Central Bank Watch
New Zealand Official Cash Rate Kept at 2.5%
April 28, 2010
New Zealand’s official cash rate (OCR) has been at 2.5% for a full year since a 50-basis point cut in April 2009. The decision to leave the OCR at 2.5% met expectations, but the statement from monetary officials was less hawkish than after the prior meeting in several respects. Less was said about private domestic […] More
Central Bank Watch
Brazilian Selic Rate Lifted for First Time Since September 2008
April 28, 2010
COPOM, the monetary policy committee at the Central Bank of Brazil, raised its key Selic interest rate from a record low of 8.75% to 9.5%. Analysts were unanimous in projecting an increase but split over whether the advance would be by 50, 75, or 100 basis points. Brazilian CPI inflation has accelerated from 4.3% at […] More
Larry's Blog
Germany’s Peculiar Role in the Present Euro Fiscal Crisis
April 28, 2010
The Greek debt problems is exacting disproportionate damage to the common currency’s reputation by demonstrating a lack of political cohesion to tackle a problem like this, by confirming that a single monetary policy cannot coexist with sixteen fiscal policies, by generating fears that a Greek default is a matter of when, not if, and by […] More
Central Bank Watch
Market Levels When the FOMC Has Met Before
April 28, 2010
The high state of alert among investors over Greece’s fiscal problems and the risks of contagion to other markets seemingly will prevent the Fed from modifying language predicting “exceptionally low levels of the federal funds rate for an extended period of time.” A further upgrade of the assessment of economic conditions seems likely but continues […] More
Central Bank Watch
Polish Central Bank Interest Rates Left Unchanged Again as Expected
April 28, 2010
The key seven-day reference interest rate of the Narodowy Bank has been at 3.5% since a 25 basis point reduction in June 2009. That was the sixth cut since November 2008 and brought the cumulative magnitude of ease to 250 bps from a cyclical peak of 6.0%. Analysts anticipate the onset of rate increases to […] More
New Overnight Developments Abroad - Daily Update
Greek Concerns Overshadowing FOMC Meeting
April 28, 2010
Ahead of an FOMC announcement at 18:15 GMT today, stocks tumbled further in Asia and Europe, as Euroland’s crisis keeps worsening and seemingly is likely to forestall any attempt by U.S. monetary officials to modify key language in their statement. The EU plans a summit on Greece on May 10. Strauss-Kahn, leader of the IMF, […] More
