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A Surprisingly Busy Thursday for International Financial Markets
April 8, 2009
In light of the Passover and Easter holiday breaks, one would expect a dearth of data and other news for markets to absorb. It will not be so. Besides the aforementioned Bank of England policy announcement, the Bank of Korea also makes a rate announcement, and Indonesia holds parliamentary elections tomorrow. Industrial production data will […] More
Central Bank Watch
Bank of England Preview: No Policy Changes Expected
April 8, 2009
The Bank of England’s 2-day meeting in April will end with an announcement at 11:00 GMT on Thursday. Six cuts from October to March, including reductions of 50 basis points in each month of the first quarter of 2009, have reduced the British Bank Rate to 0.5% from 5.0%. At 0.5%, the rate to be […] More
Currency Markets in the News
Export-Led Slumps in Germany and Japan
April 8, 2009
Japanese merchandise exports recorded year-over-year declines of 46.3% in January, 50.4% in February, and 47.1% in the first twenty days of March. In fact most of those losses occurred over the past six months. A monthly 4.9% drop in seasonally adjusted exports in February was the smallest decline since September and left the export level […] More
Central Bank Watch
Central Bank of Iceland Cuts Policy Rate to 15.5% from 17%
April 8, 2009
Despite a 9% drop of the Icelandic krona since the central bank implemented an initial 100-basis point rate cut on March 19th, today’s reduction of 150 bps continues the policy of cautiously dismantling a draconian policy stance mandated last October by the IMF. Price stability is the long-term goal of monetary policy, but currency stability […] More
Central Bank Watch
Bank of Thailand Eases 25 Basis Points
April 8, 2009
The Thai one-day repo rate was cut to 1.25% from 1.5%. Most analysts had expected a cut of that magnitude, although a significant minority was looking for a 50-bp reduction. This was the fourth cut since December and continues a progression toward smaller-sized moves after drops of 100 bps in December, 75 bps in January, […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Stocks Much Lower
April 8, 2009
Stocks fell by 2.7% in Japan, 3.0% in Hong Kong, 3.8% in China, 2.9% in South Korea, 3.9% in Pakistan, 2.7% in Vietnam and 2.3% in Australia. The German Dax, Paris Cac, and British Ftse are down 0.9%, 1.1% and 0.9%, and another U.S. equity price drop is indicated at the open. Latest impetus for […] More
