Archive for January 30th, 2013

Central Bank Watch

Reserve Bank of New Zealand

January 30, 2013

The Official Cash Rate of the RBNZ, which has been at 2.5% since a 50-basis point cut in March 2011 soon after the South Island earthquake, was again left at that level and called “appropriate” in a statement from Governor Wheeler.  2.5% matches the Great Recession low following seven cuts between July 2008 and June […] More

Central Bank Watch

New FOMC Statement Not More Hawkish than December Statement

January 30, 2013

Based on minutes of the December meeting, it had seemed plausible that the Fed might tweak the communication of its policy in such a way as to suggest greater consideration over an earlier end to quantitative easing than imagined previously.  That didn’t happened.  Nor did today’s statement change any existing policy, which was as analysts […] More

Deeper Analysis

A Few Observations on the U.S. GDP Report

January 30, 2013

Analysts had anticipated slower economic growth in the final quarter of 2012 but not a 0.1% annualized contraction of GDP.  The politician/layman’s definition of a recession requires two straight quarters in which real GDP shrinks.  The more technical  requirements of the economists entrusted with dating economic downturns looks at monthly data for such things as […] More

Central Bank Watch

FOMC Preview

January 30, 2013

Substantial market changes have occurred since the previous FOMC meeting seven weeks ago. Quantitative monetary easing hasn’t prevented the ten-year treasury yield from rising 32 basis points to 2.02%. The dollar has appreciated 9.4% against the yen but fallen by 3.5% against the euro. The price of West Texas Intermediate crude oil has advanced a […] More

New Overnight Developments Abroad - Daily Update

FOMC Day Among Other Things (Like the First Estimate of 4Q U.S. GDP)

January 30, 2013

The yen fell to its lowest dollar level (91.43) since June 7, 2010 and its weakest quote against the euro (123.89) since May 4, 2010, while the Nikkei-225 closed above 11,000 for the first time since May 5, 2010.  The euro reached its strongest level against the dollar (1.3564) since November 22, 2011. On balance […] More

css.php