Archive for April 9th, 2009

Central Bank Watch

Central Reserve Bank of Peru Cuts Reference Rate By Full Percentage Point

April 9, 2009

Peru’s key central bank interest rate was reduced to 5.0% from 6.0%, a much bigger drop than those of 25 basis points each in March and February. The monetary authorities released a statement citing the deceleration of CPI inflation to 4.8% in March from 6.7% at end-2008 and predicting a return to in-target inflation by […] More

Central Bank Watch

Central Bank of Nigeria Slashes Monetary Policy Rate

April 9, 2009

Nigeria’s benchmark central bank rate was cut by 175 basis points to 8.0%.  Monetary officials also reduced the liquidity ration to 25% from 30% and the cash reserve requirement to 1% from 2%.  This was the second easing of policy.  Last September 18th, officials cut their interest rate by 50 bps from 10.25% where such […] More

Central Bank Watch

Bank of Korea Keeps Key Rate at 2.0%

April 9, 2009

As expected, the Bank of Korea left credit policy unchanged for a second consecutive month and left no hint that it is poised to cut rates further soon. The central bank’s website talks of downside growth risks, declining inflation, and lower house prices but also observes some signs of improved conditions related to the won […] More

U.S. and Canadian Trade Figures

April 9, 2009

The U.S. goods and services trade deficit contracted 48.6% in January-February from a year earlier to $31.1 billion per month.  In February alone, the deficit was just $26.0 billion, 58% smaller than in February 2008.  Whereas net exports have been the major drivers of the German and Japanese recession, such continued to be a significant […] More

Canadian March Labor Report Broadly Poor

April 9, 2009

Canada lost more jobs (61.3K) in March than consensus expectations, and the jobless rate climbed another three-tenths to  a 7-year high of 8.0%, above forecasts of 7.9%.  There are 7.9 times more workers in the United States than in Canada. If one adjusts the Canadian figures to be on the same scale as the U.S. […] More

Central Bank Watch

Bank of England Retains 0.5% Bank Rate and Asset Purchase Guidelines

April 9, 2009

The Bank of England announced nothing dramatic as expected.  A brief statement said its benchmark rate, which was cut by 50 basis points in March and by 450 basis points from October to March, will remain at 0.5%.  Officials are not inclined to cut such further, fearing more drag than stimulus from such a move, […] More

New Overnight Developments Abroad - Daily Update

New Overnight Developments Abroad: Stocks Higher, Dollar Narrowly Mixed

April 9, 2009

Stocks rose 3.7% in Japan, 3.0% in Hong Kong, 4.3% in South Korea, 2.5% in Singapore, 1.0% in the Philippines, and 1.6% in China. The German Dax and Paris Cac are trading up by 1.1% and 0.5%, but the British Ftse is unchanged. The dollar has firmed 0.4% against the yen, 0.2% versus the Australian […] More

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