Central banks speed up policy tightening week 5, 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
ARGENTINA
Jan 6: benchmark 28-day Leliq rate raised 200 bps to 40.0% as part of a redesign of monetary policy instruments to meet the 2022 goal of setting interest rates that result in a positive real return on investments in pesos, and preserve monetary and exchange rate stability.
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
Feb 1: further purchases under the bond purchase program to be ended, with the final purchases to take place on Feb. 10. Ceasing bond purchases does not imply a near-term increase in interest rates and while inflation has picked up, it is too early to conclude it is sustainably within the target band
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
Jan. 4: reference rate raised 50 bps to 2.25% to reduce inflation to its target, with extent of monetary tightening needed to reach goal to depend on new information about inflation, economic growth and the labour market.
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.
Source: http://www.centralbanknews.info/2022/02/central-banks-speed-up-policy.html
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