Thursday, August 5, 2010

Global Central Bank Interest Rate Activities

It's monetary policy on hold, across most of the globe.

Today, the Bank of England announced they would not be making any changes in interest rate policy. The European Central Bank said the same, as did the Czech central bank.

Only Serbia's central bank announced that they would be raising rates. At the major global player level, although there was no announcement yeterday, China's central bank appears to be the only CB that is changing policy, bu adopting a policy of a somewhat slower money growth (but still highly inflationary level). Slower monetary growth, but still inflationary growth, makes the perfect condition for stagflation. It's not going to be pretty in China.

No comments:

Post a Comment