Archive for June 17th, 2009

Central Bank Watch

A Seventh Rate Cut in Norway

June 17, 2009

The Executive Board of the Norges Bank implemented a 25-basis point reduction of its policy rate to 1.25%. A majority but not all analysts anticipated this cut later in the summer.  Previously, the central bank had lowered its key rate by 100 basis points in two steps last October, 175 bps in a single move […] More

How the U.S. Current Account Deficit Was Funded Last Quarter

June 17, 2009

The current account deficit narrowed by $53.4 billion to $101.5 billion in 1Q09 from $154.9 billion in the final quarter of 2008 and to 2.9% of nominal GDP from 4.4% of GDP.  However, the deterioration of high-quality long-term net capital, that is portfolio investment and direct investment flows, amounted to $156.7 billion or almost three […] More

New Overnight Developments Abroad - Daily Update

New Overnight Developments Abroad: Sterling and Global Stocks Lower

June 17, 2009

The pound has lost 0.9% against the dollar.  Otherwise, the U.S. currency shows smaller gains of 0.4% against the Aussie and New Zealand dollars and 0.1% versus the Swiss franc, yen, and Canadian dollar.  The greenback is 0.2% weaker against the euro, which reportedly was buoyed by demand out of Russia and talk of planned […] More

Central Bank Watch

50 Basis Point Rate Cut in Chile

June 17, 2009

As in Turkey, Chile’s central bank cut its monetary policy interest rate by 50 basis points on Tuesday.  Six consecutive monthly rate cuts have reduced the rate from 8.25%, which prevailed from last September 4th through the first week of January to the new rate of 0.75%.  That ranks Chile with the biggest rate reductions […] More

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