Archive for October 24th, 2012

Central Bank Watch

Reserve Bank of New Zealand Keeps 2.5% Official Cash Rate

October 24, 2012

For the 22nd time in the last 25 interest rate policy meetings dating back to June 2009, the RBNZ’s Official Cash Rate was left unchanged at 2.5%.  The three exceptions were two hikes of 25 bps administered in June and July of 2010 and a post-earthquake cut of 50 bps in March 2011.  2.5% matches […] More

Central Bank Watch

The FOMC Statement: No Surprises or Market Reaction

October 24, 2012

The October 24th statement from U.S. monetary officials made only a few generally inconsequential changes to the previous September 13 statement.  The final meeting of 2012 on December 11-12 promises to be more newsworthy.  By then, a lame-duck congress will be dealing with the fiscal cliff, and the identity will be known of the next […] More

Deeper Analysis

Ten Highlights of Bank of Canada Monetary Policy Report

October 24, 2012

Notwithstanding next year’s fiscal drag, the United States is expected to enjoy a huge economic growth advantage by 2014.  U.S. GDP then is projected to expand 3.2% versus GDP growth of 1.0% in the euro area and 1.1% in Japan.  Chinese growth of 7.7% will remain depressed to average Chinese growth over the past two […] More

Central Bank Watch

FOMC Preview

October 24, 2012

Today’s FOMC announcement, due at 14:15 EDT (18:15 GMT), is not expected to contain market-moving news for a variety of reasons.  Number one, a press conference has not been scheduled.  Number two, Fed officials do not want to appear politically motivated by acting so near to the presidential and congressional elections.  Indeed, the voting results […] More

New Overnight Developments Abroad - Daily Update

PMI and IFO Data Show Darkening German Economy

October 24, 2012

The euro and Swiss franc have declined 0.3% against the dollar, which is otherwise off 0.6% against the Australian dollar, 0.4% versus sterling, 0.3% relative to the kiwi, 0.2% against the loonie and 0.1% vis-a-vis the yen. Today’s focus will be the FOMC statement.  No press conference is scheduled, so the statement will be released […] More

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