Central Bank Watch
Brazilian Key Interest Rate Left Unchanged at 10.75%
October 20, 2010
Brazil’s monetary policy committee, COPOM, retained a 10.75% Selic rate, matching analyst expectations and the result of its prior meeting on August 31. Previously, the Selic rate was lifted by 75 basis points on April 28, another 75 bps on June 9, and 50 bps on July 21. The Central Bank of Brazil targets inflation […] More
Central Bank Watch
Dovish Tones in Bank of England and Fed Reports
October 20, 2010
It has become gospel in central banking circles that important policy changes must be communicated clearly in advance in order to produce desired market reactions. Minutes from the Bank of England’s October 6-7 meeting and the Fed’s report on regional economic conditions, known as the Beige Book, constitute an education of the public to anticipate […] More
Central Bank Watch
Bank of Canada Unveils a More Subdued Inflation Forecast
October 20, 2010
The Bank of Canada’s October Monetary Policy Report elaborates on the assertion in yesterday’s interest rate statement that the global and Canadian recoveries have entered a “new phase” with more gradual rates of growth than envisaged three months ago. The evolution of projected Canadian GDP growth over the past four quarterly policy reports is as […] More
Central Bank Watch
Thailand Monetary Policy Not Changed This Time
October 20, 2010
The program of interest rate normalization, as at some other regional central banks, was paused in Thailand, but a statement accompanying today’s decision to leave the one-day repo rate at 1.75% said more rate hikes would be coming and attributed today’s decision to greater uncertainty surrounding global economic and financial prospects since the previous policy […] More
New Overnight Developments Abroad - Daily Update
Investors Less Uncomfortable about China’s Rate Hike
October 20, 2010
In a catch-up move to yesterday’s blood-letting in other markets, Japan’s Nikkei lost 1.7%, and stocks fell by 0.9% in Hong Kong, 0.7% in Australia, 0.6% in Sri Lanka and India, 0.5% in New Zealand and 0.4% in Singapore and Indonesia. However, a rise of 0.6% in Chinese equities had a calming effect, and stocks […] More
