Archive for May 16th, 2013

Central Bank Watch

National Bank of Serbia

May 16, 2013

Serbian monetary officials on May 14 cut the one-week repo rate by 50 basis points to 11.25%.  This reduction reverses policy gears, following a string of eight hikes between June 2012 and February 2013 totaling 225 bps.  The backdrop for those earlier increases was a sharp acceleration of inflation from less than 3% to more […] More

Central Bank Watch

Central Bank of the Republic of Turkey: Different Measures for Different Needs

May 16, 2013

Amid slack economic growth and inasmuch as CPI inflation had declined to 6.1% in April from 7.3% in March and 7.0% in February, Turkish monetary officials reduced the one-week repo rate to 4.5% from 5.0%, which matches the cut in April and exceeds the 25-bp move that analysts were anticipating.  Because officials also fear that […] More

Central Bank Watch

Bank of Russia Left Refinancing Rate at 8.25%

May 16, 2013

Russia’s main monetary policy signal has been at 8.25% since the middle of September 2012 and will continue at that level.  Last September saw the rate increase by 25 basis points, reversing a 25-bp cut made late in December 2011.  Government officials had urged the Bank of Russia’s Board of Directors to sanction an ease […] More

Foreign Exchange Insights and Next Week

Strengthening Aura Surrounding the Dollar

May 16, 2013

One hears increasingly the opinion that the dollar may be in a multi-year period of strength.  Optimism rests on several pillars. One is the broadness of the dollar’s recent advance.  Across-the board appreciation has transpired since this time last Thursday, and important barriers have been pushed aside during the statement week such as 100 yen, […] More

New Overnight Developments Abroad - Daily Update

Another Tumble in the Price of Gold

May 16, 2013

Commodities continue to lose favor.  Gold dropped 1.7% overnight to $1372.70 per ounce.  Oil fell by 0.9% to $93.43 per barrel. The commodity-sensitive currencies of Australia and New Zealand lost 0.9% and 1.0% against the U.S. currency overnight, which also advanced by 0.3% against the yen and loonie, 0.2% versus the euro, Swissie and sterling […] More

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