Archive for September 14th, 2011

Central Bank Watch

New Zealand Interest Rate Policy on Hold

September 14, 2011

Although New Zealand’s economy has been performing better than many other economies lately, policymakers at the Reserve Bank of New Zealand decided as widely anticipated to leave the Official Cash Rate (OCR) at its cyclical low of 2.5%.  A statement indicates that the directional rate bias is tilted to the upside but that timing hinges […] More

Central Bank Watch

Slight Easing Move in Russia

September 14, 2011

Bank Rossii cut its minimum one-day repo rate to 5.25% from 5.5% and narrowed the differential between such and the one day overnight deposit rate to 3.0% by also increasing the latter to 3.25% from 3.0%.  The intent of these actions is to lower money market interest rate volatility and to strike a more appropriate […] More

Deeper Analysis

Why the Yen is Strong

September 14, 2011

First, here’s some history.  Prior to the summer of 1971 when most dollar exchange rates were fixed, a dollar was worth 360 yen.  In the 1970s, Japan’s currency appreciated 50% to 240 per dollar, and it climbed another 67% to 144/USD by the end of the 1980s.  When the euro was launched at the end […] More

New Overnight Developments Abroad - Daily Update

Remaining Focus on European Debt

September 14, 2011

Share prices recovered 1.5% in Germany, 1.4% in France, and 1.1% in Britain, aided by a smaller-than-expected one-notch downgrading of French banks by Moody’s.  But regional news was not entirely good — Chinese Premier Wen scolded Europe for its fiscal difficulties and said the region shouldn’t count on a Chinese bail-out as the solution to […] More

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