Archive for June 25th, 2009

Central Bank Watch

Reserve Bank of South Africa Keeps 7.5% Repo Rate in a Surprise

June 25, 2009

Even though a 100-basis point rate cut on May 28th had been at the top end of expectations, analysts had been primed for another drop in the repo rate today after earlier news of a 1.1% drop in South African producer prices last month that cut on-year PPI inflation from 2.9% in April to negative […] More

Central Bank Watch

No Monetary Policy Change By Taiwan

June 25, 2009

As analysts anticipated, officials at Taiwan’s central bank left key interest rates unchanged, including the 1.25% discount rate.  That rate was last reduced in mid-February.  A statement released on the central bank’s website found the recession to be “abating” after a GDP plunge of 10.2% between 1Q08 and 1Q09.  Inflation has dipped marginally under zero, […] More

Central Bank Watch

No Change in Czech Central Bank Rate of 1.50%

June 25, 2009

Most analysts were fooled by the Czech Central Bank’s split 4-1 decision not to cut its 2-week repo rate any further after today’s policy meeting.  Earlier reductions had been implemented of 75 basis points on November 7, 50 basis points each on December 18 and February 6, and 25 bps each on August 8 and […] More

Swiss Monetary Officials Need to Be Taken Very Seriously

June 25, 2009

Policy makers at the Swiss National Bank hold just four policy meetings per year in the middle of the final month of each calendar quarter. In March, the target interest rate (three-month Swiss Libor) was lowered to 0.25%, as far as it can realistically go.  But officials  felt that doing that alone would not adequately […] More

Currency Markets in the News

Printed Press Coverage of FOMC Statement… ECB Steals the Show

June 25, 2009

Reporting today in the Financial Times, Wall Street Journal and  New York Times stressed that Fed policymakers are in difficult circumstances, endeavoring to steer a balanced approach and retain sufficient flexibility to adapt to an uncertain future without creating undue surprise to market participants. Edmund Andrew’s entitled his NYT article “Fed Maintains Status Quo, Keeping […] More

New Overnight Developments Abroad - Daily Update

New Overnight Developments Abroad: IMF Warning on Ireland

June 25, 2009

The dollar mostly firmed in continuing post-FOMC trading.  The Fed did not modify its bond purchase program and saw further progress toward end of recession.  The greenback is up 0.7% against the yen, 0.6% versus sterling, 0.4% relative to the Canadian dollar, 0.3% against the kiwi, and 0.2% versus the Swiss franc.  The Australian dollar […] More

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