Archive for December 12th, 2012

Central Bank Watch

Bernanke Press Conference Highlights

December 12, 2012

Several questions were directed at the fiscal cliff, a term first suggested by Bernanke.  He felt the metaphor was still good and didn’t support the position of some that if a deal can be reached a couple of weeks into 2013 that the damaging effect would be only slight.  He reiterated that the Fed doesn’t […] More

Central Bank Watch

FOMC Statement

December 12, 2012

The latest FOMC statement takes several fresh actions, none very surprising, without an accompanying significant modification of its characterization of growth conditions or inflation. No comment on the dollar or net exports appears, but a softer exchange rate is an implicit objective. Quantitative easing will continue at the start of 2013 at a pace of […] More

Central Bank Watch

FOMC Preview

December 12, 2012

The statement from the FOMC is due at 16:30 GMT and will be followed by a press conference at 18:15 GMT.  There is no doubt in the market that new quantitative stimulus will be forthcoming.  The only suspense concerns the amount and terms of the new actions.  Analysts have felt that the message will be […] More

Central Bank Watch

Central Bank of Iceland: No Rate Hike this Month

December 12, 2012

Sedlabanki has instituted six central bank interest rate tightenings since August 2011, most recently a 25-basis point hike of the seven-day collateralized lending rate on November 14 to 6.0%.  Earlier moves occurred in June, May, March and August and November of 2011.  Only the 50-bp increase in May 2012 was not be 25 basis points.  […] More

Central Bank Watch

Central Bank Rate Cut in Sri Lanka

December 12, 2012

The intended impact of rate hikes of 50 basis points last February and another 25 bps in April have been largely reaped.  Money and credit growth are slowing.  Real economic growth, although ample, has moderated, and the trade deficit has narrowed.  In a newly released statement, officials defended today’s reversal of last April’s tightening.   “Having […] More

New Overnight Developments Abroad - Daily Update

Awaiting the Fed’s Press Conference

December 12, 2012

There’s been no breakthrough in the U.S. fiscal negotiations.  House Speaker Boehner rejected the White House plan of $1.4 trillion of budget cuts. The FOMC is expected to announce an aggressive extension of quantitative easing.  The existing Operation Twist is scheduled to last only through end-2012.  The FOMC decision will be announced at 12:30 EST, […] More

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