As expected, the European Central Bank strengthened its forward guidance regarding interest rates at its July 22 Governing Council Decision. The decision was the first after their announcement of a more dovish monetary policy strategy on July 8. The Governing Council now “expects” to keep interest rates at current or lower levels until two criteria […]
The People’s Bank of China (PBoC) reduced the reserve requirement ratio (“RRR”) for Chinese commercial banks by 0.5 percentage point on July 9; the RRR cut allows commercial banks to turn more of their customers’ deposits into loans rather than holding them at the central bank as reserves. The PBoC estimates that the RRR cut
The Bank of Mexico (Banxico) surprised with a 0.25 percentage point hike in their policy interbank rate at the June 24 Monetary Policy Committee meeting, raising the rate to 4.25%; no economists surveyed by Bloomberg prior to the decision had expected a hike. Banxico’s announcement cited the jump in U.S. CPI inflation to the highest
