Archive for January 27th, 2010

Central Bank Watch

New Zealand Reserve Bank Signals Onset of Rate Increased to Occur Around Mid-2010

January 27, 2010

As expected, the Reserve Bank of New Zealand retained a 2.5% cash rate.  It’s key policy rate has been at that level since the end of April 2009.  Seven reductions totaling 575 basis points were implemented between July 2008 and then, starting with a cut of 25 bps in July 2008 and followed by a […] More

Central Bank Watch

Brazil Monetary Policy Left Unchanged

January 27, 2010

Brazil’s monetary policy committee, known as COPOM, left the Selic Rate at 8.75%, where such has been for the past six months.  In the previous six-month period, by contrast, five rate cuts totaling 500 basis points were implemented: 100 bps each in January, April and June, 150 bps last March and a final decrease of […] More

Central Bank Watch

A Less Dovish FOMC Statement

January 27, 2010

The FOMC statement was less dovish than earlier ones in several respects. Less confidence was expressed that inflation would remain subdued.  The committee now says substantial resource slack is continuing to restrain cost pressures and that inflation is likely to be subdued for some time; before it had said substantial resource slack is likely to […] More

Larry's Blog

President Obama’s Challenge

January 27, 2010

Political pundits have defined tonight’s State of the Union address as a critical moment in U.S. politics.  Will voter support for what looks like a one-term presidency continue to get trimmed, or will the government be born again after an inspiring redefinition of its mission?  One learns to never say either never or always in […] More

Central Bank Watch

FOMC Preview

January 27, 2010

More anxiety exists now about the sustainability of the global and U.S. economic recoveries than when the FOMC met previously on December 16, so this is not the time to tinker with the basic thrust of monetary policy, which was summarized in the first sentence of the third paragraph of the last statement: The Committee […] More

Central Bank Watch

Iceland’s Central Bank Eases Somewhat Unexpectedly

January 27, 2010

Much of the statement released by the Central Bank of Iceland after a 50-basis point cut in key interest rates is devoted to the ongoing debt dispute and uncertainty over the country’s future access to foreign capital markets.  The debt crisis took a turn for the worse when Iceland’s president recently vetoed Icesave legislation on […] More

New Overnight Developments Abroad - Daily Update

Awaiting FOMC Statement and Obama’s State of the Union Speech

January 27, 2010

With attention on the FOMC and tonight’s address from President Obama, stocks fell further and the dollar is mixed. Equities lost 2.9% in India, 1.6% in Thailand and Australia, 1.4% in China, 1.2% in Singapore, 0.7% in South Korea and Japan, and 0.5% in Indonesia and Taiwan.  In Europe, the Paris Cac, British Footsie, and […] More

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