Archive for November 19th, 2009

Central Bank Watch

Turkish Rate Cuts Nearing the End of the Line

November 19, 2009

As forewarned after the prior rate cut on October 15th, the Central Bank of the Republic of Turkey implemented its smallest overnight borrowing rate cut of the cycle, a 25-basis point reduction to 6.5%.  Twelve prior cuts added up to 1000 basis points and were distributed as follows: 50 bps in November 2008, 125 bps […] More

Central Bank Watch

Bank of Japan Preview: No Rate Hike on Radar Screen

November 19, 2009

The BOJ released new quarterly forecasts at its previous Policy Board meeting on October 30, which penciled in projected core CPI inflation of minus 1.5% this fiscal year, minus 0.8% in Fiscal 2010, and minus 0.4% in Fiscal 2011 ending March 2012.  Unless that deflationary view somehow changes, a rate hike is not likely before […] More

Larry's Blog

Double Dip, Anyone?

November 19, 2009

One indication of investor uneasiness is the frequency of the use of the expression “double dip.”  The term refers to a relapse into contracting activity after an economy has returned from recession to an expansionary phase of the business cycle.  As fate would have it, today’s Financial Times and Wall Street Journal each ran lead […] More

New Overnight Developments Abroad - Daily Update

New Overnight Developments Abroad: Yen and Dollar Climbed Significantly

November 19, 2009

The dollar has posted overnight gains of 2.3% against the kiwi, 1.4% relative to the Australian dollar, 0.8% against the Swiss franc, 0.7% versus sterling and the euro,and 0.6% against the Canadian dollar.  Risk aversion is making a comeback, and a 0.4% rise of the yen is consistent with that. Keeping with that theme of […] More

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