Central Bank Watch
Mexican Reference Rate Reduced to 4.5% from 4.75%
July 17, 2009
The Bank of Mexico implemented a seventh consecutive rate reduction and, as expected, reduced the size of the cut to 25 basis points from 50 bps in June, 75 bps each in May, April and March, 25 bps in February and 50 bps in January. In all, the seven reductions add up to 375 basis [...] More
Foreign Exchange Insights and Next Week
Next Week
July 17, 2009
Canada, Brazil, and Colombia hold interest rate policy meetings next week from which only Brazil is thought likely to ease. The Bank of Canada also publishes a quarterly update with news forecasts of the semi-annual Monetary Policy Report released in April. The Bank of England, Reserve Bank of Australia and Bank of Japan will be [...] More
Foreign Exchange Insights and Next Week
Foreign Exchange Insights: July 17th
July 17, 2009
What ended the Great Depression? The commonest answer, the Second World War, tells only part of the story. Here’s a clue: currency policy played a critical role in the solution. Had U.S. economic activity kept declining at the horrific pace of 1930-32 until America’s entry into war at end-1941, there would not have been any [...] More
Negative Canadian Consumer Price Inflation
July 17, 2009
The Canadian CPI declined 0.3% in the year to June, its first on-year drop since November 1994. After peaking at 3.5% last August, inflation fell to 1.1% by December and +0.1% in May. Higher energy costs, mostly for gasoline, accounted for a June-over-May seasonally adjusted 0.3% increase of consumer prices after a rise of 0.2% [...] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Bomb Blasts in Jakarta
July 17, 2009
The dollar and yen are firmer. The buck rose 0.8% against sterling, 0.7% versus the Aussie dollar, 0.6% relative to the kiwi and 0.3% each against the euro and Swiss franc. The dollar is flat against the Canadian dollar and up 0.1% against the yen. Stock markets continued to climb in reaction to positive earnings reports. [...] More
