{"id":22240,"date":"2011-07-09T00:07:00","date_gmt":"2011-07-09T04:07:00","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?guid=0d71984dd2e005f029b7aee694649d6b"},"modified":"2011-07-09T00:07:00","modified_gmt":"2011-07-09T04:07:00","slug":"monetary-policy-week-in-review-9-july-2011","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/07\/09\/monetary-policy-week-in-review-9-july-2011\/","title":{"rendered":"Monetary Policy Week in Review – 9 July 2011"},"content":{"rendered":"

The past week in monetary policy saw interest rate decisions from 14 central banks around the world, of which 7 made changes in their monetary policy settings.  Those that increased interest rates were: Sweden +25bps to 2.00%, China<\/a> +25bps to 6.56%, the EU +25bps to 1.50%, and Denmark +25bps to 1.55%. While those that cut rates included Vietnam, which cut its OMO rate -100bps to 14.00%, and Ghana -50bps to 12.50%.  Those that held rates unchanged were: Australia 4.75%, Poland 4.50%, Malaysia 3.00%, the UK 0.50%, Sri Lanka 7.00%, Rwanda 6.00%, and Mexico 4.50%.  Also, setting monetary policy interest rates for the first time was the Bank of Uganda, which set its new monetary policy rate, the central bank rate, at 13.00%.<\/span>
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One of the themes that stood out was additional monetary policy tightening, or more appropriately – monetary policy normalization, from developed market central banks e.g. Sweden, the ECB, and Denmark.  Meanwhile the actions of Vietnam and Ghana show that it’s not a one-way street for emerging markets.  However the inflation-growth mix still remains a challenge for some key emerging markets, as made clear with China’s additional interest rate hike.  But while some noted upside risks to inflation, many banks are seeing inflation tracking within their target ranges.
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Indeed listed below are some of the key quotes from central banks that met over the past week, particularly around their assessment of the domestic inflation outlook:<\/span><\/p>\n