Central Bank Watch
Bank of Israel Policy Rate Kept at 0.75%
September 24, 2009
The Bank of Israel was one of many central banks that enacted several cuts in its policy interest rate during 4Q08 and 1Q09. Two cuts totaling 75 basis points were announced last October, followed by two more cuts in November of 50 bps each, single cuts of 75 bps in December and again in January, […] More
Central Bank Watch
Czech National Bank Keeps Two-Week Repo Rate at 1.25%
September 24, 2009
The Czech central bank made no further rate reduction for the second time in its last three meetings, which was the result expected by most analysts. However, two of seven policymakers voted in favor of a 25-bp cut to 1.0%. From a peak of 3.75%, the two-week repo rate had earlier been reduced by 25 […] More
Central Bank Watch
Taiwan Discount Rate Held Steady at 1.25% as Expected
September 24, 2009
Taiwan’s discount rate was last reduced in mid-February by 25 basis points to a 55-year low of 1.25%. In addition to six earlier cuts from September 26th to January 7, 2009, the discount rate had been lowered by 237.5 basis points in all from a prior peak of 3.625%. Taiwan’s recession ended dramatically in the […] More
Central Bank Watch
Hong Kong Monetary Policy Unchanged
September 24, 2009
The Hong Kong Monetary Authority announced no change in its 0.5% base rate. Domestic monetary policy is subordinated to the pegging the Hong Kong dollar at 7.8 per U.S. dollar, so interest rates move in lock-step with the Fed funds rate. That parity rate was set initially in October 1983; allowed fluctuations around such were […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Weaker Pound and Dollar
September 24, 2009
The dollar climbed 1.0% against sterling but has lost 0.8% relative to the yen, 0.6% against the kiwi, 0.5% versus the Aussie dollar and Swiss franc, 0.3% against the euro and 0.1% against the Canadian dollar. Reactions to yesterday’s FOMC statement are muted, as there were no major surprises or new initiatives. Attention now turns […] More
