Archive for March 16th, 2011

Central Bank Watch

A More Hawkish Statement from Norwegian Monetary Authorities

March 16, 2011

While leaving their key policy interest rate at 2.0% for a seventh straight meeting, officials at the Norges Bank released a statement that bumps the projected policy rate range for the coming three months to 1.75-2.75% from 1.50-2.00% predicted three months ago for the quarter that is ending shortly.  Firm Norwegian economic activity ahead and […] More

Central Bank Watch

A Pause in Icelandic Monetary Easing

March 16, 2011

After peaking at 18% in October 2008, the Sedlabanki seven-day lending rate was cut by 800 basis points in 2009, 550 bps in 2010, and by 25 basis points to 4.25% at the first policy meeting of this year on February 2.  In announcing no further easing today, a released statement from monetary officials observed […] More

Central Bank Watch

Previous Hong Kong Monetary Policy Reaffirmed: Key Rate to Stay at 0.5%

March 16, 2011

The Hong Kong Monetary Authority since 1983 has subordinated any semblance of an independent domestic monetary policy to the priority of fixing the former British colony‚Äôs currency at 7.78 per U.S. dollar.  To do this, officials have been setting their base rate at a small premium relative to the federal funds rate.  Policy meetings in […] More

Deeper Analysis

How the U.S. Current Account Deficit Was Funded in 4Q10 and 2010

March 16, 2011

The table below compares funding of the U.S. current account deficit in 4Q10 to the three prior quarters and its funding in calendar 2010 to 2009.  The deficit narrowed to 2.9% of GDP in 4Q from 3.4% in the two prior quarters but widened to 3.2% in 2010 from 2.9% in 2009.  The 2008 current […] More

New Overnight Developments Abroad - Daily Update

Some Bounceback Wednesday but Investors Remain on Edge

March 16, 2011

The Nikkei recovered 5.7% after slumping some 20% in the wake of Friday’s earthquake.  Stocks also climbed 1.8% in South Korea, 1.1% in India, 1.4% in China, 0.9% in Singapore and 0.7% in Australia.  However, the German Dax and Hong Kong market edged just 0.1% higher, and stocks in France and Britain have lost a […] More

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