Latest news with #monetary policy
Reuters
a day ago
- Business
- Reuters
Ghana central bank notes economic recovery but takes no action at emergency MPC
ACCRA, July 18 (Reuters) - Ghana's central bank said on Friday that an emergency meeting of its Monetary Policy Committee on Thursday had considered whether to take immediate action but held off until a regular meeting later this month. The bank noted in a statement that a broad range of macroeconomic indicators had improved as the West African country emerges from its most severe economic crisis in decades. "Inflation expectations are broadly anchored, external buffers have strengthened, and confidence in the economy is returning," the bank's statement said. "The Committee reaffirmed its commitment to support the recovery process without compromising the gains achieved so far." The regular MPC meeting will take place from July 28 to 30, with a policy decision announced at its conclusion. Ghana's economic growth accelerated in the first quarter and inflation (GHCPIY=ECI), opens new tab dropped to its lowest level since December 2021 in June. The bank's statement noted the disinflation, the first-quarter growth rate, a good performance by the external sector, rising international reserves and a stronger local currency. The cedi is up more than 40% against the dollar so far this year. The central bank also said the global economic environment remained uncertain, with weakening global growth momentum and tight financing conditions.
Bloomberg
2 days ago
- Business
- Bloomberg
Ghana Delays Rate Announcement After Calling Emergency Meeting
Investors look to a central bank for predictability in unpredictable times, but that's not what they just got from the Bank of Ghana. It unexpectedly advanced a gathering of the monetary policy committee and declared it would hold an emergency meeting on Thursday — with an announcement of the outcome on Friday — and then changed its mind.
Russia Today
2 days ago
- Business
- Russia Today
Russian inflation cooling down
Monthly inflation in Russia slowed sharply in June, the strongest sign to date that the central bank's extended cycle of tight monetary policy is beginning to curb price pressures, Bloomberg reported on Thursday. In response to Western sanctions imposed on Russia since the escalation of the Ukraine conflict three years ago, the Bank of Russia raised its key rate several times, from 9.5% to a high of 21% to stabilize the ruble and contain inflation. Last month, the regulator cut its key interest rate by 100 basis points to 20%, citing a slowdown in inflation. It marked the first rate reduction since 2022 when the central bank adopted a tight monetary policy to stabilize the economy amid a wave of annual inflation remains elevated at 9%, well above the central bank's 4% target, monthly price growth has slowed to a pace consistent with that goal, according to Bank of Russia data released on Thursday. This marks the 'first meaningful sign that the central bank's battle against inflation may be turning a corner after a protracted period of ultra-tight monetary policy,' the outlet said. To gauge current inflation trends, the central bank monitors a seasonally adjusted annual rate (SAAR) of monthly price growth. If the current trajectory holds, analysts expect inflation to return to target sometime next year. That is likely to fuel expectations of earlier and potentially deeper key rate cuts than previously anticipated, Bloomberg noted. Inflation expectations, another key factor in rate decisions, held steady at 13% in July for a second straight month, according to Bank of Russia. Deputy Governor Aleksey Zabotkin said last month that estimates aligned with low inflation should be closer to 8%, highlighting a gap the bank continues to monitor as it weighs further so, the recent slowdown in price growth suggests the central bank could shift toward a more dovish stance – meaning it could prioritize economic growth over inflation control by cutting interest rates. Zabotkin said rate setters could consider cutting borrowing costs by more than 100 basis points at next week's meeting.
Reuters
2 days ago
- Business
- Reuters
China expected to keep lending rates steady, focus turns to Politburo meet
SHANGHAI, July 18 (Reuters) - China is widely expected to leave its benchmark lending rates unchanged at a monthly fixing on Monday, a Reuters survey showed, as signs of economic resilience reduced the urgency for further monetary easing. The loan prime rate (LPR), normally charged to banks' best clients, is calculated each month after 20 designated commercial banks submit proposed rates to the People's Bank of China (PBOC). In a Reuters survey of 20 market watchers conducted this week, all respondents expected both the one-year and five-year LPRs to remain steady. Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages. The consensus of no immediate monetary easing comes as data this week showed China's second-quarter gross domestic product (GDP) growth nudged slightly above market expectations, even though weak domestic demand and uncertainty around U.S. tariffs have raised economic risks. "Although continued downward price pressures and sluggish loan demand present a solid case for further easing, the PBOC may opt to hold off until a more opportune window," said Lynn Song, chief China economist for Greater China at ING. "We continue to expect one more 10-basis-point rate cut and 50-basis-point reserve requirement ratio (RRR) cut before year-end." For now, market attention would be squarely on the Politburo meeting later this month, which is likely to shape economic policy for the rest of the year, traders and analysts said. "With H1 real GDP growth still solid, we do not think policymakers see the immediate need to launch broad-based, significant stimulus in the near-term, including at the July Politburo meeting," analysts at Goldman Sachs said in a note. "Instead, we expect incremental, targeted easing to help stem the property downturn and mitigate labour market pressures in H2." China's new home prices declined at the fastest pace in eight months in June from the previous month, official data showed on Tuesday, underscoring the challenges policymakers face in reviving demand even after multiple rounds of support measures.
Bloomberg
4 days ago
- Business
- Bloomberg
Thai Central Bank Contender Touts Need to Work With Government
A contender to be Bank of Thailand's next governor said she'd be 'a little more aggressive' in articulating the path for interest rates, calling for closer coordination of monetary and fiscal policies. 'As we have very limited resources, every bullet that we use would have to be more effective,' Deputy Governor Roong Mallikamas said in an interview in Bangkok on Tuesday. 'That probably could be done only if we were in collaboration and our policies are directed in the same direction in a cohesive manner and better coordinated.'
