Archive for February 3rd, 2011

Central Bank Watch

A Closer Vote on Czech Central Bank Rate

February 3, 2011

Monetary officials at the Czech National Bank kept the two-week repo rate steady at 0.75%, which had been the universally expected outcome, and released a statement that does not imply a tightening before late 2011.  However, the vote for unchanged policy was razor-thin at 4-3, with three dissents in favor a rate hike of 25 […] More

Central Bank Watch

No Change Made in Romanian Monetary Policy

February 3, 2011

The National Bank of Romania left its monetary policy rate unchanged at 6.25%, its level since a 25-basis point cut last May 4th.  There were five rate cuts from February 2009 to September 2009 totaling 225 basis points followed by a further 175 basis points of rate reduction in four increments last year.  The central […] More

Deeper Analysis

PMIs Show Largest U.S. Edge Against Euroland in at Least Two Years

February 3, 2011

In contrast to the view of sluggish growth among advanced economies, the United States and Euroland reported strong manufacturing and non-manufacturing purchasing manager survey results for January.  A score of 50 is neutral.  Above that level connotes expanding activity in these diffusion indices, and results below 50 signify contraction.  Back in April 2009, none of […] More

Central Bank Watch

ECB Watching Inflation Closely

February 3, 2011

As expected, the ECB kept its key interest rates — a 1.0% refinancing rate flanked by a 0.25% deposit rate and 1.75% on the marginal lending rate — unchanged and declared such to be still accommodative yet appropriate.  The views remain intact of positive underlying growth ahead, above-target inflation in the near term due to commodity […] More

New Overnight Developments Abroad - Daily Update

Chinese New Year

February 3, 2011

Numerous Asian markets were closed today for the Lunar New Year, including China, Indonesia, Malaysia, Taiwan, Hong Kong and South Korea. Unrest in Egypt appears to be escalating, but Suez Canal traffic is still flowing normally.  Oil prices are 0.8% higher at $91.59 per barrel.  Gold edged up 0.1%. Fate of the euro, down 0.3% […] More

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