Central Bank Watch
Dovish Statement From the Reserve Bank of New Zealand
September 9, 2009
The RBNZ did not cut its 2.5% official cash rate (OCR) for a third straight meeting, matching consensus market expectations, but an easing bias was kept that “expects to keep the OCR at or below the current level through until the latter part of 2010.” The latest statement from Governor Bollard a patchy recovery now […] More
Central Bank Watch
Other Central Bank Meetings on Thursday
September 9, 2009
Central bank rate announcements will also be made in South Korea, Peru and New Zealand, the last of which is due in less than two hours. From a high of 8.25% in the summer of 2008, the Reserve Bank of New Zealand implemented 575 basis points worth of cuts in the following sequence: 50 basis […] More
Bank of Canada Preview
September 9, 2009
The Bank of Canada lowered its overnight money rate target in six steps from 3.0% at the start of October 2008 to 0.25% at its meeting last April 21st, whereupon that level was declared the “effective lower bound.” A pledge was made at that time that contingent on inflation remaining benign (which it continues to […] More
Central Bank Watch
Bank of England Preview
September 9, 2009
The Monetary Policy Committee announcement at 11:00 GMT on Thursday will undoubtedly retain a 0.5% Bank Rate. That is its lowest practical level, reached six months ago in March when officials turned to quantitative easing and a supplementary way to loosen policy further. The Bank Rate had been cut by 450 basis points over the […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Dollar Consolidating after Monday-Tuesday Drop
September 9, 2009
The dollar firmed 0.3% against the yen and Aussie dollar and edged up 0.1% versus the Canadian dollar, but the U.S. currency slipped another 0.1% against sterling and the euro. The Swiss franc is steady. Asian stocks closed mixed, with those in Japan and the Philippines down 0.8%. Bourses also fell 1.0% in Hong Kong, […] More
Central Bank Watch
Very Accommodative Chilean Monetary Policy Stance
September 9, 2009
As expected, the Central Bank of Chile agreed to keep its TPM policy interest rate at 0.5% and to retain complementary unconventional quantitative measures — term liquidity facilities for banks that were established in July. The last rate cut was also made at that July meeting following six cuts in 1H09. All seven reductions amounted […] More
