Archive for May 7th, 2009

Central Bank Watch

Czech National Bank Eases by 25 Basis points

May 7, 2009

The Czech key two-week repo rate has been cut by an as-expected 25 basis points to 1.5%.  The discount rate and Lombard rate were also reduced by 25 bps to 0.5% and 2.5%.  This was the central bank’s fifth rate cut of this cycle.  Earlier easings amounted to 50 basis points on February 6 and […] More

Central Bank Watch

Central Bank of Iceland Slashes Key Rate to 13% from 15.5%

May 7, 2009

The statement by Icelandic monetary authorities frames today’s 250-basis point rate cut as part of a shifting macroeconomic policy mix toward tighter fiscal policy and easier monetary policy.  Prospects for krona appreciation in the medium-to-longer term, greater disinflation than expected previously, and an endogenous tightening of monetary conditions as commercial bank operations normalize also justify […] More

Central Bank Watch

Review of ECB Actions and Press Conference

May 7, 2009

The refinancing rate was cut by 25 basis points to 1.0%.  This was the seventh cut since October from a peak of 4.25%.  Four of the cuts were by 50 bps, but just one exceeded that size, a 75-bp cut in December.  April’s reduction, like this one, was by 25 basis points. The deposit rate/marginal […] More

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Currency Thoughts Hits 1000 Postings

May 7, 2009

My review of the Bank of England statement below was the 1000th post of this blog.  If you haven’t already done so, please take a couple of minutes to fill out the brief customer satisfaction survey to make the next thousand posts even more useful.  Thank you for your support. More

Central Bank Watch

A Bank of England Surprise

May 7, 2009

The Monetary Policy Committee, which had not been expected to announce any policy changes, instead extended its asset purchase plan by Gbp 50 billion and for two more months.  In March, officials had said they would buy Gbp 75 billion of mostly government but also some corporate debt over a period of three months through […] More

New Overnight Developments Abroad - Daily Update

New Overnight Developments Abroad: Focus on Stress Test Results and ECB

May 7, 2009

Many big events today, headed by the U.S. stress test results for banks due at 20:00 GMT (much of which has been leaked already) but also the ECB at 11:45 GMT, and U.S. jobless claims, productivity and unit labor costs at 12:30 GMT. The Bank of England unexpectedly increased its asset purchase program by another […] More

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