Larry's Blog
The U.S. Jobs Deficit
February 9, 2012
America’s jobs deficit recently climbed above 30 million workers. Although U.S. labor market data have improved considerably of late, Fed Chairman Bernanke continues to emphasize the market’s very weak overall level rather than the better pace of change, and he’s correct to do so. U.S. nonfarm payroll employment recorded identical rates of growth of 1.84% […] More
Central Bank Watch
Bank Indonesia: A Somewhat Controversial Rate Reduction
February 9, 2012
Bank Indonesia’s benchmark interest rate was cut unexpectedly to 5.75% from 6.0%. The cumulative decline since October has been 100 bps, and the new rate level is 75 bps lower than the post-Great Recession plateau of 6.50% from August 2009 until a 25-bp hike in February 2011. That hike was later than the onset of […] More
Central Bank Watch
Korean Monetary Policy Still on Hold
February 9, 2012
Five 25-basis point hikes in the Bank of Korea’s seven-day repo rate were done previously in July 2010, November 2010, January 2011, March 2011 and June 10, 2011. Since then, the benchmark has been kept at 3.25%, 200 basis points shy of its pre-August 2008 high. A statement from officials observes low domestic demand and […] More
Central Bank Watch
ECB Press Conference
February 9, 2012
The ECB Governing Council left its three key interest rates including a 1.0% refinancing rate unchanged as most analysts were expecting. The rates were cut by 25 basis points each in November and December but not changed in January. A statement was released today that Declared that hard and survey evidence since the January meeting […] More
Central Bank Watch
Bank of England Asset Purchase Program (APP) Expanded by Another GBP 50 Billion
February 9, 2012
The Bank of England’s APP has been raised from GBP 275 billion to a new ceiling of GBP 325 billion, which will be met by late April, that is within three months. The Bank Rate, 0.5% since March 2009, was left unchanged. A new quarterly Inflation Report will be released on February 15, and minutes […] More
New Overnight Developments Abroad - Daily Update
Big Day for Central Banks But Watching Greece Too
February 9, 2012
The Bank of England’s Monetary Policy Committee expanded quantitative easing as many thought it would. The Asset Purchase Program’s ceiling was raised to GBP 325 billion from GBP 285 billion. This extension is expected to take three months to complete. The Bank rate was held steady at 0.5%. The European Central Bank will announce its […] More
