Monetary policy latest publications
The Central Bank of Turkey kept the policy rate at 19% in line with the expectations. Given the worsened inflation expectations, the CBRT repeated the need to decisively keep the current “tight” monetary policy stance. Thus we expect an easing cycle only very gradually in late 3Q and end the year with 16% policy rate.
June will be a key month for discovering how the two main central banks—the Federal Reserve (Fed) and the European Central Bank (ECB)—plan to begin to reverse the unprecedented expansionary policies launched at the start of the COVID-19 crisis.
Digital money has been around for some time: the deposits we hold in banks, and in turn the reserves banks hold in central banks, consist of money that for decades has been registered and operated digitally. However, some concern has now arisen about the so-called "digital currencies".
The tables have recently turned for the common European currency as it once again moves toward appreciation. Following the period of weakness it experienced earlier this year, the euro has appreciated by over 3.5% so far this quarter, exceeding 1.22. This appreciation occurred earlier than expected.
May 14, 2021
Peru | Central Bank will maintain strongly 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 Bank renewed its commitment to maintain a strongly expansive stance for a prolonged period and reaffirmed its message of absence of inflationary pressures.
As expected, Banxico acknowledged high inflation and rising risks, but at the same time noted that is still expecting inflation to converge to 3.0%, now in 2Q22.
The global economy keeps recovering in spite of the uncertain epidemiological context. World GDP growth should be 5.9% in 2021. The worsening health situation slows down economic activity in Uruguay, which will grow less than expected in 2021.
The closing data published by the INE last month confirmed that the Spanish economy experienced a contraction in 2020 like no other experienced in peacetime, with a drop of 10.8%. But this review paints a somewhat different picture, showing that there has been a differential effect for the different autonomous communities.