypt's economy grew by 2.1 percent.
   The lack of economic growth is leading to high unemployment and in the fourth quarter of 2013 the unemployment rate was steady at 13.4 percent from the third quarter, highs not seen for decades.
    The economy was characterized by modest growth in manufacturing and construction while tourism and petroleum sectors declined in the first fiscal quarter.

    "Investment levels remained low given the heightened uncertainty that faced market participants since early 2011 and weak credit growth to the private sector," the CBE said.
    The CBE said upside risks to inflation had continued to ease as international food prices were unlikely to rise due to recent global developments and it projects inflation will ease in coming months.
    Egypt's headline inflation rate declined to 11.4 percent in January from 11.7 percent in December and November's 12.97 percent, a high for 2013 and the highest since February 2009.
    Core inflation also eased to 11.7 percent in January from 11.9 percent in December.
    Economists had expected the central bank to maintain rates, following a surprise rate cut in December to boost growth.

Egypt maintains rates, sees limited inflation risks - Central Bank News

Hungary Central Bank cuts Interest rates by 15 bps in the third week of February

18th February 2014

Hungary's central bank cut its base rate by another 15 basis points to 2.70 percent, its 19th cut in a row, but signaled that it may call a halt to further cuts by saying it would first decide on further moves following a review of the economic outlook in next month's economic forecast.
    The National Bank of Hungary, which has cut rates by 430 basis points since embarking on an easing cycle in August 2012, noted a deterioration in investors' view of Hungary and other emerging markets during the recent volatility in global financial markets, with the country's bond yields rising and higher volatility in the forint's exchange rate.
    "In the council's judgement, a cautious approach to policy is warranted due to uncertainty related to the global financial environment," the central bank said.
    However, the central bank also said Hungary's position was stronger than other emerging market economies, pointing to a decline in its external debt and a surplus in the current account that has reduced the country's reliance on foreign investors.
    But the central bank acknowledged that room for manoeuvre in monetary policy was influenced by investors' perception along with how well inflation was approaching its 3.0 percent target.

    "The Monetary Council will decide on the need and possibility for continuing the easing cycle after a comprehensive assessment of the macroeconomic outlook and developments in perceptions of the risks about the economy in view of the baseline projection and alternative scenarios of the March forecast," the central bank said.
     Hungary's headline inflation rate fell to zero in January from 0.9 percent in December while the central bank's own gauge of underlying inflation showed a rise in core inflation to 1.6 percent in January from 1.1 percent in December.
    The drop in inflation was due to a moderation of fuel prices and the central bank said its own inflation gauge indicated moderate inflationary pressures due to weak domestic demand and low external inflation, helping anchor inflation expectations.
   "Domestic real economic factors are expected to continue to have a disinflationary impact, although to a declining extent, as activity rises further," the central bank said. The bank has said it expects inflation to move back toward its 3.0 percent target by the second quarter of 2015.
    Economic growth in Hungary is likely to continue to strengthen this year and next and while employment is rising, the central bank said unemployment still exceeds the long-term level and there is unused capacity so inflationary pressures are likely to remain subdued over the medium term.
    Hungary's Gross Domestic Product expanded by a higher-than-expected 0.6 percent in the fourth quarter from the third quarter for annual growth of 2.7 percent, up from 1.8 percent, and the central bank said growth should pick up further in the quarters ahead, helped by higher corporate investment.
    But growth in real incomes will be partly offset by continued reduction in debt that was accumulated in the years before the financial crises.
    From August 2012 the central bank cut rates in 25-basis point increments until August 2013 when it reduced the pace of rate cuts to 20 basis points following an large outflow of capital from emerging markets, including Hungary. The central bank continued cutting rates in 20-basis points increments until last month when it reduced this to 15 basis points, as this month.
    Hungary's forint currency has been depreciating against the euro since mid-2012 and has continued to decline this year. The forint was trading at 310.33 to the euro today, down 4.3 percent since the beginning of the year.

Hungary cuts rate by 15 bps, to review stance in March - Central Bank News

South Korea Central Bank holds Interest rates in the second week of February

12th February 2014

South Korea's central bank maintained its base rate at 2.50 percent, as expected, saying the economic recovery is continuing and inflation will remain low for the being, due to stable international commodity prices, but eventually rise.
    The Bank of Korea (BOK), which cut its rate by 25 basis points in 2013, also said it expects the global economy to sustain its "modest" recovery going forward but it could be affected by changes in global financial market conditions from the U.S. Federal Reserve's tapering of quantitative easing and weaker growth in some emerging markets.
    Some of the indicators related to domestic demand in Korea have recently slumped, the BOK said, but exports continue to rise, sustaining the overall economic expansion.
    Korea's Gross Domestic Product expanded by an annual 3.9 percent in the fourth quarter of last year, up from 3.3 percent in the third quarter, for average 2013 growth of 2.8 percent, up from 2.0 percent in 2012, and the strongest growth in two years.
    "The Committee expects that the domestic economy will maintain a negative output gap for the time being going forward, although it forecasts that the gap will gradually narrow," the BOK said.

    Last month the BOK forecast that Korea's economy would expand by 3.8 percent in 2014 and then accelerate to 4.0 percent in 2015.
    Korea's inflation rate averaged 1.3 percent in 2013, far below the BOK's target range of 2.5-3.5 percent, but in its latest forecast the bank expects inflation this year to rise to 2.3 percent and then to 2.8 percent in 2015.
    In the first half  of this year inflation is expected to remain below the bank's target range but then rise in the second half.
    In January, Korea's headline inflation rate was steady at 1.1 percent from December.
    The BOK said Korean stock prices had recently rebounded and the won appreciated, reversing a depreciation of the won and lower stock prices due to the instability of international financial markets and outflows of foreigners' stock investment funds.
    Against the U.S. dollar, the won depreciated in the first half of 2013 before rebounding in the second half to end the year only 0.7 percent firmer. Since the start of the year, the won has eased 0.6 percent, trading at 1062.4 to the dollar today.
    Against the Japanese yen, the won has been rising since October 2011 when it hit a low of 15.6 and declined to 10 to the yen around the end of 2013, a rise of almost 36 percent. Since the start of this year, the won has eased slightly but was still trading at 10.36 today.
    Last month the governor of the BOK, Kim Choongsoo said the rapid depreciation of the yen against the won over the last year has hurt the South Korean industries that compete directly with Japan - such as steel, autos, machinery and electrical appliances - and any further depreciation of the yen would cause widespread pain to South Korea's exporters.
     However, he also ruled out a competitive devaluation of the won


South Korea holds rate, recovery continues, inflation low - Central Bank News

South Korea Central Bank holds Interest rate steady, sees recovery, higher inflation

8th January 2014

South Korea's central bank held its base rate steady at 2.5 percent, as expected, and maintained its recent view that the country's economic recovery is continuing in line with its growth trend while exports and consumption have continued to improve.
    The Bank of Korea (BOK), which cut its rate by 25 basis points in 2013, also said it expects inflation to gradually rise but remain low for the time being, largely due to stable international agricultural prices.
    Korea's headline inflation rate eased to 1.1 percent in December from 1.2 percent in November for an average rate of 1.3 percent for 2013, down from 2.2 percent in 2012.
    The BOK targets annual inflation of 2.5-3.5 percent and in October forecast 2013 inflation of 1.2 percent and 2.5 percent inflation in 2014.
     Last month the BOK said it expects inflation to rise in 2014 as the domestic economy improves.
    Korea's Gross Domestic Product rose by 1.1 percent in the third quarter from the second quarter for annual growth of 3.3 percent, up from a 2.3 percent growth rate in the second quarter and 1.5 percent in the first quarter.

    "The Committee expects that the domestic economy will maintain a negative output gap for the time being going forward, although it forecasts that the gap will gradually narrow," the BOK said.
    The central bank said the global economy will sustain its modest recovery going forward though it added that this could be affected by changes in global financial markets from the U.S. Federal Reserve's tapering of quantitative easing.
     "Looking ahead, while paying close attention to developments in and the influences of external risk factors arising from shifts in major countries' monetary policies, the Committee will conduct monetary policy so as to keep consumer price inflation within the inflation target range over a medium-term horizon while supporting the continued recovery of economic growth," the BOK said.


Korea holds rate steady, sees recovery, higher inflation - Central Bank News

Mexico Central Bank too cuts rate 25 bps in the first week of September 2013

Mexico's central bank cut its target for the interbank rate by 25 basis points to 3.75 percent, a surprise to financial markets, saying economic growth this year and 2014 will be weaker than expected, putting downward pressure on inflation.

    The Bank of Mexico, which also cut its rate in March, said the downside risks to the economy had risen and growth this year will be "considerably" less than forecast, just as growth in 2014 will be below the forecast. In its latest quarterly inflation report released last month, the central bank cut its forecast for 2013 growth to 2.0-3.0 percent from a previous 3-4 percent.
    "On balance, there are prevailing risks to global economic growth and in this context, coupled with the absence of significant pressure on commodity prices, the outlook for global inflation is low," the central bank said, describing the global economy as having a mixed performance.
    Economic activity in Mexico slowed significantly in the second quarter, mainly due to a contraction of the industrial and services sectors, increasing the slack in the economy, and the central bank expects this to continue for an extended period. In addition, the government is also expected to make further progress in strengthening public finances.
    Mexico's Gross Domestic Product contracted by 0.74 percent in the second quarter from the first quarter for annual growth of only 1.5 percent, up from 0.6 percent in the first quarter, but well below growth in the previous three years.

     Mexico's inflation rate also fell more than expected to 3.5 percent in the first half of August, with core inflation below 2.5 percent, the bank said. In July, the headline inflation rate eased to 3.47 percent in July from 4.09 percent in June.
    While medium and long-term inflation expectations have remained stable, expectations for the end of this year have declined as the impact of recent supply shocks did not have second-round effects.
    "With regard to inflation risks in the short term, there is the possibility that the weakening of Mexico's economic activity is greater and more prolonged than expected and that could cause downward pressure," said the bank, known as Banxico.
    The central bank said in July that it expected inflation this year to be very close to its target of 3 percent, but said today that the slack in the economy points to lower-than-predicted inflation and even changes from a tax reform would only have a transitory impact and probably no second-round effects.
    The central bank noted the recent volatility and pressure on the currencies of emerging economies, including Mexico's, and higher medium and long-term interest rates due to the expected changes in U.S. monetary policy.

    "Mexico's sovereign risk, unlike other emerging economies, has remained stable after having increased in May and June, contributing to the strength of Mexico's macroeconomic fundamentals," the central bank said.
    Last month the central bank's governor, Agustin Carstens, said in Jackson Hole he thought the bank's monetary policy stance was adequate to reach the inflation goal as the peso was weakening and growth was slowing.
    In March the central bank cut its rate by a larger-than-expected 50 basis points but had stressed it was not embarking on a new cycle of easing. It has now cut rates by 75 basis points this year.
    Along with other emerging market currencies, Mexico's peso fell in May, but then bounced back in July before slipping in August. It was down almost 4 percent against the U.S. dollar since the start of this year, but rose after the rate cut, trading around 13.2 to the dollar

Mexico cuts rate 25 bps on slower growth and inflation - Central Bank News

for more details log on to Bank of Mexico website : http://www.banxico.org.mx/indexEn.html 

New Zealand Central Bank holds rate steady but adopts tightening bias

New Zealand's central bank maintained its official cash rate at 2.5 percent and repeated that it would hold the rate steady through the year, but warned that it would probably have to tighten policy in the future, depending on how much the housing market and construction sector fuels inflation pressures.
    The introduction of a tightening bias by The Reserve Bank of New Zealand (RBNZ) was not expected by economists, though the central bank has often voiced its concern over the strength of the housing market and the effect this may have on inflation.
    The RBNZ, which has held its its policy rate steady since March 2011, said inflation had been very low over the past year, helped by the strong New Zealand dollar and international and domestic competition, but it was now expected to trend upwards towards the midpoint of the bank's 1-3 percent target band as growth accelerates over the coming year.
    "The extent of the monetary policy response will depend largely on the degree to which the growing momentum in the housing market and construction sector spills over into inflation pressures," the bank's governor, Graeme Wheeler, said in a statement.
    "Although removal of monetary stimulus will likely be needed in the future, we expect to keep the OCR unchanged through the end of the year," he added.
    Since March the RBNZ has said it would keep its policy rate steady this year but this is the first time that it warned financial markets that it would have to tighten policy in the future.
   New Zealand's inflation rate eased to 0.7 percent in the second quarter from 0.9 percent in the first quarter, but Wheeler described the house price inflation in Auckland and Canterbury as "rapid," and repeated that the central bank did not want to see financial or price stability compromised by housing demand getting too far ahead of supply.
    Though New Zealand's economy slowed in the first quarter, due to the impact of drought on agriculture, the central bank said that growth was picking up, consumption was rising and reconstruction in Canterbury - following the 2011 Christchurch earthquake - would be reinforced by a broader national recovery in construction, particularly in Auckland.
    "This will support aggregate activity and eventually help to ease the housing shortage," Wheeler said.
    New Zealand's first quarter Gross Domestic Product rose by a quarterly 0.3 percent, down from 1.5 percent in the fourth quarter. Year-on-year, first quarter growth was 2.4 percent, down from 3.2 percent.
    The central bank repeated that the New Zealand dollar remained high, despite a decline on a trade-weighted basis since May, and continued to be a headwind for the tradables sector, restricting export earnings and encouraging demand for imports, while fiscal consolidation would also weigh on demand.

New Zealand holds rate steady but adopts tightening bias - Central Bank News

for more details log on to Reserve Bank of New Zealand website : http://www.rbnz.govt.nz/ 

Latvia Central bank cuts rate 50 bps on low inflation

Latvia's central bank cut is refinancing rate by 50 basis points to 2.0 percent, narrowing the large gap to the European Central Bank's (ECB) 0.50 percent refi rate, saying "inflation indicators are consistently low and the rate of economic growth poses no risks to price stability."
    Latvia will become the 18th nation to adopt the single currency on January 1, 2014.
    The Bank of Latvia, which last cut its rate in September 2012, also said it was lowering its forecast for inflation this year to 0.7 percent, from a previous forecast of 1.0 percent, while it was raising its forecast for economic growth, with Gross Domestic Product forecast to rise to 4.1 percent from a previous forecast of 3.6 percent.
    Latvia's GDP expanded by 1.4 percent in the first quarter from the fourth for annual growth of 3.6 percent, down from 5.1 percent in the fourth quarter.
    The inflation rate rose to 0.2 percent in June from deflation of 0.1 percent in May.
    In addition to cutting its refinancing rate, the Bank of Latvia also cut its marginal lending facility rates  with the size of the cut dependent on the length of time banks are using the facility.
    In its convergence report from June, the ECB said the high level of foreign deposits in Latvian banks posed "an important risk to financial stability." Most of the foreign deposits are believed to be from Russia and amount to about one-third of Latvia's GDP.

Latvia cuts rate 50 bps on low inflation, growth higher - Central Bank News

for more details log on to Bank of Latvia website : http://www.bank.lv/en/ 

Taiwan Central Bank holds rate

Taiwan's central bank held its key interest rates steady, including the benchmark discount rate at 1.875 percent, in light of global economic uncertainty, modest domestic economic recovery and reduced inflationary pressures.
    The Central Bank of the Republic of China (Taiwan), which has held the discount rate steady since June 2011, said it expected the rate decision to "help prices and overall economic stability" and the global economy was recovering at different speeds.
    The central bank added the global economic outlook was being affected by the turmoil in global financial markets from the U.S. preparing to exit quantitative easing, liquidity issues on the Chinese mainland "together with a large number of international short-term capital movement."
    The domestic economy contracted by 0.69 percent in the first quarter from the fourth, for annual growth of only 1.67 percent due to weak external demand and conservative private consumption with the comptroller head office forecasting growth of 2.40 percent this year, down from the bank's December forecast of 3.15 percent.
    Taiwan's inflation rate eased to 0.74 percent in May from 1.05 percent due to stable raw materials and weak consumption with the comptroller forecasting inflation of 1.14 percent in the second half of the year, down from 1.23 percent.

Taiwan holds rate, global outlook moved by market turmoil - Central Bank News

For more details log on to Central Bank of the Republic of China (Taiwan) website : http://www.cbc.gov.tw/mp2.html 

Namibia Central Bank holds rate

Namibia's central bank held its repo rate steady at 5.50 percent with inflation "at tolerable levels despite the recent Namibia dollar depreciation" and growth expected to remain below the target.
    The Bank of Namibia, which has held rates steady this year after a 50 basis point cut in 2012, headline inflation was steady at 6.1 percent in May from April while inflation excluding food an energy remained at 3.4 percent "thus suggesting an absence of underlying inflationary pressures."
    "Going forward, Namibia dollar depreciation against major currencies may present an inflation risk," the central bank cautioned.
    Like most emerging markets, Namibia's currency has fallen since early May and is down some 10 percent this year, quoted at 10.05 to the U.S. dollar today from 8.46 at the start of the year.
    A widening trade deficit may affect Namibia's international currency reserves and "warrants monitoring" but for now the central bank said international reserves remain adequate to protect the fixed currency arrangement and other international obligations.
    In April the central bank's governor, Ipumbu Shiimi, said interest rates would be held steady as long as inflation remains low and South African monetary authorities maintain their rates. Any significant difference in rates could result in capital fleeing Namibia to South Africa.
    The central bank said economic growth this year is expected to be driven by increased output in the mining, manufacturing and construction industries.  In April the central bank forecast growth this year of 4.4 percent, down from an estimated 5.0 percent in 2012.

Namibia holds rate, inflation tolerable despite FX fall - Central Bank News

for more details log on to Bank of Namibia website : https://www.bon.com.na/

New Zealand Central Bank News

New Zealand's central bank held its Official Cash Rate (OCR) steady at 2.5 percent, as widely expected, and repeated that it expects to keep the rate "unchanged through the end of the year."
    The Reserve Bank of New Zealand (RBNZ) also repeated that the New Zealand dollar remains overvalued despite having fallen over the past few weeks and continues to cause headwinds for the tradeables sector, restricting export earnings and encouraging demand for imports.
    In April the RBNZ, which has held its policy rate steady since March 2011, also said it expected to keep the OCR rate steady through this year and that the currency, known as the kiwi, was overvalued.
    The kiwi bottomed out in March 2009 against the U.S. dollar at $0.49 and has been rising steadily since then, hitting $0.83 at the beginning of this year. But since early May the kiwi has been falling from $0.85 to below $0.80 today. The RBNZ has confirmed it has intervened in markets.
    The RBNZ said economic growth was picking up but remained uneven with consumption rising and reconstruction in Canterbury gathering pace and this will be reinforced by a broader recovery in construction, helping support overall activity and eventually easing the housing shortage. Fiscal consolidation, however, will also constrain demand.
    "As previously noted, the Reserve Bank does not want to see financial or price stability comprimised by housing demand getting too far ahead of the supply response," the bank said, quoting its governor, Graeme Wheeler.

    The RBNZ said its expects annual Gross Domestic Product growth to accelerate to about 3.5 percent by the second half of 2014 and inflation to rise toward the midpoint of the bank's 1-3 percent target.
    New Zealand's inflation rate was stable at 0.9 percent in the first quarter, the same as in the fourth quarter and only marginally higher than 0.8 percent in the third quarter.
    New Zealand's Gross Domestic Product rose by 1.5 percent in the fourth quarter from the third quarter for annual growth of 2.5 percent, up from 2.0 percent in the third quarter

New Zealand holds rate, still sees same rate through 2013 - Central Bank News

for more details log on to Reserve Bank of New Zealand website :  http://www.rbnz.govt.nz/

Ukraine Central Banker's cut rate 50 bps to 7% to spur economic growth

Ukraine's central bank cut its benchmark discount rate by 50 basis points to 7.0 percent to boost lending and spur economic activity while inflation remains close to zero.
    The National Bank of Ukraine, which last cut its rate in March 2012, said the new rate would be effective from today, June 10, following a board meeting on June 6.
    Ukraine has suffered from deflation in the last 12 months with the headline inflation rate at minus 0.4 percent in May compared with minus 0.8 percent in April.
    In 2012 inflation averaged 0.6 percent. In 2013 and 2014 the central bank targets consumer price inflation in a range of 4.0 to 6.0 percent and between 3.-0 and 5.0 percent in 2015.

    "Seeking to reinforce already prevailing positive trends in the monetary sphere, the National Bank of Ukraine has taken this step, thus providing impetus to economic growth," the central bank said, adding the cost of funds has been on a downward trend while the banking sector has witnessed steady deposit growth with funds in national currency accounting for most of the growth.

    Ukraine's economy expanded by 0.6 percent in the first quarter from the fourth, reversing an 0.8 percent quarterly decline, for an annual contraction of 1.1 percent, less than the 2.5 percent annual fall in the fourth quarter and the 1.3 percent drop in the third quarter of 2012.
    In 2012 Ukraine's Gross Domestic Product grew by 0.2 percent and the International Monetary Fund estimates it will stagnate this year.

For more details log on to National Bank of Ukraine website : http://bank.gov.ua/control/en/

Ukraine cuts rate 50 bps to 7% to spur economic growth - Central Bank News

Serbia Central Bank cuts rate 25 bps ......

Serbia cuts rate 25 bps, future depends on government - Central Bank News

Serbia's central bank cut its policy rate by a further 25 basis points to 11.0 percent as it expects inflationary pressures to continue to ease in coming months but it cautioned that its future policy stance would depend on government measures to cut deficits and reform public finance.
    The National Bank of Serbia (NBS), which cut its rate by 50 basis points last month due to a drop in inflationary pressure, said May inflation data should confirm its view of declining inflation, with the annual inflation rate returning to the central bank's target range of 4.0 percent, plus/minus 1.5 percentage points, by October.
    In April, Serbia's inflation rate rose slightly to 11.4 percent from 11.2 percent. Last month the central banks said it expected inflation to return to its target range in the fourth quarter of this year.
    Most economists had expected the central bank to keep its rate steady in light of a depreciation in the dinar since mid-May.
    The NBS, which intervened last week to slow the fall in the dinar, said its executive board "attributed current developments in the foreign exchange market to trends in international financial markets and great investor risk aversion."
    Today the dinar traded around 114 to the euro, down 1.6 percent from the start of the year, but up from a spike to 118 late last month.

    The central bank said it expected the decline in inflation to be sustained by its recent policy measures, lower food prices in the new agricultural season and "additional fiscal consolidation measures that will eliminate uncertainty with regard to the future economic policy."
    Economists have attributed to pressure on the dinar to a report from the International Monetary Fund that said the government deficit would exceed 8 percent of Gross Domestic Product, more than double the 3.6 percent target, unless policies change.
    The IMF also said following its mission to Serbia that the central bank had limited room to ease policy until inflation slows and recommended that the government cut spending by at least two percentage points of GDP.
    Last month the central bank cut its 2013 growth forecast to 2.0 percent from a previous 2.5 percent.
    In the first quarter, the economy expanded by an annual 1.9 percent, sharply up from a contraction of 2.0 percent in the fourth quarter.
    Beginning in June 2012, the Serbian central bank raised rates eight times in a row in response to rising inflation - it high a 2012 high of 12.9 percent in October - but then paused in March and April this year before cutting in May.

www.CentralBankNews.info

For more details log on to National Bank of Serbia website :  http://www.nbs.rs/internet/english/

Uganda Central Bank cuts rate by 100 bps

Uganda cuts rate 100 bps as inflation outlook improves - Central Bank News

Uganda's central bank cut its central bank rate (CBR) by 100 basis points to 11.0 percent to stimulate domestic demand while the outlook for inflation improves and the forecast is cut.
    It is the Bank of Uganda's (BOU) first rate cut since December after cuts totaling 1,100 basis points in 2012.
    Uganda's headline inflation rate in May rose slightly to an annual rate of 3.6 percent from 3.4 percent in April but core inflation eased to 5.6 percent from 5.8 percent, "an indication that inflationary pressures have remained muted," the BoU said.
    The BoU now forecasts that core inflation will stabilise around the bank's 5.0 percent medium-term inflation target over the next 12 months, with the balance of risks now neutral. In April the BOU forecast core inflation of 1-2 percentage points above the target over the next few months before easing toward the target later this year.
    The change in forecast is mainly due to weaker-than-expected household consumption, which is likely to dampen demand side pressures on consumer prices, and a higher-than-expected appreciation of the the exchange rate, which dampens prices of imported consumer goods.

    Economic growth in the current 2012/13 fiscal year, which ends June 30, is now forecast to be higher than in 2011/12, driven by a recovery in demand for exports and investments.
    The BOU said that in 2013/14 it was unlikely that net export demand would continue to provide the primary source of growth so domestic demand will have to contribute more and household consumption will have to rebound. Investment is also expected to rise, driven by both the public and private sectors.
    Last month the BOU projected Gross Domestic Product growth of 5.3 percent in 2012/13 and 6-7 percent in 2013/14.
    Private sector credit demand remains constrained by high bank lending rates and structural factors and the BOU said strong credit growth will be important in boosting demand, saying its rate cut should "also be a signal for commercial banks to reduce their lending rates further in order to boost demand for bank credit."
    The BOU said it would maintain its band around the central bank rate at plus/minus 2 percentage points and the margin on the rediscount rate at 3 percentage points.
    In 2011 the BOU raised rates to a high of 23.0 percent in response to a rise in inflation to an all-time high of 30.5 percent in October 2011. Inflation then started to drop and hit a two-year low of 3.5 percent in February this year as the central bank slashed rates last year.

www.CentralBankNews.info

For more details connect with Bank of Uganda's website : http://www.bou.or.ug/bou/home.html 

Zambia Central Banker's raises rate by 25 bps

Zambia raises rate 25 bps on risks to 2013 inflation target - Central Bank News

Zambia's central bank raised its policy rate by 25 basis points to 9.5 percent, saying inflationary pressures "would be threat to the achievement of end-year inflation target of 6.0%."
    The Bank of Zambia, which raised rates by 25 basis points in 2012, said in April that it expected inflationary pressures to continue to moderate in the month of April.
    Inflation rose to 7.0 percent in April from 6.5 percent in March and the central bank said it was anticipating upward risks to inflation in June due to recent increases in the pump price of fuel coupled with the lagged effects of the recent exchange rate depreciation.
    These pressures will be moderated by the relative stable prices of food due to a positive food balance as indicated in recent crop forecast surveys, the bank said.
    Zambia's average inflation rate in 2012 was 6.6 percent, according to the International Monetary Fund, which forecasts a decline to 6.5 percent this year.

    www.CentralBankNews.info

for more information visit Bank of Zambia website : http://www.boz.zm/

Angola Central Bank News

Angola holds rate steady at 10%, inflation drops further - Central Bank News

Angola's central bank held its main policy rate steady at 10.0 percent as inflation continued to drop and the exchange rate remained stable.
    The National Bank of Angola (BNA), which cut its rate by 25 basis points in January, said the monthly inflation rate in April was 0.6 percent, down from 0.66 percent in March, for an annual rate of 9.0 percent, down from 9.1 percent.
    The BNA has for many years strived for an inflation rate below 10 percent and since August 2012 inflation has remained below that level.
    The central bank also said credit to the economy rose by 0.18 percent in April and the average interest rate on credit of 181 days in local currency rose to 12.53 percent for retailers and declined to 13.7 percent for the corporate sector.
    The average exchange rate for the kwanza against the U.S. dollar was 96.045 at the end of April compared with 95.98 at the end of March. During April the central bank sold US $1,980 million to the market for a total of $6,232 million in the first four months.
    In 2012 Angola's economy grew by 7.4 percent and the International Monetary Fund projects growth of 6.2 percent this year.

    www.CentralBankNews.info

National Bank of Angola weblink : http://www.bna.ao/