Deeper Analysis
North American Data
June 16, 2011
The U.S. $119.3 billion current account deficit last quarter equaled 3.2% of nominal GDP. That ratio matches the full-2010 ratio and perpetuates a generally flat trend of 3.3% of GDP in each of the first three quarters of 2010 followed by 3.0% in 4Q10. During the previous decade (2000-2009), the current account averaged 4.7% of […] More
Central Bank Watch
Quarterly Swiss Monetary Policy Review: No Rate Change
June 16, 2011
As expected, Swiss National Bank policy-makers have retained a 0.0 – 0.75% target range for three-month Swiss LIBOR with a point estimate of 0.25%. These have been the rate parameters since March 12, 2009 following cuts of 25 basis points in October 2008, 50 bps on November 6, 2008, 100 bps on November 20, 50 […] More
Central Bank Watch
Reserve Bank of India Tightens Again
June 16, 2011
The key repo rate and reverse repo rate, which moves in lockstep with the repo and lies 100 basis points below such, were raised by 25 basis points today. Reserve requirements were not changed and remain at 6.0%. The repo rate now becomes 7.5%. The previous rate hike was made on May 3. This was […] More
New Overnight Developments Abroad - Daily Update
A Frenzied Wave of Risk Aversion
June 16, 2011
Could Greece be another Lehman Brothers collapse? That’s the central theme of international markets where stocks, commodities, and sovereign debt yields are tumbling. Protesting Greeks in the streets have compelled Prime Minister Papandreou, an Amherst grad, to form a new cabinet and seek a vote of confidence from parliament in further austerity that will be […] More
