Archive for September 3rd, 2009

Central Bank Watch

Bank Indonesia Ends Streak of Rate Cuts

September 3, 2009

Indonesia’s benchmark central bank rate was left unchanged at 6.5% as expected but nevertheless a streak of nine consecutive monthly reductions, totaling 300 basis points and consisting of six cuts of 25 basis points each and three of 50 bps.  A statement from monetary officials left no doubt that policy is in a transitional stage […] More

Central Bank Watch

Riksbank Vote For Unchanged Swedish Repo Rate Wasn't Unanimous

September 3, 2009

The Swedish Riksbank retained a 0.25% repo rate and projected that such is unlikely to be raised until the final quarter of 2010.  Today’s action breaks an uninterrupted streak of six reductions totaling 450 basis points from a high of 4.75%: 50 bps last October 8 in conjunction with several other central banks, then 50 […] More

Currency Markets in the News

Service-Sector PMIs Show Greatest Ezone Advantage Versus U.S. Since Last December

September 3, 2009

PMIs U.S. Ezone   U.S. Ezone   Sum of   Services Services Spread Mf’g Mf’g Spread Spreads Feb 2008 49.7 52.3 -2.6 48.8 52.3 -3.5 -6.1 March 49.9 51.6 -1.7 49.0 52.0 -3.0 -4.7 April 51.9 52.0 -0.1 48.6 50.7 -2.1 -2.2 May 51.2 50.6 +0.6 49.3 50.6 -1.3 -0.7 June 48.8 49.1 -0.3 49.5 […] More

Central Bank Watch

ECB Press Conference: Upwardly Revised Growth and Price Forecasts But Low Interest Rates to Continue

September 3, 2009

The ECB rate structure will remain unchanged.  The key refinancing rate stays at 1.0% and continues to be surrounded by a deposit rate of 0.25% and a marginal lending rate of 1.75%.  A second unlimited 12-month allotment of liquidity on September 30th will be made at the 1.0% refinancing rate, a signal of no urgency […] More

New Overnight Developments Abroad - Daily Update

New Overnight Developments Abroad: Lower Dollar Ahead of ECB Press Conference

September 3, 2009

The dollar is down 0.8% against the kiwi, 0.7% relative to sterling, 0.6% versus the Aussie dollar, 0.5% against the Canadian dollar, and 0.2% against the euro and Swissy.  But it has gained 0.2% against the yen.  FOMC minutes released yesterday were guardedly optimistic. Stocks in China leaped 5.6%.  Those in Thailand, Indonesia, Hong Kong, […] More

Central Bank Watch

Central Bank of Brazil Retains 8.75% Selic Interest Rate

September 3, 2009

The monetary policy committee, known as COPOM, left its monetary stance unchanged by unanimous vote.  A pause had been hinted after the prior meeting in July and expected ahead of this week’s meetings.  The last two rate announcements of 2009 set for October 21st and December 9 will also likely leave the Selic rate at […] More

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