Archive for June 21st, 2012

Central Bank Watch

No Change in Taiwan’s Benchmark Interest Rate

June 21, 2012

Following a quarterly review, monetary officials in Taiwan left their key policy interest rate at 1.87%.  This was the fourth rate review that resulted in no interest rate change.  From June 2010 through June 2011, five straight hikes of 12.5 basis points were implemented, lifting to benchmark by a total of 62.5 basis points from […] More

Deeper Analysis

FOMC Hangover

June 21, 2012

Press coverage of yesterday’s FOMC event agrees basically with my initial impression that less action was delivered than seemed warranted by the use of more dovish rhetoric.  Different explanations have been postulated to explain this disconnection. Officials suspect policy stimulus has reached a point of diminishing net bang for the buck.  They suspect that more […] More

Central Bank Watch

No Changes Made in Turkish Central Bank Rates

June 21, 2012

A fourth straight monthly policy meeting at the Central Bank of the Republic of Turkey ended in agreement not to change any part of the central bank rate structure. The main policy rate, the 7-day repo, has been at 5.75% since a 50-basis point cut last August.  The last change in the overnight borrowing rate, […] More

New Overnight Developments Abroad - Daily Update

Data Releases Mixed and Plentiful

June 21, 2012

The formal Declaration of G20 Leaders, who met earlier in Los Cabos, Mexico, is big on general objectives but sparse on detailed actions. The FOMC Statement accentuated the U.S. economy’s increasing softness, but the stimulus of a 6-month continuation of Operation Twist did not surpass expectations.  Stocks were mostly lower overnight. New Democracy leader Samaras […] More

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