Archive for August 24th, 2010

Central Bank Watch

Hungary and Poland Monetary Policy Decisions: No Changes

August 24, 2010

Yesterday the Magyar Nemzeti Bank announced no change in Hungary’s central bank Base Rate of 5.25%.  Fourteen reductions totaling 625 basis points between November 2008 and April 2010 had been implemented earlier.  There have been no hikes yet, but some informal consideration of such appears to have been entertained, since a new statement from officials […] More

Central Bank Watch

Israeli Monetary Policy

August 24, 2010

The Bank of Israel yesterday announced no change in the 1.75% Policy Rate, which had previously been raised by 25 basis points each in August, November and December of 2009 and March and July of this year.  A statement from the Bank called policy still “expansionary” and spoke of an uneven normalization process that now […] More

Central Bank Watch

A 100-Basis Point Icelandic Rate Cut on August 18th

August 24, 2010

A full percentage point reduction of the Icelandic benchmark interest rate to 7.0% last week was twice as much as analysts were anticipating and justified as follows: Lower inflation, lower inflation expectations, a stronger kr√≥na, and the prospect of more rapid disinflation than previously expected provide the scope for a larger interest rate reduction than […] More

Central Bank Watch

Mexican and Colombian Key Interest Rates Unchanged After August 20th Policy Meetings

August 24, 2010

Mexico’s overnight central bank interest rate was held at 4.5%, the setting since July 2009, as was expected.  GDP advanced 7.6% in the year to 2Q10, while CPI inflation had an on-year 3.6% rate of increase in July.  A statement from the central bank promised to watch measures of expected inflation and the output gap. […] More

Central Bank Watch

Turkish Monetary Policy Left Unchanged

August 24, 2010

After meeting on August 19, officials at the Central Bank of the Republic of Turkey kept the one-week repo rate steady at 7.0%, reiterated that it would be necessary to maintain policy rates at current levels for some time and to keep them at low levels for a long period, and released a a statement […] More

New Overnight Developments Abroad - Daily Update

Market Squeezing Japan

August 24, 2010

The Nikkei-225 closed at 8,995, the first sub-9000 closing since May 6, 2009.  The daily drop of 1.3% brought the cumulative decline since April 5, 2010 to 20.7%, thus qualifying as an official bear market.  The yen advanced 0.9% against the dollar, touching a 15-year high of 84.15.  The yen also hit a 9-year high […] More

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