Heteronomics Archive

April 08, 2024

Philippines Policy Rate 6.5% (consensus 6.5%) in Apr-24

The BSP’s decision to maintain the policy rate at 6.5% reflects a strategic response to a modest uptick in inflation forecasts and the challenge of balancing inflation mitigation with economic growth, indicating a cautious yet proactive approach to monetary policy management.
Despite the upside risks to inflation, particularly from supply-side pressures, the Monetary Board’s confidence in keeping inflation expectations anchored assumes the effectiveness of the current policy stance in maintaining inflationary stability.
The BSP’s emphasis on economic growth prospects and its readiness to adapt policy settings in response to shifting economic and inflationary landscapes highlight a commitment to flexible and forward-looking monetary policy, ensuring price stability and sustained economic health.

April 02, 2024

The Central Bank of Chile reduced its MPR by 75 basis points to 6.5%, aligning with consensus expectations amid downward global inflation trends, yet noting risks from transportation and fuel costs.
Domestically, the economy shows mixed signals with better-than-expected activity but subdued demand and investment, alongside an economy reflecting global financial market trends with adjustments in interest rates and currency depreciation.
The Board anticipates further reductions in the MPR, considering the macroeconomic scenario and inflation trajectory, emphasizing the need for a flexible policy approach in response to transient inflationary pressures and external economic risks.

March 21, 2024

The SNB's unexpected rate cut to 1.5% reflects a strategic shift, influenced by sustained below-target inflation and the effectiveness of previous monetary tightening, underscoring the bank's commitment to price stability and economic support.
Future policy decisions will hinge on inflation dynamics, global economic conditions, and domestic economic health. The SNB is poised to adjust its stance in response to evolving economic indicators and inflation forecasts.
The SNB's approach balances supporting economic growth and ensuring price stability, indicating a readiness to adapt policy measures in the face of heightened economic uncertainties and shifting global dynamics.

March 21, 2024

Banco de México reduced the overnight interbank interest rate by 25 basis points to 11.00%, aligning with economic consensus, responding to decreasing inflationary pressures and the prospect of increased global economic activity.
Annual headline inflation has decreased to 4.4% and core inflation to 4.64% amid economic dynamism and a strong labour market. The central bank is trying to foster growth while managing inflation expectations.
The Governing Board will continue to assess economic and inflationary developments. It will maintain a restrictive policy stance in a cautious yet adaptable approach to ensure the orderly convergence of inflation to the 3% target.