By Karin Strohecker and Ritvik Carvalho
LONDON, July 2 (Reuters) - Emerging market central banks
accelerated interest rate cuts in June, with policymakers
rushing to trim benchmarks as major central banks including the
U.S. Federal Reserve and the European Central Bank adopted a
more dovish tone.
Interest rate moves by central banks across a group of 37
developing economies showed a net five rate cuts last month --
the largest number since September 2017. In May, developing
market central banks recorded a net two rate cuts.
The fifth month of net rate cuts follows a tightening cycle
that ended in early 2019. Then, interest rate hikes by emerging
market central banks outstripped or matched cuts for nine
straight months as they battled the fallout from a strong
dollar, rising inflation and softer currencies.
For an interactive version of the above graphic, click here
https://tmsnrt.rs/2VtMl5w.
Below is a list of recent emerging market central bank
monetary policy changes:
DOMINICAN REPUBLIC - Policymakers cut interest rates by 50
basis points to 5% on June 30. https:// RICA - The central bank cut the key policy rate to
4.50% from 4.75% from June 20. https:// MOZAMBIQUE - The central bank cut its benchmark interest
rate by 100 basis points on June 19. - The central bank raised its key rate to 7% on June
19. - The central bank cut its key interest rate on June
14 and flagged that one or two more cuts were possible later
this year as Russia faces sluggish economic growth and slowing
inflation. - Chile's central bank unexpectedly cut the benchmark
interest rate by 50 basis points to 2.5% on June 7 as it braced
for a sharper economic slowdown because of the U.S.-China trade
dispute. - Azerbaijan's central bank on June 7 cut its
refinancing rate to 8.50% from 8.75% citing stable inflation
expectations. - The Reserve Bank of India cut its policy interest
rate by 25 basis points in a widely expected move on June 6,
while also changing its policy stance to "accommodative," after
latest data showed the economy growing at its slowest in over
four years. LANKA - The central bank cut its key interest rates by
50 basis points on May 31, as widely expected, to support its
faltering economy as overall business and consumer confidence
slumped following last month's deadly bomb attacks. - The central bank reduced the refinancing rate
to 13.25% from 14.75% on May 31. - Policy makers in the Central Asian nation cut
the benchmark rate to 4.25% from 4.50% on May 28, citing slowing
inflation. - Angola's central bank cut its benchmark lending
rate by 25 basis points to 15.5% on May 24. - The central bank in Lusaka raised the benchmark
lending rate to 10.25% from 9.75% on May 22 to counter
inflationary pressure and support macroeconomic stability.
- Soaring inflation prompted Pakistan's central
bank to raise its key interest rate to 12.25% on May 20 with
policy makers flagging further rises on the back of higher oil
prices and reforms required for a bailout from the International
Monetary Fund. - Jamaica's central bank cut its interest rate by 50
basis points to 0.75% on May 19 - the third cut since the start
of the year. https:// PHILIPPINES - The central bank cut its benchmark
interest rate on May 9 by 25 basis points to 4.50%, on
expectations inflation will ease after the economy grew at its
slowest pace in four years in the first quarter. - The central bank on May 7 became the first in
Southeast Asia to cut its key interest rate this year, by 25
basis points to 3.0%, moving to support its economy at a time of
concern about global growth. - Rwanda's central bank cut its key repo rate by 50
basis points on May 6 to 5.0%. - Malawi's central bank cut its benchmark lending
rate by 100 basis points on May 3 to 3.5%. REPUBLIC - The Czech National Bank raised interest
rates on May 2, using a window of opportunity created by easing
economic risks abroad to stem rising domestic inflation by
fine-tuning a tightening cycle it had paused at the end of 2018.
- Ukraine's central bank trimmed its main interest
rate to 17.5% on April 25, the first decrease in the past two
years. - Policymakers cut the policy rate by 25 basis
points to 9.00% on April 15 in an expected move taken after
President Kassym-Jomart Tokayev ordered them to make credit more
affordable. - In a surprise move, the central bank cut its
benchmark interest rate to 13.5% from 14% on March 26 as part of
an attempt to stimulate growth in Africa's biggest economy and
signal a "new direction". - Paraguay's central bank cut its policy rate by 25
basis points to 4.75% on March 22.
GEORGIA - The central bank cut its refinancing rate to 6.5%
from 6.75% on March 13, citing forecasts suggesting that annual
inflation would stay close to its 3% target this year.
- Policymakers in Tunisia raised the key interest
rate to 7.75% from 6.75% on Feb. 19 to combat high inflation -
the third such hike in the past 12 months.
EGYPT - Egypt's central bank made a surprise cut to its
overnight deposit rate on Feb. 14, citing a strong drop in
inflation and an improvement in other macroeconomic indicators.
The bank lowered its deposit rate to 15.75% from 16.75 and its
lending rate to 16.75% from 17.75%, its first rate cuts since
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Shifting gears interactive https://tmsnrt.rs/2VtMl5w
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