Central Bank Watch
New Zealand Monetary Setting Still in Pause Mode at Very Accommodative Level
April 25, 2012
The last change in New Zealand’s Official Cash Rate (OCR) happened in March 2011 when a 50-basis point cut in the wake of the Canterbury earthquake returned the OCR to its cyclical low of 2.5%. Such had been at 2.5% also from April 2009 until June 2010. A statement on the Reserve Bank of New […] More
Deeper Analysis
Comments on the Bernanke Press Conference
April 25, 2012
Several useful messages were delivered at the press conference. One of the biggest downside growth risks still facing the United States is the uncertain degree of fiscal drag that will be felt at the start of next year. If Congress legislates no changes in planned austerity from the spending and tax side, the Fed Chairman […] More
Central Bank Watch
FOMC Statement
April 25, 2012
Today’s statement from the FOMC has extremely similar text to the previous statement of March 13 and the same 9-1 vote, with Richmond Fed President Lacker again dissenting because he “does not anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate through late 2014.” Almost all of the […] More
Central Bank Watch
FOMC Preview
April 25, 2012
In the six weeks since the last FOMC meeting, The dollar has softened 0.7% against the euro in spite of a reintensification of euro debt tensions. The dollar has also depreciated 1.7% relative to the yen. The ten-year Treasury yields is 8 basis points lower on balance and has dwelled below the psychological 2.00% level […] More
New Overnight Developments Abroad - Daily Update
Sterling Declined
April 25, 2012
Britain’s disappointing first-quarter GDP report depressed sterling. Small business sentiment in Japan also underperformed expectations. Speculation persists that the Bank of Japan will ease policy on Friday. Investors await today’s FOMC statement at 16:30 GMT and Fed Chairman Bernanke’s press conference at 18:15 GMT. New Zealand and Australia were closed to day for ANZAC Day, […] More
