Archive for December 18th, 2012

Central Bank Watch

Another Hungarian Central Bank Interest Rate Cut

December 18, 2012

Officials at the Magyar Nemzeti Bank cut the 2-week bill rate by 25 basis points for the fifth straight month.  The first of these moves in August to 6.75% was the first rate reduction since April 2010.  The rate level now becomes 5.75%, still 50 basis points above the Great recession trough. A background statement […] More

Central Bank Watch

First Cut of Turkey’s One-Week Repo Rate since August 2011

December 18, 2012

Turkey monetary officials continue to face conflicting imperatives.  Growth last quarter (up just 1.6% from 3Q11) was its weakest since 2009, and CPI inflation has dipped under 6.5%.  However, a current account deficit is shrinking only gradually and at some 6.5% of GDP remains greater than desired.  An assortment of tools are employed to balance […] More

Central Bank Watch

Swedish Monetary Policy Eased but Officials Expect No Changes Next Year

December 18, 2012

A 25-basis point cut in the Riksbank repo rate to 1.0% announced this morning was accompanied by rate guidance that 1.0% is likely to be both the average and endyear rate level in 2013. Risks around that level are balanced.  Today’s action had been anticipated and followed earlier 25-basis point cuts in December 2011 and […] More

Deeper Analysis

How the U.S. Current Account Deficit was Funded Last Quarter

December 18, 2012

The U.S. current account deficit dropped $10.6 billion in the third quarter.  Although the decline was a bit less than analyst forecasts, it represented a 0.3 percentage point (ppt) reduction from the second quarter and a drop of 0.8 ppts from the first quarter of 2012.  All financing for the current account gap in 3Q […] More

Central Bank Watch

Reserve Bank of India Appears to Pre-Announce Easier Stance Next Quarter

December 18, 2012

The Reserve Bank of India did not cut its 4.25% cash reserve requirement (CRR) as widely expected after its review of monetary policy.  Indian growth slowed below 6% this year, and inflation has moved lower recently.  The CRR had been reduced by 25 basis points each in September and October and, before that, by 50 […] More

New Overnight Developments Abroad - Daily Update

Investors Heartened by Reported Progress on Fiscal Cliff Talks

December 18, 2012

Share prices rose overnight by 1.0% in Japan, 0.6% in India, 0.5% in Australia, 0.3% in New Zealand and Thailand, 0.2% in Taiwan and the Philippines, and 0.1% in China.  In Europe, equities have advanced 0.7% in Madrid, 0.4% in Frankfurt and Milan, and 0.3% in London, but the Paris Cac is off 0.1%. Not […] More

css.php