Central Bank Watch
Central Bank of Brazil Cuts Selic Rate by 100 Basis Points
January 21, 2009
The Brazilian central bank rate was lowered to 12.75% from a cyclical high of 13.75%. The drop was twice as much as expected and yet another example of front-loaded monetary stimulus. The easing was made in response to an export-led softening of economic growth, steep declines in the stock market, deterioration in the labor market, […] More
Currency Markets in the News
Bank of Japan Preview And Japanese Lessons for Other Governments
January 21, 2009
A rate cut by the Bank of Japan on Thursday would be a huge surprise, since the benchmark overnight money target and Lombard rate are at at 0.1% and 0.3%, leaving no cushion short of a restoration of zero rates and adoption of quantitative easing. These are options that BoJ officials continue to resist. There […] More
Central Bank Watch
Monetary Policy Eased Sharply in Malaysia
January 21, 2009
After cutting its benchmark rate by a much larger-than-forecast 75 basis points to 2.50% and the reserve ratio by 150 basis points to 2.0%, Bank Negara Malaysia released a statement, citing the downward impact of global recession on exports, investment and inflation. This was Malaysia’s second easing and three times greater than the first one […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Overseas Share Prices Bleed Further
January 21, 2009
Stocks fell in Asia by 3.5% in India, 3.1% in the Philippines, 2.9% in Hong Kong, 2.3% in South Korea, 2.0% in Japan and 1.7% in Indonesia. Australia’s bourse fell by 1.0%. In Europe, the British Ftse, Paris Cac and German Dax are trading lower by 1.3%, 1.4%, and 0.6%. The dollar lost 0.7% against […] More
