Daily Archives: January 6, 2010

The board of Nigeria’s central bank voted unanimously on Tuesday to keep the monetary policy rate at 6 per cent and the key lending rate at 8 per cent, though it reduced the borrowing rate from 4 to 2 per cent. Inflation poses a “serious threat in the months ahead,” said governor Lamido Sanusi. The all-item CPI rose to 12.4 per cent year-on-year in November from 11.6 and 10.4 per cent in the two previous months.

The board also chose to extend the guarantee on bank transfers to December 31, 2010. The Nigerian banking industry is still in serious trouble. Read more

Indonesia’s central bank today decided to hold the Bank Indonesia (BI) rate at 6.5 per cent, saying the level was consistent with the 2010 inflation target of 5% ± 1%. Inflation in 2009 was recorded at 2.78 per cent, well below the target of 4.5% ± 1%. The Board sees little likelihood of renewed inflationary pressure in the first half of 2010.

The monetary policy operational target is reflected in movement in the interbank overnight rate. It is expected that bank deposit rates will track the movement in interbank rates, with bank lending rates following suit.