Central Bank Watch
Smaller-Than-Expected Brazilian Central Bank Rate Hike
July 21, 2010
Policymakers at the Central Bank of Brazil, known as COPOM, lifted their key Selic rate for a third time but by a lesser 50 basis points to 10.75%. Analysts were predicting a move of 75 basis points like those announced on April 28 and June 9. Nonetheless, the cumulative advance of 200 basis points thus […] More
Deeper Analysis
Balancing the Twin Fed Policy Mandates
July 21, 2010
The Federal Reserve is a creation of Congress and mandated by that legislative branch to promote two objectives: price stability and maximizing employment. Because of this accountability to Congress, the Fed Chairman is required to testify before the banking committees of the Senate and House twice a year. These appearances typically occur in February and […] More
New Overnight Developments Abroad - Daily Update
Wednesday Spotlight on Central Banks
July 21, 2010
The euro fell 0.7% against the dollar, 0.5% against sterling, and over 1% against the yen. Concern about Friday’s stress test results, which have been discredited already in the eyes of many investors, continues to rattle the European common currency even as European stocks advance. Commodity sensitive currencies are firmer. The loonie, kiwi, and Aussie […] More
