To combat inflation, the Reserve Bank of India has set the repo rate at 5 per cent, and reverse repo rate at 3.5 per cent.
India’s central bank on Friday announced a surprise 25-basis point increase in its key policy rates – the first rise in nearly two years – in a bid to head off inflation that is poised to cross into double digits, writes Joe Leahy in Mumbai. Read more
By Jude Webber, Chile correspondent
So much is uncertain for Chile these days as it begins resurrecting itself after the February 27 earthquake estimated to have caused $30bn of damage. No one knows how sharply the economy will contract, or for how long, or how much inflation will spike in the short term. So the central bank’s announcement on March 18 that it is keeping its key interest rate at a rock-bottom 0.5 per cent until the second half of the year gives markets some certainty at least.
Here’s what the bank had to say:
The Board considers that, in the present circumstances-marked especially by the uncertainty associated with the effects of the catastrophe-, holding the monetary policy interest rate at its minimum level of 0.50% at least until the second quarter of 2010 is consistent with projected annual inflation standing at 3% over the policy horizon.
The central bank has proved itself to be both bold and flexible in recent months. Read more
Rumours and anecdotal evidence of a shift in Swiss currency policy have been backed up by the comments of a Swiss National Board member. Read more
The FT is reporting today that Alistair Darling will announce public sector net borrowing of about £170bn for 2009-10 in the Budget next week, about £5bn to £10bn better than his previous forecast from December. As I said yesterday, this still means borrowing is terrible – about 12 per cent of national income, not 12.5 per cent.
If you compare the FT’s report this morning with City and independent commentators yesterday, you would notice the FT is not as bullish as the City. Read more