Central Bank Watch
Brazilian Rate Hike of 25 Basis Points
June 8, 2011
The Bank of Brazil’s monetary policy committee, known as COPOM, has implemented its seventh rate hike, lifting the Selic Rate to 12.25% from 12.0%. The action was widely forecast and followed consecutive increases in January, March, and April. Five cuts totaling 500 basis points were made between January 2009 and September of that year. The […] More
Central Bank Watch
New Zealand Interest Rate Unchanged But More Hawkish Statement Released
June 8, 2011
The Reserve Bank of New Zealand’s Official Cash Rate (OCR) will remain at 2.5% at least until the next meeting in late July. However, a statement on the central bank web site serves notice that rate rises lie ahead. First a little history. New Zealand’s economy was recovering from policy-induced recession when the Great Recession […] More
Central Bank Watch
Bank of England Preview
June 8, 2011
The Bank of England will keep policy unchanged. The Monetary Policy Committee’s decision is due at 11:00 GMT, 90 minutes before the start of the ECB press conference on Thursday. Almost always when not changing policy, the decision is reported initially with elaboration about the committee’s discussion or vote. This will not be an exception. […] More
Central Bank Watch
ECB Preview
June 8, 2011
My review of the May 5th ECB meeting concluded, “most likely, the statement in June will contain the ‘strong vigilance’ allusion, preparing markets to expect a second rate advance in July.” In spite of greater concerns now about global growth prospects, signs of slower growth momentum in the euro area, and persistent strains in the […] More
Central Bank Watch
Fourth Central Bank Rate Hike in Poland
June 8, 2011
The Narodowy Bank reference rate has been lifted 25 basis points to 4.5%, bringing its cumulative rise to 100 bps. The cyclical low of 3.5% had been kept for 19 months to January 2011 following 250 bps of easing administered from November 2008 through June 2009. A statement on the central bank web site cites […] More
New Overnight Developments Abroad - Daily Update
Risk Aversion Sends Stocks and Commodities Lower and Yen and Dollar Higher
June 8, 2011
Euroland officials still haggling over the composition of a Greek bailout. OPEC ministers meeting in Vienna have range of stands over whether to raise oil production. Moody’s again warns that British AAA sovereign debt rating may get downgraded. Today’s release of the Fed Beige Book of regional trends comes amid mounting concern that U.S. growth […] More
