Deeper Analysis
September and Third Quarter in Figures
September 30, 2010
The dollar performed poorly in September and the third quarter especially against the euro and Australian dollar. A look at the table below makes it hard to argue that Japan’s intervention failed. The yen’s rise against the dollar of less than 1.0% was much smaller than the advance of other currencies. China finally put its […] More
Deeper Analysis
North American GDP and Unemployment
September 30, 2010
Canada and the United States released subdued GDP figures today. Canadian July GDP slipped 0.1%. Although negative growth in July had been expected, this was the first decline in eleven months, and weakness was pervasive. Manufacturing and construction respectively contracted by 0.7% and 0.5%. Energy, utilities, retail and wholesale turnover fell by 0.6%, 0.4%, 0.5% […] More
Central Bank Watch
Taiwan Gets a Second Rate Hike
September 30, 2010
The Taiwanese central bank benchmark rate was lifted by 12.5 basis points to 1.5%. This as-expected move follows one of similar size undertaken on June 24. The rate had been at a 55-year low of 1.25% following seven reductions totaling 362.5 basis points administered from June 2008 through February 2009. Taiwan has no consumer price […] More
New Overnight Developments Abroad - Daily Update
Third-Quarter Wind-Down
September 30, 2010
Many data releases arrived on this final day of the third calendar quarter. Sentiment is better toward Europe and more guarded about Japan and the United States. ECB 12-month and 6-month loans totaling EUR 93 billion are expiring. EUR 28 billion of 3-month ECB liquidity is not getting rolled over, as a EUR 104 billion […] More
Central Bank Watch
Polish Monetary Policy Unchanged as Expected
September 29, 2010
Narodowy Bank left its seven-day reference rate at 3.5%, the level since June 2009. A released statement anticipates moderate economic growth, limited wage and price pressures, and the possibility of global growth depressants. Real GDP rose 3.5% in the year to 2Q10, while the latest 12-month rise in consumer prices of 2.0% is a half percentage […] More
Central Bank Watch
Monetary Policy Unchanged in Romania
September 29, 2010
In another monetary policy announcement, the National Bank of Romania retained a key 6.25% policy rate. That has been the level since a 25-basis point reduction on May 4 and cuts of 50 bps in each month of the first calendar quarter of 2010. Monetary policy eased later in Romania than in many other countries. […] More
Central Bank Watch
No Change in Russia’s 7.75% Refinancing Rate
September 29, 2010
The Bank of Russia left its benchmark rate unchanged in spite of an acceleration of inflation to a 12-month pace of 6.7% in September from 6.1% in August, further ruble depreciation and some evidence of a rise in inflation expectations. The bank’s decision was anticipated by analysts. Policy continues to be oriented toward the promotion […] More
Central Bank Watch
State Bank of Pakistan Raises Policy Discount Rate to 13.5% from 13.0%
September 29, 2010
Today’s 50-basis point tightening of Pakistani monetary policy follows an initial rate hike of similar magnitude near end-July. No other rate changes have been made in 2010, and a cut of 50 bps was implemented last November. Catastrophic flooding has aggravated Pakistan’s pre-existing inflation problem. Consumer prices rose 2.5% on month and 13.2% on year […] More
New Overnight Developments Abroad - Daily Update
Euro Above $1.3600
September 29, 2010
The dollar is 0.3% weaker against the euro, Australian dollar and Canadian dollar. The greenback also lost 0.2% against the yen and 0.1% relative to the Chinese yuan but edged up 0.1% versus the Swiss franc. Sterling and the kiwi are unchanged against the dollar. Equities rose 1.2% in Hong Kong, 1.1% in Thailand, 0.7% […] More
Deeper Analysis
Bank of Japan "Tankan" Business Survey: Review
September 28, 2010
Business sentiment improved clearly between June and September. A marginal deterioration had been predicted in the June corporate survey, but analysts had discounted those projections and were looking for September readings more or less consistent with what the Bank of Japan has just announced. As in the June survey, today’s report anticipates weaker readings in […] More
