central bank latest publications
Today’s wait and watch policy meeting suggests that the ECB will stay put in the short to medium-run regarding monetary policy, awaiting better clarity on the evolution of the pandemic, the recovery and financial conditions, while continuing to use the PEPP with high flexibility, preserving favourable financing conditions.
The decision might not mark the end of the rate cut cycle if with falling inflation Banxico resumes it in 2021. Banxico reasons for pausing not clear in the statement.
We continue to think that Banxico will move in 25bp steps from here until the policy rate reaches 3.0% (in May 2021). We continue to expect that Banxico will slash rates further than currently expected, as Banxico keeps them close to 0% in real terms.
In this publication you will find, on a weekly basis, our selection of the most relevant news regarding financial regulation.
The Board of the Central Bank decided to maintain the monetary policy rate at 0,25% in October. The Bank renewed its commitment to maintain a strongly expansive stance for a prolonged period and slightly modified its inflation outlook.
May 8, 2020
Peru | The Central Bank will keep a highly expansive policy stance for a prolonged period
The Board of the Central Bank decided to maintain the monetary policy rate at 0,25% in May. The accompanying statement included a “forward guidance” component, with the Bank committing to the current monetary policy stance as long as the negative effects of COVID-19 persist.
Today’s ECB statement saw very minor changes in the key paragraphs related to monetary policy. The ECB confirmed the risks surrounding the outlook are less pronounced.
The Central Bank of Turkey (CBRT) decreased the policy rate by 200 bps to 12% from 14%, slightly higher than market expectation of 150 bps. Global Central Banks Dovishness remain supportive but we think that complacency should be ruled out and the CBRT should be ready to act in any direction if the situation change.