Reuters, Mar 19, 2015
Sweden’s central bank surprised markets on Wednesday by cutting interest rates further below zero and increasing its bond-buying stimulus program, reflecting its determination to prevent the crown’s recent rise from snuffing out a pick-up in inflation.
It was the Riksbank’s second decisive move in a month, but startled markets because it came between scheduled policy meetings.
The central bank is one of 24 monetary authorities around the world to have eased policy this year.
Below is a chronological list of central bank actions taken to counter the global deflationary pressures stemming largely from collapsing oil prices, or to boost flagging growth:
Jan. 1 UZBEKISTAN
Uzbekistan’s central bank cuts its refinancing rate to 9 percent from 10 percent.
Jan. 7/Feb. 4 ROMANIA
Romania’s central bank cuts its key interest rate by a total of 50 basis points, taking it to a record low of 2.25 percent. Most analysts polled by Reuters had expected the cut.
Jan. 15 SWITZERLAND
The Swiss National Bank stuns markets by scrapping its three-year-old on the franc’s value against the euro, leading to a surge in the currency. The de facto tightening, however, is in part offset by a cut in the interest rate on certain sight deposit account balances of 0.5 percentage points, to -0.75 percent.
Jan. 15/March 4 INDIA
The Reserve Bank of India unexpectedly lowers its policy rate for the second time this year, backing the 10-month-old government of Prime Minister Narendra Modi in its push to revive economic growth as inflation cools.[ID:nL4N0W61KW]
Jan. 15 EGYPT
Egypt’s central bank makes a surprise 50-basis-point cut in its main interest rates, reducing the overnight deposit and lending rates to 8.75 and 9.75 percent, respectively.
Jan. 16 PERU
Peru’s central bank unexpectedly cuts its benchmark interest rate to 3.25 percent from 3.5 percent after the country posts its worst monthly economic expansion since 2009.
Jan. 20 TURKEY
Turkey’s central bank lowers its main interest rate, but draws heavy criticism from government ministers, who say the 50- basis-point cut, five months before a parliamentary election, is not enough to support growth.
Jan. 21 CANADA
The Bank of Canada cuts interest rates to 0.75 percent from 1 percent, where they had been since September 2010, ending the longest period of unchanged rates in Canada since 1950.
Jan. 22 EUROPEAN CENTRAL BANK
The ECB launches a government bond-buying program which will pump over 1 trillion euros into the sagging euro zone economy, starting in March and running to September next year and perhaps beyond.
Jan. 24 PAKISTAN
Pakistan’s central bank cuts its key discount rate to 8.5 percent from 9.5 percent, citing lower inflationary pressure because of falling global oil prices. Central Bank Governor Ashraf Wathra says the new rate will be in place for two months, until the next central bank meeting to discuss further policy.
Jan. 28 SINGAPORE
The Monetary Authority of Singapore unexpectedly eases policy, saying in an unscheduled policy statement that it will reduce the slope of its policy band for the Singapore dollar because the inflation outlook has “shifted significantly” since its last review in October 2014.
Jan. 28 ALBANIA
Albania’s central bank cuts its benchmark interest rate to a record low 2 percent. This follows three rate cuts last year, the most recent in November.
Jan. 30/March 13 RUSSIA
Russia’s central bank cuts its one-week minimum auction repo rate by 100 basis points to 14 percent, less than two months after cutting it by two points to 15 percent, as fears of recession mount following the fall in global oil prices and Western sanctions over the Ukraine crisis.
Feb. 3 AUSTRALIA
The Reserve Bank of Australia cuts its cash rate to an all-time low of 2.25 percent, seeking to spur a sluggish economy while keeping downward pressure on the local dollar.
Feb. 4/28 CHINA
China’s central bank cuts interest rates for the second time in one month to fight off economic slowdown and rising deflation risks. Following a system-wide cut to bank reserve requirements in early February, policy makers followed up with a cut in benchmark interest and saving rates at the end of the month.
Jan. 19/22/29/Feb. 5 DENMARK
The Danish central bank cuts interest rates four times in less than three weeks and intervenes regularly in the currency market to keep the crown within the narrow range of its peg to the euro.
Feb. 13/March 18 SWEDEN
Sweden’s central bank cuts the key repo rate 0.15 percentage points to -0.25 percent and says it will buy 30 billion Swedish crowns ($3.40 billion) of government bonds after already completing 10 billion crowns of purchases.
Feb. 17 INDONESIA
Indonesia’s central bank cuts its benchmark interest rate by a quarter of a percentage point to 7.5 percent, the first rate cut in three years, surprising all 20 economists in a Reuters poll, who had expected no change.
Feb. 18 BOTSWANA
Botswana’s central bank cuts its benchmark lending rate by 100 basis points to 6.5 percent, saying the state of the economy and inflation outlook provided scope for easing monetary policy.
Feb. 23 ISRAEL
The Bank of Israel lowers its benchmark interest rate to 0.1 percent from 0.25 percent, its first reduction in six months, amid persistent deflation and a strengthening shekel.
March 4 POLAND
Poland’s central bank cuts interest rates by 50 basis points — a bigger-than-expected reduction that brings rates to an all-time low of 1.50 percent, to curb deflation and prevent excessive gains of its currency.
March 11 THAILAND
Thailand’s central bank cuts its benchmark interest rate by 25 basis points to 1.75 percent in a bid to spark the stubbornly sluggish economy. The cut was the first rate change in a year and expected by only five of 21 analysts in a Reuters poll.
March 12 SOUTH KOREA
South Korea’s central bank cuts interest rates for the first time in five months in a surprise move, lowering its base rate by 25 basis points to a record low of 1.75 percent. It is the second surprise cut from an Asian central bank in 24 hours, following Thailand’s move the day before.
March 12 SERBIA
Serbia’s central bank cuts its benchmark interest rate for the first time since November to 7.5 percent from 8 percent, as expected, in a move to ward off deflation and support economic growth after a new IMF loan deal.