Central Bank Watch
Preview: Wednesday’s Bank of Canada Decision is a Very Close Call
September 7, 2010
When a second 25-basis point rate hike to 0.75% was announced on July 20 following a first such increase on June 1, Canadian monetary officials repeated the guiding remark about the future: “Given the considerable uncertainty surrounding the outlook, any further reduction of monetary stimulus would have to be weighed carefully against domestic and global […] More
Central Bank Watch
Australian Monetary Policy Declared "Appropriate" and Left on Hold
September 7, 2010
As widely expected, Australia’s Official Cash Rate (OCR) was left at 4.5%. A statement from the Policy Board of the Reserve Bank of Australia observed that the terms of trade (export/import price ratio) is back at its 2008 high and buoying Australian incomes. The overall economy has been growing at a clip that is near […] More
Central Bank Watch
Nothing New Expected or Delivered from the Bank of Japan Policy Board After Latest Meeting
September 7, 2010
Just a week before its regular September meeting, the Policy Board had held a three hour six minute unscheduled meeting that by an 8-1 vote had increased the amount of money to be provided through fixed-rate funds-supplying operations to banks against pooled collateral, so no additional easing was to be expected at this time. The […] More
New Overnight Developments Abroad - Daily Update
Fresh Concerns about Ezone Peripheral Economies
September 7, 2010
The euro fell 0.9% against the dollar. Stocks have declined 1.4% in Madrid, 1.2% in Paris, 1.0% in Zurich, 0.9% in London and 0.7% in Frankfurt. Ten-year sovereign bund and gilt yields are six and four basis points lower. Bond spreads between Euroland’s peripherals and Germany have widened to more than 935 basis points in […] More
