New Overnight Developments Abroad - Daily Update

Little Growth and Even Less Inflation

October 23, 2014

As on Wednesday, data released today have accentuated subdued growth and disinflation. The kiwi fell 1% against the U.S. dollar, which otherwise shows no change against the loonie, Australian dollar or yuan, downticks of 0.2% relative to the euro and Swiss franc, and rises of 0.3% vis-a-vis the yen and 0.2% against sterling. Share prices […] Read Article

Foreign Exchange Insights and Next Week

Financial Trick or Treat

October 22, 2014

The ‘Trick or Treat’ greeting of Halloween revelers offers a choice of extremes.  The handover of a holiday sweet is a happy moment for giver and receiver alike, while the contrary exchange of an act of vandalism for getting no candy leaves all parties dissatisfied.  There’s no middle ground, and so it has been for […] Read Article

Central Bank Watch

Turkish Central Bank Defies Government Pressure to Cut Interest Rates Further

October 23, 2014

Turkey’s Monetary Policy Committee kept its one-week repo (8.25%), overnight lending rate (11.25%) and overnight borrowing rate (7.5%) unchanged for a second straight monthly meeting, releasing a statement that affirmed again that “the tight monetary policy stance will be maintained, by keeping a flat yield curve, until there is a significant improvement in the inflation […] Read Article

Deeper Analysis

Who’s Easing Monetary Policy; Who’s Been Tightening

October 16, 2014

Central banks cut interest rates during the first half of October in South Korea and Poland.  Rates were cut in September in Romania, Sri Lanka, Chile, Peru, and Euroland, where the ECB Governing Council also  introduced several unconventional measures to loosen policy.  Between May and August, rates were cut in Sweden, Turkey, Hungary, Thailand, Israel, Serbia […] Read Article

Central Bank Watch

Bangko Sentral ng Pilipinas: No Further Tightening in the Philippines for Now

October 23, 2014

In a statement released after the latest Filipino central bank policy meeting, the decision not to raise interest rates was justified by a somewhat better inflation outlook. Latest forecasts show a lower inflation path for 2014-2016, reflecting easing pressures on commodity prices. Inflation expectations have also remained broadly stable and aligned to the inflation target.  […] More

Central Bank Watch

Norwegian Monetary Policy Remains on Pause

October 23, 2014

The interest rate cuts by the Executive Board of Norges Bank of 50 basis points in December 2011 and 25 bps in March 2012 returned the benchmark to 1.5%, its lowest level since October-November of 2009 and just 25 basis points above the Great Recession low earlier in 2009.  No changes have been made at […] More

Central Bank Watch

Bank of Canada Keeps Four-Year-Old Policy Settings But Shares New Kernels of Wisdom

October 22, 2014

The monetary policy interest rate target has been at 1.0% since a 25-basis point hike in September 2010.  Following a quarterly review, that level is still considered appropriate, according to a statement released today.  The statement and accompanying Monetary Policy Report convey numerous insights into the latest thinking of Canada’s monetary policymakers. Canada’s output gap […] More

New Overnight Developments Abroad - Daily Update

Focus on Lessening Inflation

October 22, 2014

The latest monthly economic assessment from Japan’s government downgraded its view on consumer prices from “rising moderately” to “rising at a slower tempo recently.”  The overall view of the economy also was downgraded to “is on a moderate recovery, while weakness can be seen recently.” Australian third-quarter consumer price data revealed the smallest quarter-on-quarter rise […] More

New Overnight Developments Abroad - Daily Update

Data to Digest

October 21, 2014

Data released earlier today include Chinese GDP, retail sales, industrial production and business investment, revised Euroland deficit- and debt-GDP ratios, and Japan’s all-industry index.   U.S. existing home sales and weekly chain store sales figures are awaited.  Markets are also getting some corporate earnings reports, which have exceeded expectations.  The dollar is unchanged overnight against the […] More

New Overnight Developments Abroad - Daily Update

Fresh Drop in European Equities

October 20, 2014

European share prices are selling off again following Friday’s interrupted downtrend.  The German Dax, British Ftse and Paris Cac are down 1.1%, 0.9%, and 0.8% so far.  Investors remain worried about the outlook for European growth and fear the ECB Governing Council will not do enough to forestall another slide into recession and possible deflation. […] More

Foreign Exchange Insights and Next Week

Next Week

October 17, 2014

Central Bank interest rate meetings are scheduled next week in Canada, Norway, the Philippines and Turkey.  Central Banks in the U.K. and Australia release minutes of their meeting earlier this month, and the Bank of Canada publishes a quarterly Monetary Policy Report. U.S. existing and new home sales data will be released, along with consumer […] More

Central Bank Watch

Another Chilean Interest Rate Cut

October 17, 2014

Officials at the Central Bank of Chile announced late Thursday the eighth interest rate cut in a year.  The key rate was reduced previously in October and November of 2013 and February, March, July, August, and September of this year.  All these cuts have been by 25 basis points, and the benchmark is now 3.0% […] More

New Overnight Developments Abroad - Daily Update

Dovish Rhetoric

October 17, 2014

Markets have a better tone. aided by some dovish remarks from Fed’s Bullard (maybe QE3 shouldn’t end now), Coerce (ECB to start buying assets very soon), Nowotny (euro depreciation constructive), Haldane (British data point to later rate hike rather than sooner), and Kuroda (BOJ easing to continue until 2% inflation secured).  The 10-year Treasury futures […] More

Central Bank Watch

Unchanged Serbian Monetary Policy Rate

October 16, 2014

The Executive Board of the National Bank of Serbia left monetary policy on pause.  The benchmark interests rate had been cut by 225 basis points over the final two-thirds of 2013 but by a further 50 basis points each in May and June of this year to 8.5%.  But a released statement after this month’s […] More

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