Archive for November 2011

Central Bank Watch

Central Bank of Brazil Cuts Key Interest Rate for a Third Time

November 30, 2011

Central banks tend to cut interest rates faster than they raise them, and Brazil’s committee of policymakers known as COPOM is no exception.  During a six-month period from January 2009 to July 2009, the Brazilian Selic Rate was slashed by 500 basis points to 8.75%.  Subsequent tightening stretched over 15 months from April 2010 to […] More

Bonds and Stocks

November in Figures

November 30, 2011

November had uncanny parallels to October.  Most of October had seen a rise in risk appetite and associated weakness in the dollar and strength in equities, and in most of November just the opposite had occurred.  Former Greek Prime Minister Papandreou’s proposal to submit the October 26 EU rescue package to a referendum caused that […] More

Central Bank Watch

Central Banks Deliver Coordinated Program to Counter Funding Strains

November 30, 2011

At 13:30 GMT, the European Central Bank, Federal Reserve Bank, Bank of England, Swiss National Bank, Bank of Japan, and Bank of Canada simultaneously posted statements on their web sites announcing new actions to grease their collective ability to address financial market strains that are constraining credit to final users.  The statements have three parts. […] More

Central Bank Watch

A Shift of Monetary Gears By the Bank of Thailand

November 30, 2011

The one-day RP key central bank benchmark rate in Thailand has been cut by 25 basis points to 3.25% in a 5-2 vote with two policymakers who favored a reduction of 50 basis points.  Officials consider policy “accommodative” but reacted to evidence of a greater-than-previously-expected drag on growth from Thailand’s severe floods.  Another headwind depressing […] More

Deeper Analysis

North American Data Round-Up

November 30, 2011

November ended in a flurry of good North American data cheer.  Prior to today, investors learned of much stronger-than-forecast on-year growth in holiday retail sales during the post-Thanksgiving weekend.  Yesterday’s news that the Conference Board gauge of U.S. consumer confidence had jumped 15.1 points to 56.0 in November, best since July, added to the festive […] More

New Overnight Developments Abroad - Daily Update

Both Good and Bad News on a Busy Day

November 30, 2011

The People’s Bank of China implemented the first reserve ratio reduction, effective December 5, since 2008, cutting the ratio for largest banks by 50 basis points to 21.0%.  Such came after the close of trading and following a 3.3% drop in Chinese share prices on the final day of November.  The Bank of Thailand also […] More

Central Bank Watch

A 50-Basis Point Rate Hike in Hungary

November 29, 2011

A diversity of opinion had preceded today’s meeting of policymakers on the Monetary Council of the Magyar Nemzeti Bank, and the decision to raise the two-week deposit rate to 6.5% from 6.0% matched the most common forecast.  The benchmark’s cyclical low of 5.25% occurred from April 2010 until the monthly meeting one year ago in […] More

New Overnight Developments Abroad - Daily Update

Sanguine Market tone Amid Data Deluge

November 29, 2011

Stocks and commodities are mostly higher, and the dollar has given back more ground.  Italian sovereign debt auctions fetched much higher yields but were mostly subscribed.  EU finance ministers meet today in Brussels ahead of the semi-annual leaders summit on December 9.  One piece of key unfinished business concerns the details over how to enlarge […] More

Central Bank Watch

Israeli Central Bank Rate Cut

November 28, 2011

The Bank of Israel reduced its key interest rate by 25 basis points for the second time since September 26th.  Starting in August 2009 from a recessionary base of 0.50%, the rate had been raised by 75 bps that year, another 75 bps in 2010, and 125 bps in January-May of 2011 to a peak […] More

Deeper Analysis

New OECD Macro Forecasts: What a Difference a Half Year Makes

November 28, 2011

The Organization for Economic Cooperation and Development, consisting of 34 developed economies, publishes semi-annual forecasts in May and November.  New forecasts released today identify critical risks posed by the euro debt crisis and a potential substantial dose of U.S. fiscal restraint.  Growth forecasts are well below those estimated last May yet do not represent the […] More

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