Global Central Bank Monitor
Recent monetary policy moves
This story was originally published at 15:54 IST on 23 May 2025
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MUMBAI – Following is a summary of decisions by key central banks in the week ended Friday:
THE RESERVE BANK OF AUSTRALIA (May 20)
The Reserve Bank of Australia cut its policy rate by 25 basis points to 3.85% Tuesday as inflation in the country eased. RBA Governor Michele Bullock acknowledged the rising uncertainties in the global outlook, but said the downward inflation trajectory has given the central bank some room to lower interest rates. "Inflation has fallen substantially since the peak in 2022, as higher interest rates have been working to bring aggregate demand and supply closer towards balance. Data on inflation for the March quarter provided further evidence that inflation continues to ease," the RBA said.
THE PEOPLE'S BANK OF CHINA (May 20)
China's central bank lowered the one-year prime and five-year loan prime rates by 10 basis points each to 3.0% and 3.5%, respectively. The decision to lower rates came on the back of looming uncertainties because of US President Donald Trump's imposing slew of tariffs on Chinese imports to the US. Governor Pan Gongsheng cited uncertainties in the global economy, economic fragmentation and trade tensions as some of the reasons for the rate cut.
BANK INDONESIA (May 21)
The Indonesian central bank cut the benchmark 7-day reverse repurchase rate by 25 basis points to 5.50% Wednesday. The decision was based on the central bank's focus on supporting growth. "This decision is consistent with the forecast of low and manageable inflation in 2025 and 2026 within the target to maintain the stability of the (Indonesian) rupiah in accordance with its fundamentals, and to contribute to economic growth," Bank Indonesia Governor Perry Warjiyo said.
BANK (rate) | POLICY RATE | MOVE AT LAST MEET | PREVIOUS MOVE ON RATES |
Reserve Bank of Australia (Cash rate) | 3.85% | (-)25 bps (May 20) | -- (Apr. 1) |
Banco Central do Brasil (Selic rate) | 14.75% | +50 bps (May 7) | +100 bps (Mar. 19) |
Bank of Canada (Overnight rate) | 2.75% | -- (Apr. 16) | (-)25 bps (Mar. 12) |
The People's Bank of China (Benchmark 1-year lending rate) | 3.00% | (-)10 bps(May 20) | -- (Apr. 21) |
Bank of England (Bank rate) | 4.25% | (-)25 bps (May 8) | -- (Mar.20) |
European Central Bank (Deposit rate) | 2.25% | (-)25 bps (Apr. 17) | (-)25 bps (Mar. 6) |
Reserve Bank of India (Repo rate) | 6.00% | (-)25 bps (Apr. 9) | (-)25 bps (Feb. 7) |
Bank Indonesia (BI 7-day reverse repo rate) | 5.50% | (-)25 bps (May 21) | -- (Apr. 23) |
Bank of Japan (Overnight call rate) | 0.50% | -- (May 1) | -- (Mar. 19) |
Bank Negara Malaysia (Overnight Policy Rate) | 3.00% | –- (May 8) | –- (Mar. 6) |
Banco de Mexico (Overnight interbank funding rate) | 8.50% | (-)50 bps (May 15) | (-)50 bps (Mar. 27) |
Central Bank of Russia (Key rate) | 21.00% | -- (Apr. 25) | --(Mar. 21) |
Saudi Arabian Monetary Authority (Repo rate) | 5.00% | (-)25 bps (Dec. 18) | (-)25 bps (Nov. 7) |
South African Reserve Bank (Repo rate) | 7.50% | -- (Mar. 20) | (-)25 bps (Jan. 30) |
Bank of Korea (Base rate) | 2.75% | -- (Apr. 17) | (-)25 bps (Feb. 25) |
Swiss National Bank (Sight deposits rate) | 0.25% | (-)25 bps (Mar. 20) | (-)50 bps (Dec. 12) |
TCMB (Turkey) (1-week repo) | 46.00% | +350 bps (Apr. 17) | --(Mar. 20) |
US Federal Reserve (Federal funds rate) | 4.25-4.50% | -- (May 7) | -- (Mar. 19) |
End
Compiled by Vidhushi RajPurohit and Vaishali Tyagi
Filed by Saji George Titus
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