Central Bank Watch
Danish Central Bank Also Eased More Today Than the ECB
January 15, 2009
The Danish Central Bank cut its key lending rate by 75 basis points to 3.0%, 25 basis points more than the ECB rate cut. The Danes had eased twice in December, matching the ECB’s 75 basis point reduction on December 4th and doing another unilateral 50 basis points on on December 19th. Denmark does not […] More
Central Bank Watch
Turkey Cut Rates by 200 Basis Points
January 15, 2009
The Central Bank of Turkey reduced its benchmark lending and borrowing rates today by 200 basis points to 15.5% and 13.0%. A cut of only 75-100 bps had been anticipated. These rates peaked in July at 20.25% and 16.75%. The lending rate was cut subsequently by 50 bps in October. Both rates were reduced by […] More
Geithner Appointment Hits a Snag
January 15, 2009
Tim Geithner’s appointment as Treasury Secretary is jeopardized by his failure to pay self-employment taxes on time in the past. A comment posted today to my initial assessment of the Geithner choice by a reader showing knowledge on such tax matters makes a compelling case for rejecting President-Elect Obama’s first choice because it does not […] More
Currency Markets in the News
ECB Press Conference: Several Messages Sent
January 15, 2009
ECB President Trichet implied in Q & A that rates would not be lowered again at the February meeting, which is only three weeks away. Today’s cut of 50 basis points took account of a likely further growth slowdown at the turn of 2008 and 2009 as well as associated diminished risks to inflation. The […] More
Central Bank Watch
ECB Cuts Refinancing Rate to 2.0% From 2.5%
January 15, 2009
A 50-basis point cut in the European Central Bank’s main policy rate was consistent with the market consensus and returns the rate level to its record low of 2.0%, which was also the rate for 7 months in 1999. Today’s announcement follows cuts of 50 basis points each in October and November and 75 basis […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Yet Another Plunge in Asian Stocks
January 15, 2009
Stocks fell 4.9% in Japan, 6.0% in South Korea, 3.4% in Singapore and Hong Kong, 4.4% in Taiwan, 4.5% in Pakistan, and 4.3% in Australia. By contrast, European bourses are steady, as investors await the ECB decision at 12:45 GMT, which is expected to involve a 50-basis point rate cut to 2.0%. The New Zealand […] More
