Archive for April 6th, 2011

Central Bank Watch

ECB Rate Hike Gun is Locked and Loaded

April 6, 2011

Since the March policy meeting five weeks ago, ECB officials have painstakingly prepared markets for a rate hike on April 7, which presumably will be 25 basis points in size.  The statement released last month used all the coded expressions that generally precede an increases.  Comments by officials subsequently have backed up the initial signals, […] More

Central Bank Watch

Bank of England Unlikely to Modify Policy Thursday

April 6, 2011

The Bank of England policy announcement this month will be made at 11:00 GMT tomorrow. The February and March meetings of the Monetary Policy Committee produced identical votes.  Regarding the 0.5% Base Rate, its level since March 2009, two of nine (Weale and Dale) recommended a 25-basis point increase, one (Sentance) sought a hike of […] More

Central Bank Watch

More Stimulus from the Bank of Japan Seems Inevitable

April 6, 2011

Less than two weeks after the Tohoku – Pacific Ocean earthquake, Japan’s government released a preliminary study that estimated JPY 16 – 25 trillion of damage to human capital, housing, plant and equipment.  At the high end, a drag of 1.5% of GDP is foreseen in fiscal 2012.  The operative word is “preliminary.”  These are early […] More

New Overnight Developments Abroad - Daily Update

Weaker Yen and Dollar

April 6, 2011

The dollar climbed above JPY 85.0 for the first time since last September 24, edging up 0.2%.  The dollar otherwise lost 1.0% against the Swiss franc, 0.8% versus the kiwi, 0.5% relative to the Australian dollar and euro, and 0.3% against the Canadian dollar.  The greenback is unchanged against sterling and the yuan. Stocks in […] More

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