Archive for March 9th, 2011

Central Bank Watch

New Zealand Gets 50 Basis Point Rate Cut to 2.5%

March 9, 2011

The Reserve Bank of New Zealand Reduced its Official Cash Rate by 50 basis points to 2.5%, returning to the cyclical low maintained for 14 months following 575 basis points of ease between July 2008 and end-April 2009.  A statement released by RBNZ Governor Bollard projects “quite weak” economic growth in the first half of […] More

Central Bank Watch

Bank of England Preview

March 9, 2011

This week’s policy decision is a difficult read.  Since splitting 6-3 in February, with six monetary policy committee members voting for no change, two wanting a Bank Rate hike of 25 basis points and one recommending an increase of 50 basis points, new information has emerged that could shake up opinion further.  We know from […] More

Central Bank Watch

Waiting for the Reserve Bank of New Zealand Interest Rate Announcement

March 9, 2011

Damages from the South Island earthquake on February 23rd may exceed 7.5% of of New Zealand GDP and perhaps even reach 10% of it.  A majority but by no means all analysts expect the Reserve Bank of New Zealand at 20:00 GMT today to announce a cut in its 3.0% Official Cash Rate as a […] More

Central Bank Watch

A 25-Basis Point Hike of the Thai One-Day Repo Rate

March 9, 2011

The Bank of Thailand’s Monetary Policy Committee voted unanimously to lift its key interest rate to 2.5% from 2.5% today.  Earlier rate hikes of the same size were announced on January 12, December 1, August 25, and July 14, 2010.  A released statement expects the spike in oil and other commodity prices to have a […] More

New Overnight Developments Abroad - Daily Update

Uneventful Day Thus Far

March 9, 2011

The dollar has eased 0.5% against the Swiss franc, 0.2% relative to sterling, and a scant 0.1% versus the yuan and commodity currencies such as the Aussie, New Zealand and Canadian dollars.  The dollar rose 0.2% overnight against the yen with Japan’s currency not getting any lift from fiscal yearend accounting-inspired capital inflows. The 10-year […] More

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