Bonds and Stocks
Fear of Financial Contagion
May 4, 2010
The world recession of 2008-9 demonstrated the interconnectedness of global financial markets and how quickly a localized malfunction can destabilize other seemingly insulated and unrelated areas. Excessive sovereign deficit-spending and debt are not unique to Europe or the euro area. Public finances were thrown out of whack in numerous countries by the policy response to […] More
Central Bank Watch
A Ninth Rate Cut in Romania
May 4, 2010
The National Bank of Romania cut its policy interest rate to 6.25% from 6.5% as expected. The 25-basis point magnitude of this ninth easing since February 2009 matches the size of the first move, while each of the intervening seven reductions were by 50 basis points including ones in each month of 1Q10. Romania is […] More
Central Bank Watch
A Sixth Tightening of Australian Monetary Policy May Be Last for a While
May 4, 2010
Following 25-basis point increases of the Reserve Bank of Australia’s Official Cash Rate (OCR) last October, November, December, March and April, a sixth tightening of equal magnitude was announced today as many anticipated. No central bank has lifted its interest rate as many times or as far as Australia since the world recession. A statement […] More
New Overnight Developments Abroad - Daily Update
Greek Concerns Haven’t Dissipated
May 4, 2010
In Europe, the Paris Cac, British Ftse and German Dax have lost 1.5%, 1.1%, and 0.8%. Public-sector workers are protesting in the streets of Athens. Fear persists that the crisis could spread to Iberia and that Greek debt will still have to be restructured eventually. Trichet has backtracked on stand that monetry policy will not […] More
