Archive for February 14th, 2012

Central Bank Watch

Bank of Chile: No Policy Change This Month

February 14, 2012

The monetary policy interest rate was left at 5.0% after having been cut by 25 basis points to 5.0%  in January.  That ease had broken an 475-basis point uptrend, administered through a dozen moves between June 2010 and June 2011.  A statement from officials after today’s Board meeting acknowledged the slow and uncertain growth outlook […] More

Central Bank Watch

Bank of Japan Eased

February 14, 2012

The Policy Board expanded quantitative easing and announced a formal inflation target.  Although these steps were flagged as possibilities in my BOJ meeting preview, they were not widely predicted, and the yen slid through 78.0 in response.  The Board met for six hours and 13 minutes over two days and reached its decision by a […] More

New Overnight Developments Abroad - Daily Update

Bank of Japan Easing Catches Some Analysts By Surprise

February 14, 2012

The yen weakened 0.6% against the dollar, and the Nikkei index of Japanese share prices went up 0.6% in response to BOJ actions. Japan’s central bank designated 1.0% as a medium-term operational core CPI target and vowed not to end its virtual zero interest rate policy until that goal is in sight and significant deflationary […] More

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