Central Bank Watch
Reserve Bank of New Zealand Policy Still on Hold
July 25, 2012
For the eleventh scheduled policy meeting at the RBNZ in a row, officials decided not to change the 2.5% Official Cash Rate, which is at an all-time low. The OCR was slashed during the Great Recession from 8.25% to 2.5%, a level reached at the end of April 2009. There were two subsequent hikes of […] More
Deeper Analysis
Britain’s Calamitous Economy and A Cautionary Tale
July 25, 2012
According to the Cameron government’s first estimate, British real GDP contracted for a third straight period in the second quarter and at an intensifying annualized rate of 2.7%. That drop was twice as rapid as the pace sustained from October 2011 to March of this year and depressed on-year growth to negative 0.8% from four-quarter […] More
Central Bank Watch
A Split Interest Rate Vote in Thailand
July 25, 2012
The Bank of Thailand’s Monetary Policy Committee disagreed 5-2 in its interest rate decision, with five committee members claiming “the current monetary policy stance to be accommodative enough to support domestic economic growth going forward and cushion, to some degree, against global economic risks.” The other two officials voted to cut the one-day 3.0% repo […] More
New Overnight Developments Abroad - Daily Update
Dollar’s Turn to Decline
July 25, 2012
Wednesday trading has seen a slight correction. The dollar has fallen 0.7% against the euro, which is back above $1.2100. The dollar also fell by 0.7% relative to the Swiss franc and is off 0.5% versus the Australian dollar, 0.4% against the loonie, and 0.3% vis-a-vis the kiwi. The dollar is 0.1% higher against the […] More
