The South African Reserve Bank [SARB] held its monetary policy interest rate, the repo rate, unchanged at 5.50%. The Bank said: "The MPC remains of the view that inflation pressures are primarily of a cost-push nature, but is concerned that a persistent upward trend in inflation and prolonged breach of the inflation target could have an adverse effect on inflation expectations which could reinforce the upward inflation dynamics. However, the MPC is also cognisant of the slowing domestic economy and feels that given the lack of demand pressures, monetary tightening at this stage would not be appropriate. At the same time, the nominal policy rate is at a long term low and the real policy rate is slightly negative, indicating a monetary policy stance that is accommodative and supportive of the real economy."
Previously the SARB also held the repo rate unchanged at its November meeting last year, the Bank last cut the repo rate by 50bps to 5.50% in November 2010. South Africa reported annual inflation of 6.1% in December, compared to 5.7% in September, 5.3% in August and July, 5% in June, 4.6% in May, and 4.2% in April this year, compared to its official inflation target range of 3-6%.
south african reserve bank, south africa, monetary policy, economics, macroeconomics, finance, central banks, economy of south africa, interest rates, inflation targeting, inflation, official bank rate, south african rand
Latvijas Banka kept its main monetary policy interest rate, the refinancing rate, steady at 3.50%, and held its other interest rates unchanged, but reduced the reserve ratio for bank liabilities above two years to 2% from 3%, and for other liabilities to 4% from 5%. The Bank said: "By reducing the reserve ratio, additional financial resources are released for lending and more beneficial conditions for the availability of lending resources necessary for economic growth are created. A simultaneous reduction of the reserve requirement for liabilities of different maturities will promote a balanced impact on the availability of financing in the banking sector and will continue to maintain banks' motivation in attracting long-term financing."
Previously the Bank also kept monetary policy settings unchanged, leaving the refinancing rate at 3.50% at its November meeting. The Bank of Latvia last reduced the refinancing rate by 50bps to 3.50% in March 2010. Latvia reported annual inflation of 4% in December, down from 4.4% in October, 4.6% in September, and 4.7% in August. The Latvian economy expanded 5.6% on an annual basis in Q2, while GDP growth was reported as 3.5% in the previous quarter. The Latvian currency, the lat (LVL), last traded around 0.54 against the US dollar.
latvijas banka, latvia central bank, bank of latvia, latvia central bank holds, latvia, bank liabilities, finance, economics, monetary policy, financial ratios, banking, economy of latvia, national bank of latvia, central bank, reserve requirement, inflation, bank, www.centralbanknews.info
I attended an interesting lecture last night from an economic legend: Professor Amartya Sen of Harvard University.read more...
taiwan, germany, japan, united states, brazil, china, sweden, greece, india, america, asia, europe, africa, latin america, george bernard shaw, jeremy bentham, chris gibson-smith, amartya sen, bernard shaw, adam smith, occupy wall street, g8, trinity college, g20, world bank, harvard university, international monetary fund, all souls college, tea party, harvard society of fellows, european union, fuller solution, unrestricted search, public services, insurance system, finance, adequate solution, healthcare, food, cambridge, oxford, starvation, london stock exchange group, economics, capitalism, economic liberalism, academia, philosophy, economic ideologies, economic systems, social philosophy, poverty, criticism of capitalism, economic growth, economist, london stock exchange group plc, chairman, professor, businessmen, model of economic management, professor of economics and philosophy, major, currently professor of economics and philosophy
Things we're reading today include ...read more...
hester, david cameron, bank of america, bbc, paypal, bank accounting rules, bank sharesbbc, usd, vienna, primary dealers, european central bank, frankfurt, american international group, eurozone, euro, credit suisse, tailthe economist, paypal pte. ltd., british broadcasting corporation, bank of america corporation, chief executive