Monetary policy: Week in review (Jan 7, 2011)
The article below comes courtesy of Central Bank News, an authoritative source on monetary policy developments.
The past week in central banking and monetary policy was relatively quiet, with just five central banks announcing interest rate decisions. Those changing interest rate settings were: Romania -25bps to 5.75%, Bangladesh +50bps to 7.75%, and Cape Verde +150bps to 5.75%. Those that held rates unchanged were Uganda at 23.00%, and Trinidad & Tobago at 3.00%. Also making news was the signing into law of sanctions against Iran’s central bank by the US, Chinese leaders commenting on the direction of monetary policy in 2012, and the ECB appointing Belgian, Peter Praet, as Chief Economist; replacing the outgoing Jurgen Stark.
Following are some of the key quotes from the central bankers that announced decisions last week:
Looking at the central bank calendar, there’s a few key central bank meetings scheduled in the week ahead. The market will be closely watching the decisions from the Bank of England and ECB; while neither are expected to change policy settings just yet, the statement from the ECB will merit close study. Also due in the week ahead is China’s quarterly data dump, many are picking the PBOC will cut the RRR before Chinese Lunar New Year (23 Jan), and the data may (or may not) provide an additional excuse to move. The Fed is also scheduled to release its Beige Book economic report on Wednesday.
Source: Central Bank News, January 6, 2011.
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