Archive for October 11th, 2012

Central Bank Watch

Bank Indonesia Waiting and Seeing

October 11, 2012

Indonesia’s central bank rate, which has been 5.75% since three cuts totaling 100 basis points (25 basis points in October 2011, 50 bps one month later and 25 bps in February of this year), was again left unchanged after officials held their monthly policy meeting.  A statement asserts that “the current policy rate is considered […] More

Central Bank Watch

Bank of Korea Implements a Second Rate Cut since July

October 11, 2012

The seven-day repo rate was reduced to 2.75%, the lowest level since 1Q11, from 3.0% and a peak prior to July of 3.25%.  A rather downbeat statement posted on the Bank of Korea web site speaks of “lackluster” exports and domestic demand and “judges the downside risks to growth to be large, owing chiefly to […] More

Central Bank Watch

Bank of Brazil Policymakers Elect to Cut the Selic Rate for a Tenth Time

October 11, 2012

The monetary policy committee, Copom, reduced its main Selic interest rate to a record low of 7.25% from 7.5% late Wednesday and released a statement that underscored the difficulty of policymaking in a period of excessively weak economic growth but also higher inflation. Considering the balance of risks for inflation, the domestic activity recovery and […] More

New Overnight Developments Abroad - Daily Update

Several Issues in the Spotlight

October 11, 2012

A slowdown of emerging market growth elicited interest rate cuts in Brazil and South Korea but not Indonesia. S&P downgraded Spain’s credit rating by two notches.  The move was not surprising. Italian debt auctions produced mostly lower interest rates and higher bid-cover ratios.  From a size standpoint, the top end of planned sales was achieved. […] More

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