Archive for July 12th, 2012

Central Bank Watch

Peruvian Monetary Policy Continues on Hold

July 12, 2012

The monetary policy reference rate of the Central Reserve Bank of Peru was cut slashed during the Great Recession from 6.5% to 1.25% by February 2009.  Rate normalization began in May 2010, and there were ten rate hikes over the ensuing year to 4.25%.  No further change has been made since May 2011, and that […] More

Central Bank Watch

Bank of Korea Eases Monetary Policy

July 12, 2012

Korean monetary authorities switched priorities today from containing inflation to preventing an undue deficiency of economic growth.  In a released statement, officials appraised “the trend of economic growth to have weakened more than originally anticipated, with the rates of growth in exports and domestic demand remaining at low levels.”  The Monetary Policy Committee anticipates “a […] More

Central Bank Watch

Bank Indonesia’s Benchmark 5.75% since February Was Retained

July 12, 2012

In the Great Recession, Bank Indonesia cut its key interest rates from 9.5% to 6.5%, a low that was then maintained from August 2009 until a 25-basis point rate hike in February 2011.  That tightening proved short-lived when officials eased anew by 25 bps last October, 50 bps in November and 25 bps to 5.75% […] More

Central Bank Watch

Japanese Quantitative Easing Gets a Technical Tweak

July 12, 2012

After six and a quarter hours of deliberations over Wednesday and Thursday, the Bank of Japan Policy Board decided by votes of seven to zero to leave the 0-0.1% target range for overnight uncollateralized money unchanged and to retain a JPY 70 trillion (almost $883 billion) overall size limit to quantitative easing.  These results were […] More

New Overnight Developments Abroad - Daily Update

Euro, Stocks, and Bond Yields Drop Further

July 12, 2012

The euro fell 0.4% against the dollar, declining below $1.2200 and to within three cents of its June 2010 low.  The dollar has advanced by 1.3% and 1.2% against the commodity-sensitive New Zealand and Australian dollars.  The greenback fell 0.5% against the yen but is  higher by against the Swiss franc, 0.4% relative to the […] More

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