Central Banks

Google Ad

ECB left rates unchanged as expected in June. The bank left deposit facility interest rates at -.50% and held steady rates on the main refinancing operations and on the marginal lending facility unchanged. PEPP purchases over the current quarter to continue to be significantly higher. Reaffirms size of PEPP program at €1.85 trillion.

The Bank of Canada left the key lending rate at 0.25 percent on Wednesday as expected. BoC repeated it will hold interest rate at the effective lower bound until economic slack is absorbed. Bank of Canada kept bond purchases to C$3 billion a week with its projection for full recovery to second half of 2022.

The Reserve Bank of Australia held interest rates at an all time low in May to just 0.1% as widely expected. In the RBA minutes released Tuesday the central bank repeated policy to remain very easy for some time and remains committed to maintaining highly supportive monetary conditions until its goals are achieved.

The Swiss National Bank announced they are to test a transfer of central bank digital currency funds. "We will try some cross-border functionality." "There will be another central bank and another currency other than the Swiss franc. " said Thomas Moser of the SNB's governing board. The test follows the researxh paper "How to Issue a Central Bank Digital Currency"

The Federal Reserve kept rates unchanged at their April meeting, kept QE infinity open with TALF for open-ended Treasuries, MBS and corporate bonds in amounts needed. Fed will continue to buy paper at current pace of $120B/month of Treasuries and MBS combined. Compare that to $40B/month in QE3.

The Bank of Japan announced no change to monetary policy as widely expected. The BOJ short-term interest target kept at -0.1% and the 10 year JGB yield target remains around 0%. The ETF buy cap stays at 12tln yen. The bank expects core consumer inflation to hit 0.1% in the current fiscal year.

ECB left rates unchanged as expected in April. The bank left deposit facility interest rates at -.50% and held steady rates on the main refinancing operations and on the marginal lending facility unchanged. PEPP purchases over the current quarter to continue to be significantly higher. Reaffirms size of PEPP program at €1.85 trillion.

The Bank of Canada left the key lending rate at 0.25 percent on Wednesday as expected. BoC repeated it will hold interest rate at the effective lower bound until economic slack is absorbed. Bank of Canada reduces bond purchases to C$3 billion a week, moves forward its projection for full recovery to second half of 2022.

Fed Chairman Powell comments came across the wires with an unannounced response to Senator Rick Scott (Fla R) that too low inflation harms families and business. On low treasury yields he said they attested to strong global demand for safe liquid assets.

South Korea's Monetary Policy Board of the Bank of Korea decided today to leave the Base Rate unchanged at 0.50% for the intermeeting period as expected. GDP growth this year is projected to be above the February forecast of 3.0%.

Google ads