Archive for March 20th, 2013

Central Bank Watch

Today’s FOMC Statement

March 20, 2013

Today’s statement from the Federal Open Market Committee repeated the January 30th statement in most respects, including The retention of all existing interest rate and quantitative monetary policy settings. The retention of the same economic data-driven policy guidelines for the future of the federal funds target.  These are thresholds, not targets that would automatically necessitate […] More

Deeper Analysis

Comments on the British Budget and Relevance to Fiscal Discussions in America

March 20, 2013

The British Budget avoided surprises.  It was already well-advertised by the team of Prime Minister David Cameron and his financial sidekick George Osborne that there is to be no backing down from a strategy of austerity in the face of excessive fiscal deficit spending and rising debt, never mind that weak growth (and in turn […] More

Central Bank Watch

FOMC Preview

March 20, 2013

This marks a release time change for the FOMC statement.  These were released previously at about 14:15 local time but from hereon will arrive at 14:00 EDT.  The statement will be followed 30 minutes later by the start of a Bernanke press conference and the unveiling of new macroeconomic forecasts and indications of the frequency […] More

Central Bank Watch

South African Reserve Bank Keeps 5.0% Repo Rate

March 20, 2013

After sifting through a complexity of cross-currents, the Monetary Policy Committee called the current stance “appropriately accommodative.  Note was made in a newly released statement that Growth is weak, and its outlook is fragile. The current account is wider. Difficult labor relations have fed high unemployment. Headline and core inflation rose sharply last month to […] More

Central Bank Watch

No Change Made in Central Bank of Iceland Interest Rate

March 20, 2013

Six increases of the seven-day collateralized lending rate between August 2011 and November 2012 lifted such from 4.25% to 6.0%, but three subsequent meetings have come and gone without a further increase.  A statement released today after the third of those meetings Notes that Icelandic GDP growth slowed more sharply between 2011 and 2012 than […] More

New Overnight Developments Abroad - Daily Update

A Day of Big Events

March 20, 2013

The proposed levy on Cypriot bank deposits was rejected by that country’s parliament by a vote of 36 to zero with 19 abstentions.  Tremendous uncertainty surrounds the scramble for an alternative plan to secure bailout aid and how this development might hurt the post-OMT stabilization of Ezone and global financial markets.  Cyprus constitutes just 0.2% […] More

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