Central Bank Watch
Peruvian Key Interest Rate Lifted 25 Basis Points
May 12, 2011
The Central Reserve Bank of Peru also has raised its key reference rate in a hurry after having cut such extensively during the world recession. The rate was reduced by 525 basis points from 6.5% prior to February 2009 to 1.25% just six months later. Today’s increase of 25 basis points was the tenth increase […] More
Central Bank Watch
50-Basis Point Hike of Chilean Monetary Policy Interest Rate
May 12, 2011
Few central bank interest rates have traced a U-shaped pattern quite as well as Chile’s. Seven consecutive monthly cuts from January through July of 2009 slashed the rate by 775 basis points to a cyclical low of 0.5% where it remained for eleven months. Beginning in June 2010, monetary officials have lifted their interest rate […] More
Central Bank Watch
South African Reserve Bank Retains Cyclically Low 5.5% Repo Rate as Expected
May 12, 2011
Six previous reductions totaling 500 basis points between December 2008 and August 2009 and a further three cuts of 50 basis points apiece in March, September and November 2010 slashed the South African repo rate from 12.0% to 5.5%, where such has stayed for the past six months. Policy now lies in limbo. Growth isn’t […] More
Central Bank Watch
No Rate Change This Month from Bank Indonesia
May 12, 2011
Bank Indonesia continues to err on the side of monetary accommodation, placing it on the looser end of the spectrum of Asian monetary policies. Officials meet each month to set their key reference rate, by over the past twenty-one months, they have tightened just once, that being a 25-basis point increase to 6.75% on February […] More
Central Bank Watch
First Norwegian Rate Hike in a Year
May 12, 2011
The Executive Board of the Norges Bank raised its key policy rate to 2.25% from 2.0%. Three earlier hikes of 25 basis points each were implemented in October 2009, December 2009 and May 2010. The key rate remains 350 basis points lower than its pre-October 2008 cyclical peak of 5.75%. According to a statement released […] More
New Overnight Developments Abroad - Daily Update
Fearful Markets
May 12, 2011
Commodities and stocks have been hammered. The dollar and yen are stronger. Investors fear a commodity market squeeze from higher margin requirements. Another worry is that European leaders may not agree to a larger aid package for Greece. Weak overnight data are meanwhile weighing on economic growth prospects. Then there is the fast-approaching end of […] More
