Archive for March 14th, 2013

Foreign Exchange Insights and Next Week

Shouldn’t the Dollar Be Appreciating More Sharply?

March 14, 2013

As post-financial crisis dust continues to settle, a number of U.S. currency value determinants are better than before, if not absolutely, then in relative terms. Start with the current account.  Before the crisis, such widened progressively from 1.5% of GDP in 1993-96 to 2.9% of GDP in 1997-2000, 4.6% of GDP in 20013-04 and and […] More

Central Bank Watch

Swiss National Bank Retains Anti-Deflationary Policy Settings and Cuts Projected Inflation

March 14, 2013

The current ultra-accommodative Swiss monetary policy stance was launched in the summer of 2011.  The overnight target for 3-month Libor had previously been cut from a range of 2.25-3.25% between September 2007 and early October 2008 to a range of 0.0-0.75% by March 2009.  Officials had thereafter engaged unsuccessfully in intervention to cap franc strength […] More

Central Bank Watch

Filipino Special Deposit Account Rate Cut

March 14, 2013

Officials at Bankgo Sentral ng Pilipinas reduced the main overnight deposit rate, a.k.a. the reverse repo, by 25 basis points each in January, March, July and October of 2012 to its current level of 3.5%.  It’s remained at 3.5% ever since including after today’s policy meeting.  The overnight repo rate of 5.5% was also retained.  […] More

Central Bank Watch

Norges Bank Signals Unchanged Monetary Policy for another Year

March 14, 2013

“The analyses suggest that the key policy rate be kept low longer than previously anticipated. The first increase in the key policy rate is now projected to take place in spring 2014,” says Governor Øystein Olsen. The central bank’s policy interest rate has been at 1.5% since a 25-basis point rate cut March 2012, and […] More

Central Bank Watch

Bank of Korea Holds Policy Interest Rate at 2.75%

March 14, 2013

Defying expectations of a cut, monetary officials did not change their seven-day repo rate.  Such was the fifth consecutive meeting without a cut, and as in February, the decision was not a unanimous one.  After five 25-bp rate hikes between June 2010 and June 2011, the key rate was cut by 25 basis points in […] More

New Overnight Developments Abroad - Daily Update

A Hopeful Investor Mood

March 14, 2013

European equities rose to their best levels since June 2008, emboldened ahead of a two-day summit of EU leaders in Brussels and by evidence of U.S. economic resilience in the face of fiscal spending cuts. There have been a slew of central bank interest rate announcements. The Reserve Bank of New Zealand retained a record […] More

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