Central Bank Watch
Danish Central Bank Matched ECB Rate Cut of 50 Basis Points
November 6, 2008
Denmark opted out of the common European currency but participates in ERM2, whereby domestic credit policy is subordinated to the goal of having the krone shadow the euro. Normally, the Dansmarks NationalBank adjusts its benchmark lending rate in tandem with the ECB and in fact matched all eight ECB rate hikes of 25 basis points […] More
Central Bank Watch
ECB Reduces Its Key Rates by 50 Basis Points
November 6, 2008
The ECB had been projected to cut rates by 50 basis points and did so. But the move was only a third as forceful as the Bank of England’s and in that context appears to timid. A 75-basis point cut was also considered and should have been chosen instead. Governing Council members were unanimous in […] More
Central Bank Watch
The Swiss National Bank Cuts Rate Target Midpoint by 50 Basis Points to 2.0%
November 6, 2008
Swiss monetary officials acted outside of a scheduled quarterly meeting for the second time in a month. The new LIBOR target range becomes 1.5-2.5%, with a point target of 2.0%. The Swiss on October 8th had implemented a 25-bp reduction, moving less than other central banks in that concerted move. The cyclical peak rate of […] More
Central Bank Watch
Bank of England Slashes Key Rate to 3.0% from 4.5%
November 6, 2008
The Bank of of England implemented its biggest rate change by far since the period surrounding the run on sterling in September 1992. No move since February 1993 had exceeded 50 basis points, but officials today cut their Bank Rate by 150 basis points to 3.0%. It seems that William Buiter, a former member of […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Stocks Tumble as Investors Await BOE and ECB
November 6, 2008
Speculated likely interest rate cuts by the Bank of England at 12:00 GMT and ECB at 12:45 GMT has moved higher. One former Bank of England policymaker, Buiter, said the situation demands a rate reduction of 150 basis points. Stocks tumbled in Asia and Europe. Nikkei -6.5%. Hang Seng -7.1%. Indonesia -4.3%. India -3.7%. German […] More
