Archive for January 25th, 2012

Central Bank Watch

Reserve Bank of New Zealand: No Change for Seventh Straight Meeting

January 25, 2012

New Zealand’s 2.5% Official Cash Rate (OCR) has been retained.  This continues to match the cyclical low maintained from April 2009 until June 2010.  The OCR was raised by 25 basis points each in June and July 2010 but cut by 50 bps in March of 2011.  A statement from the central bank cites "well-contained […] More

Central Bank Watch

Significant New Information Conveyed at the Bernanke News Conference

January 25, 2012

Before the start of today’s press conference, the FOMC had already managed to convey most of the really useful insights into Fed thinking, but a couple of great tips nonetheless were added by Chairman Bernanke. One should not look at the mean but rather the median of the scatter diagrams of predicted end-year levels of […] More

Deeper Analysis

A Virtual Easing by the FOMC

January 25, 2012

The Federal Open Market Committee didn’t cut Federal funds rate because it’s already been near zero since late 2008.  New quantitative easing wasn’t announced because the present round of Operation Twist still has five months to run.  The third major policy tool after cutting interest rates and unconventional measures to increase liquidity and depress longer […] More

Central Bank Watch

An FOMC Experiment in Transparency

January 25, 2012

Today is FOMC Day, and it will be like none before it and Federal Reserve officials elevate policy communication to new levels.  A typical FOMC statement will be published at 12:30 EST (17:30 GMT), and Chairman Bernanke begins a one-hour press conference at 14:15 EST (19:15 GMT).  New macroeconomic forecasts are scheduled for 4Q12, 4Q13, […] More

Central Bank Watch

Bank of Thailand Cuts Interest Rate a Second Time

January 25, 2012

Following up on a 25-basis point policy interest rate cut on November 30th, Thailand’s Monetary Policy Committee reduced such again as anticipated to 3.0% from 3.25% and released a statement that asserted inflationary pressure "remains contained" and identified "global headwinds" that could "pose risks to Thailand’s economic growth."  Not all of the drag on growth […] More

New Overnight Developments Abroad - Daily Update

Attention on FOMC and Davos

January 25, 2012

The annual World Economic Forum in Davos opens today with a speech from German Chancellor Merkel.  A PSI agreement between Greece and holders of its debt still hasn’t been reached.  The FOMC releases its policy statement at 17:30 GMT.  This will be followed by forecasts including the interest rate expectations of individual members, and Fed […] More

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