News about central bank

Motilal Oswal analyst Manav Modi says gold is seeing a range-bound bias, having fallen sharply from a September high of around Rs 163,000–165,000 and now consolidating near Rs 148,000. Immediate support is at Rs 147,500, then Rs 146,000–145,500, while resistance sits at Rs 148,800–149,000 and then Rs 150,000–150,500. Gold trades near $4,175 with a resilient tone, supported by ETF inflows of around 187 tonnes in August and September, Chinese demand, and central-bank buying estimated at 250–300 tonnes in Q3, though elevated real yields remain the main near-term headwind. Investors are watching the upcoming Fed meeting and PCE inflation data, as cautious comments from Fed Chair Kevin Warsh have cut expectations for an October hike below 20%.

Taiwan's central bank said it would step in to stabilize the foreign exchange market if the Taiwan dollar stays volatile after its sharp fall against the U.S. dollar last week. The currency fell NT$0.463 to close at NT$32.338 on Friday, its steepest weekly decline in more than a year. The Taiex dropped 2,202.18 points, or 4.47%, to 47,111.26, dragged down by large-cap tech stocks amid concerns about U.S. inflation, a more hawkish Federal Reserve and high valuations of AI stocks. Foreign investors net sold US$19.40 billion in local shares and pulled US$17.96 billion from Taiwan during the week, while the central bank noted the Taiex fell 5.4% versus a 15.7% drop in the Philadelphia Semiconductor Index and said the currency remained stable over the longer term.

Taiwan's central bank said it will step in to stabilize the foreign exchange market if the Taiwan dollar stays volatile after its sharp losses against the U.S. dollar last week. The currency fell NT$0.463 to close at NT$32.338 on Friday, its steepest weekly drop in more than a year. The Taiex fell 4.47% to 47,111.26 points, dragged by large-cap tech stocks amid concerns over U.S. inflation fueled by high oil prices and AI stock valuations. Foreign investors net sold US$19.40 billion in local shares and pulled US$17.96 billion out of Taiwan during the week. The bank said the currency remains stable over the longer term and will keep monitoring markets, intervening when necessary.

The Nikkei 225 opened October 19 at 404.78, down 2.1% from the previous close of 413.41 in the first minutes of Tokyo trading. The drop comes as the Bank of Japan has already signaled it cannot tolerate underlying inflation running above 2%, leaving limited room for policy to cushion a selloff. Yen-sensitive exporters, which are among the most widely held Japanese stocks by international funds, are expected to feel the impact first. The article notes that the Tokyo open can set the tone for the broader Asia session.

Columnist Tope Fasoranti argues that the Central Bank of Nigeria's (CBN) 350-basis-point cut in the Monetary Policy Rate, from 26.5% to 23% on September 22, 2026, was a decisive and well-timed call. The standing deposit facility rate fell by 200 basis points to 20%, and the overnight rate closed the week to September 25 at 20.77% according to Cordros Research, so the rest of the cut mainly realigns the official signal with prevailing market rates. Real rates remain higher than a year ago: with headline inflation at 15.39%, the 23% MPR implies a real rate of about 7.6 points, versus about 4.4 points in August 2025. Applying the Taylor rule gives an illustrative range of roughly 17% to 24%, with the new rate toward the cautious end, as core inflation has moderated for three consecutive months from 16.82% in May to 13.29% in August.

The Dutch central bank (DNB) moved more than 78 tons of gold from New York and seven tons from Canada to London, citing rising geopolitical unrest and the need to improve crisis preparedness. This is part of a wider trend: the New York Fed, which custodies gold for the U.S. government and foreign institutions, now holds about half its early-1970s peak, and France removed all its gold from New York between July 2025 and January 2026. Earlier moves included Germany's transfers of 930 tons in 2000 and 674 tons in 2013–2017, Venezuela's 160 tons in 2011–2012, and India's accelerated relocations since 2023. According to World Gold Council analyst Krishan Gopaul, central banks now weigh custody risk, physical accessibility and market liquidity, and recent moves show the answer does not necessarily lie in domestic storage alone.

Net placements by Nigerian banks at the Central Bank of Nigeria’s (CBN) Standing Deposit Facility (SDF) rose above 6 trillion naira for three consecutive days after the CBN repaid 2.41 trillion naira in maturing Open Market Operations (OMO) securities on October 13. Net SDF placements increased from about 3.86 trillion naira on October 13 to 6.08 trillion naira on October 16, a rise of 2.22 trillion naira or 57.65%. Treasury bill sales absorbed only 269.06 billion naira, and about 74% of bids were unallotted. The article suggests banks are holding surplus liquidity rather than deploying it, but notes that high SDF placements alone do not prove deliberate credit restriction, since borrower demand, risk, capital requirements and interest rates also shape lending.

The House prosecution panel expects the Ombudsman to file criminal cases against Vice President Sara Duterte and officials of her office and DepEd over alleged misuse of confidential funds, after the agency began evaluating evidence. The defense has not formally notified the impeachment court whether Duterte will testify when the trial resumes on Nov. 9. The Chinese Embassy dared lawmakers to act quickly on their threat to declare Ambassador Jing Quan persona non grata, saying it is tired of repeated warnings. As 2026 Asean chair, the Philippines will host the 20th AMMTC from Oct. 19 to 21, while nine economists polled expect the BSP to raise its key rate by 25 basis points to 5.25 percent at its Oct. 22 meeting. In sports, Alex Eala opens her Ningbo Open campaign against France’s Diane Parry.

The Bangko Sentral ng Pilipinas (BSP) posted net income of P170.2 billion in the first seven months of 2026, up 114.9 percent from the same period last year, according to preliminary, unaudited statements. That already exceeded its P124.6-billion earnings for all of 2025 by 36.6 percent. Most of the rise came from net foreign exchange gains, which nearly tripled to P102 billion and made up about 60 percent of net income. Total expenses fell 18.8 percent to P98.6 billion, mainly because interest expenses dropped 42.4 percent, while revenues edged up 1.9 percent to P166.8 billion, with interest income making up about 90 percent.

Saudi Central Bank (SAMA) Governor Ayman bin Mohammed Al-Sayari said the Saudi economy remains resilient amid ongoing Middle East conflict, supported by sound policy frameworks, substantial financial reserves and rapid, coordinated institutional response capacity. He said the banking system has strong capital and liquidity levels, backed by proactive prudential policies. Speaking to the International Monetary and Financial Committee at the IMF and World Bank annual meetings in Thailand, he noted that the global economy has shown better-than-expected resilience, though geopolitical conflicts, high uncertainty and debt, and limited policy room persist, and medium-term growth remains weak. He stressed price stability, rebuilding fiscal buffers, maintaining effective investment and targeting support to the neediest households, and welcomed the one-year extension of Saudi Arabia’s chairmanship of the committee. He also highlighted Vision 2030’s role in diversifying the non-oil economy, expanding private-sector participation and developing human capital and infrastructure.

SBI Funds Management says the Reserve Bank of India (RBI) may need to raise its repo rate to at least 6.25% to contain inflation risks, after the RBI lifted it by 25 basis points to 5.50% earlier this month. That level would imply another 75 basis points of increases, though the report gives no timeline. Retail inflation rose to 5.54% in September from 4.83% in August, while wholesale inflation climbed to 11.39% from 9.92%. The fund house says headline CPI remains about 120 basis points above the 4% target, and warns that high crude prices, possible food inflation and strong domestic demand could push inflation above the RBI's 6% upper tolerance limit for two consecutive quarters. It also notes that surplus banking liquidity could weaken the effect of rate hikes, and that rate cuts are off the table.

In its October 2026 Market Outlook, SBI Funds Management says the RBI may need to lift its repo rate to at least 6.25% to contain inflation risks, after raising it by 25 basis points to 5.50% earlier this month. That implies another 75 basis points of hikes with no timeline given, and the fund sees the near-term path as either a hike or a hold, with rate cuts off the table. Retail inflation rose to 5.54% in September from 4.83% in August and wholesale inflation to 11.39% from 9.92%, while the FY27 CPI forecast of 5.20% sits about 120 basis points above the 4% target. The RBI projects inflation at 6% in the third quarter and 5.7% in the fourth quarter of FY27, and the fund warns that elevated crude prices, food inflation and strong domestic demand could push it above the 6% upper tolerance limit for two consecutive quarters. It also cautions that surplus banking liquidity could weaken the effect of rate hikes, and the RBI's next Monetary Policy Committee meeting is scheduled for December 2-4.

The Federal Reserve is the central bank of the United States, created by Congress in 1913 after a series of banking panics. Its dual mandate is maximum employment and stable prices, with stable prices defined since 2012 as 2% annual inflation measured by the PCE index. The Federal Open Market Committee, with twelve voting members, meets eight times a year to set the federal funds rate, its main tool; raising rates slows borrowing and inflation but risks recession, while cutting rates supports jobs but may lift inflation. During the 2008 crisis and the 2020 pandemic, the Fed bought Treasury and mortgage-backed securities to push down long-term rates, and it also serves as lender of last resort, bank supervisor and operator of payment systems such as FedNow, launched in 2023. It does not set tax or spending policy and cannot target individual prices like gas or groceries.

The Reserve Bank of New Zealand – Te Pūtea Matua (RBNZ) has signed a Memorandum of Understanding with public and private sector organisations. The agreement aims to support access to basic transaction services across New Zealand.