Central Bank Watch
An As-Expected 50-Basis Point Central Bank Rate Hike in Chile
September 16, 2010
The Policy Board of the Central Bank of Chile meets each month and raised its policy rate by 50 basis points for a fourth straight time. A statement from officials described a need to withdraw the significant stimulus provided during Chile’s recession. From a peak of 8.25%, the rate plunged 600 basis points in the […] More
Central Bank Watch
Turkish Monetary Policy Again Left Unchanged
September 16, 2010
As expected, the one-week repo rate at the Central Bank of the Republic of Turkey was kept at 7.0%, and a statement from officials once more kept to the mantra that they expect “to keep rates at present levels for some time longer and at low levels for a long time.” It wasn’t that way […] More
Deeper Analysis
U.S. Balance of Payments Dissected
September 16, 2010
Today, the Commerce Department released its second-quarter report on U.S. international transactions, the most comprehensive compilation of the balance of payments, and the Treasury Department published its more timely July monthly figures on international capital flows. Both releases contain a slew of items at varying levels of aggregation. Here are some highlights. The current account […] More
Central Bank Watch
Swiss National Bank Leaves Rate Target at 0.25% and Releases Dovish Statement
September 16, 2010
The Swiss franc fell as investors were wrong-footed by the new quarterly Monetary Policy Statement. A forecast earlier this week by UBS flagging the risk of a surprise rate hike, which would have been the first tightening since September 2007, had received considerable attention and had lifted the franc through par to the dollar. Not […] More
Central Bank Watch
Reserve Bank of India Implements Fifth Rate Hike Since March
September 16, 2010
As on July 27, India’s repo rate was raised 25 basis points, but the reverse repo rate was increased by 50 basis points. Analysts had only predicted a 25-bp advance in each rate. The new levels are 6.0% and 5.0%, respectively. Reserve ratios were not changed. Rates were also raised by 25 bps each on […] More
New Overnight Developments Abroad - Daily Update
More Japanese Intervention Threatened But Not Done
September 16, 2010
Yesterday’s intervention by Japan of almost $22 billion equivalent was a single-day record, but nothing further has been reported so far today. Prime Minister Kan nonetheless said the operations will continue. The Bank of Japan is reportedly resisting political pressures to call an emergency Policy Board meeting and enact further quantitative easing. Governor Shirakawa simply […] More
