Archive for March 8th, 2012

Central Bank Watch

Peru

March 8, 2012

The Central Reserve Bank’s key monetary policy rate was left at 4.25% as expected.  It’s been there since May 2011, when a 10-step, one-year tightening cycle culminated.  4.25% is 300 basis points above the pre-May 2010 low but 225 bps below the pre-August 2008 high.  A statement from bank officials stresses that future monetary policy […] More

Central Bank Watch

Monetary Policy in Canada Left Unchanged as Expected

March 8, 2012

The Bank of Canada left its overnight money rate at 1.0%, the level since September 2010.  Although above the Great Recession low of 0.25%, 1.0% is "near historic lows, the financial system is functioning well, and there is considerable monetary stimulus in Canada," according to the latest statement from the Bank of Canada.  The statement […] More

Central Bank Watch

ECB Review

March 8, 2012

The ECB delivered no surprises.  Interest rates were left unchanged.  Projected growth in 2012 and 2013 was revised downward, while projected inflation especially in 2012 was revised upward mainly to take account of higher energy prices and indirect taxation.  Risks to the growth forecast are skewed to the downside, and those to prices are large […] More

Central Bank Watch

Bank Indonesia Sends Mixed Message

March 8, 2012

Bank Indonesia began the post-Great Recession process of normalizing interest rates much later than most central banks in Asia.  From December 2008 through August 2009, the policy reference rate had been slashed by 300 basis points to 6.5%, and an initial rate hike was not undertaken until February 2011.  That move had no follow-up second […] More

Central Bank Watch

Bank of England Review: No Change

March 8, 2012

A statement from the Monetary Policy Committee predictably left the 0.5% British Bank Rate unchanged and did likewise with the GBP 325 billion asset purchase program ceiling.  Minutes of this months meeting are due March 21.  At last month’s meeting when quantitative easing was extended by 50 basis points from GBP 275 billion, Adam Posen […] More

New Overnight Developments Abroad - Daily Update

Risk On ahead of ECB Press Conference and Greek PSI Deadline

March 8, 2012

The U.S. currency has risen 0.6% against the yen.  The dollar otherwise is down 1.2% against the kiwi, 0.7% relative to the Aussie dollar, 0.6% versus the euro, 0.4% against the Swissie and 0.3% versus the loonie and sterling.  The yuan is steady amid chatter that another Chinese reserve requirement cut or modification of yuan […] More

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