South Africa Leaves Interest Rates at 8.25%, Rand Falls Rallies with Delayed Rate Cuts

The South African Reserve Bank (SARB) kept its benchmark repo interest rate at 8.25% at its January 25th, 2024, meting as widely anticipated. Rates remain at their highest since 2009. The bank highlighted the persistence of inflation risks while emphasizing a balanced evaluation of risks to medium-term growth. The SARB noted that the return of inflation to the target has been slow, despite the expected gradual moderation. Headline inflation fell for a second month to 5.1% in December from 5.5% … Continue reading “South Africa Leaves Interest Rates at 8.25%, Rand Falls Rallies with Delayed Rate Cuts”

Bank Indonesia Keeps Rates Unchanged at Highest Level Since 2009 to Support Rupiah

Bank Indonesia kept its benchmark interest rate unchanged at 6.00% as universally expected at its December meeting. Governor Warjiyo said, “we will not rush” to ease next year and that they may only have comfort in addressing risks to the stability of the rupiah by “the second half of 2024.” There was little overall effect on the currency or rates. He added the decision was “consistent with the focus of pro-stability monetary policy, to strengthen the stability of the rupiah … Continue reading “Bank Indonesia Keeps Rates Unchanged at Highest Level Since 2009 to Support Rupiah”

Philippines Central Bank Surprised Raising Rates to 6.50% in Emergency Meeting, Warns of Future Hikes

The Monetary Board of the Bangko Sentral ng Pilipinas (BSP), Philippines central bank raised its benchmark interest rate by 25 basis points and hinted at further hikes to contain surging inflation following an emergency meeting on Thursday, lifting the key rate to 6.5%. The move came after inflation accelerated to 6.1% year-on-year in September as food prices rose. It is the highest since the 7.50 percent logged in May 2007. Since it started raising interest rates in May last year, … Continue reading “Philippines Central Bank Surprised Raising Rates to 6.50% in Emergency Meeting, Warns of Future Hikes”

Philippines Central Bank Held Rates at 6.25% with Stable Peso and Downward Inflation Trend

The Monetary Board of the Bangko Sentral ng Pilipinas (BSP), Philippines central bank held rates at 6.25%. Rates at their August meeting, the highest since the 7.50 percent logged in May 2007. Since it started raising interest rates in May last year, the BSP has so far increased key policy rates by 425 basis points (bps), making it the most aggressive central bank in the region. BSP Governor Eli Remolona Jr. said “monetary authorities are ready to respond as necessary … Continue reading “Philippines Central Bank Held Rates at 6.25% with Stable Peso and Downward Inflation Trend”

South Africa Leaves Interest Rates at 8.25% in Split Vote, Rand Falls

The South African Reserve Bank (SARB) kept its benchmark repo interest rate at 8.25% at its July 2023 meeting as markets had expected. The decision was split three members of the bank’s monetary policy committee voted for the pause, two advocated for a further increase of 0.25 percentage points. “Have interest rates peaked? The answer is a resounding no,” said Kganyago at a press conference. “Is this the end of the hiking cycle? No, it is not. It depends on … Continue reading “South Africa Leaves Interest Rates at 8.25% in Split Vote, Rand Falls”

Philippines Central Bank Held Rates at 6.25%, Highest Since May 2007 as Inflation Moderates

The Monetary Board of the Bangko Sentral ng Pilipinas (BSP), Philippines central bank held rates at 6.25%. Rates are now the highest since the 7.50 percent logged in May 2007. Since it started raising interest rates in May last year, the BSP has so far increased key policy rates by 425 basis points (bps), making it the most aggressive central bank in the region. Governor Felipe Medalla said “I would like to see two months of below 4% inflation before … Continue reading “Philippines Central Bank Held Rates at 6.25%, Highest Since May 2007 as Inflation Moderates”

Bank Indonesia Keeps Rates Unchanged at Highest Level Since 2009 With Weaker Rupiah

Bank Indonesia kept its benchmark interest rate unchanged at 5.75% as universally expected at it’s April meeting. Guidance emphasized the need to avoid imported inflation and stability risks around a weaker rupiah which leaned against possible nearer-term easing given past indications to strengthen the rupiah exchange rate. BI said the decision came on the back of a stronger currency and easing price pressures. The benchmark 7-day reverse repurchase rate now stands at 5.75%, the deposit facility at 5.00% and the lending … Continue reading “Bank Indonesia Keeps Rates Unchanged at Highest Level Since 2009 With Weaker Rupiah”

South Africa Raises Interest Rates 50bps, Rand Falls to All Time Low

The South African Reserve Bank (SARB) increased its benchmark repo interest rate by another 50 bps to 7.25% at its May 2023 meeting. Markets had expected a smaller 25 bps increase. Policymakers cited concerns regarding the significant depreciation of the rand and the mounting pressures of inflation as key drivers behind the rate adjustment. The SARB also revised its inflation forecasts, with inflation for 2023 now projected to average 6.2%, up from the previous estimate of 6.0%. The move triggered … Continue reading “South Africa Raises Interest Rates 50bps, Rand Falls to All Time Low”

Bank Indonesia Keeps Rates Unchanged at Highest Level Since 2009 With Rupiah Stable

Bank Indonesia kept its benchmark interest rate unchanged for a third straight month at it’s April meeting. The pause came after six consecutive hikes to tame inflation and strengthen the rupiah exchange rate. BI said the decision came on the back of a stronger currency and easing price pressures. The benchmark 7-day reverse repurchase rate now stands at 5.75%, the deposit facility at 5.00% and the lending facility at 6.50%, their highest level since 2009 and in line with market forecasts. … Continue reading “Bank Indonesia Keeps Rates Unchanged at Highest Level Since 2009 With Rupiah Stable”

South Africa Raises Interest Rates 50bps, Revises Inflation Higher

The South African Reserve Bank (SARB) increased its benchmark repo interest rate by another 50 bps to 7.75% at its March 2023 meeting. Markets had expected a smaller 25 bps increase. The move triggered a surge in the rand , which extended earlier gains to rise nearly 2% against the dollar. It was the 9th consecutive rate hike since policy normalization started in November 2021, bringing borrowing costs to the highest since May 2009. Policymakers revised significantly upward headline inflation … Continue reading “South Africa Raises Interest Rates 50bps, Revises Inflation Higher”