Central Bank Watch
Central Bank of Brazil Eases By More Than Forecast
June 11, 2009
In contrast to expected decisions overnight by central banks in New Zealand (no change) and South Korea (also no change), the Brazilian Selic Rate was cut by 100 basis points, 25 bps more than anticipated. Such was the fourth reduction of 2009. The Selic Rate started the year at 13.75% and is now 450 basis […] More
Central Bank Watch
Bank of Korea Keeps 2% 7-Day Repo Rate
June 11, 2009
South Korea’s key policy interest rate was left at a record low of 2% for a fourth consecutive monthly meeting as expected, and a statement released by officials concluded that an accommodative stance will continue for the “time being.” Even though positive growth resumed last quarter just barely, downside risks persist, and inflation has subsided. […] More
Currency Markets in the News
Revised Japanese Growth – Highlights
June 11, 2009
Real GDP growth last quarter was revised to a seasonally adjusted annualized decline of 14.2% from negative 15.2% saar reported in May. Smaller drags from business investment (5.1 percentage points instead of 5.9 ppts) and inventories (0.6 ppts, down from 1.0 ppts reported earlier) accounted for most of the revision. Revisions also showed a diminished […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Dollar Lower on Global Recovery Optimism
June 11, 2009
The dollar suffered significant overnight losses of 2.4% against the kiwi, 1.7% against the Australian dollar and 1.0% versus sterling. The greenback also fell by 0.7% against the Canadian dollar, 0.3% against the euro and 0.2% relative to the Swiss franc. Pacific Rim equities closed mixed. Indonesia (-0.9%), India (-0.6%), Singapore (-0.4%), Japan (-0.1%), and […] More
Central Bank Watch
New Zealand Monetary Policy
June 11, 2009
The Reserve Bank’s cash rate was held at 2.5%, marking the first policy meeting since 2Q08 not to vote a rate cut. However, the rate bias remains downward. A statement from New Zealand monetary officials said the cash rate would likely be at 2.5% or lower until “the latter part of 2010.” Growth and inflation […] More
