Archive for March 2nd, 2011

Central Bank Watch

50-Basis Point Brazilian Rate Hike Matches Expectations

March 2, 2011

COPOM, the Bank of Brazil’s policy-making committee, increased its Selic rate to 11.75% from 11.25%, bringing cumulative tightening over the past eleven months to 300 basis points in five steps.  Such reverses 60% of the easing done during the first seven months of 2009, which also was implemented in five steps.  A brief statement from […] More

Central Bank Watch

An Important ECB Press Conference Tomorrow

March 2, 2011

The ECB will not raise its 1.0% refinancing rate tomorrow, nor modify the deposit rate and marginal lending rate that symmetrically flank it at 0.25% and 1.75%.  A signal of an imminent tightening next month also seems doubtful.  The last rate change was made in May 2009.  Officials are expected to upgrade the inflation risk […] More

Central Bank Watch

Polish Monetary Policy Left Unchanged in Possible Close Call

March 2, 2011

Narodowy Bank has implemented just one hike of its reference rate thus far, a 25-basis point increase on January 19 to 3.75%.  From June 2008 to November 2008, the rate had crested at 6.0%, still 225 basis points above the current level.  Monetary officials target CPI inflation in the medium term at 2.5%, give or […] More

New Overnight Developments Abroad - Daily Update

European Currencies Stronger against Dollar and Yen

March 2, 2011

The dollar fell 0.4% against the euro and Swiss franc and 0.3% relative to sterling.  The greenback is unchanged relative to the Canadian and Australian dollars as well as the yen.  The dollar has risen 0.7% versus the kiwi and 0.1% against the yuan.  Middle Eastern buying of euros has been reported.  Libya is closer […] More

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