Central Bank Watch
Swiss National Bank: No Policy Changes
September 19, 2013
SNB officials concluded their quarterly monetary policy review with no change in the stance and a statement that Acknowledges lessening global financial market stress, Retains an interest rate policy of virtually zero within a 3-month libor target range of 0-0.25%. Pledges to do whatever it takes in the way of intervention and other steps to […] More
Central Bank Watch
Norwegian Monetary Policy Unchanged
September 19, 2013
The analyses imply a key policy rate at today’s level in the period to summer 2014, followed by a gradual increase to a more normal level,” says Deputy Governor Jan F. Qvigstad. This was the ninth straight meeting in which the policy rate was left at 1.5%. The last changes were cuts of 50 basis […] More
New Overnight Developments Abroad - Daily Update
The Morning After Delivers More Central Bank News
September 19, 2013
In the wake of the Federal Reserve’s decision not to cut quantitative stimulus just yet, the euro soared to a 7-month high of $1.3569, gold has climbed 4.4% to $1365.5 per ounce, other commodities like WTI crude oil (+0.6% to $108.76) are also higher, share prices are higher in Europe and Asia (especially where selling […] More
Central Bank Watch
FOMC Surprise
September 18, 2013
It’s a nice precedent to see that the Federal Open Market Committee doesn’t feel boxed in by the market’s interpretation of previous Fed cues regarding what it may or may not decide at a forthcoming policy meeting. In fact, markets did not get a nuance that the FOMC has always maintained since forward guidance was […] More
Central Bank Watch
FOMC Preview
September 18, 2013
Federal Reserve policymakers have preparing markets to expect a reduction this month in the size of the central bank’s monthly $85 billion of long-term asset purchases, also known as quantitative stimulus (QE). Chairman Bernanke initially floated the idea, contingent upon continuing improvement in the U.S. economy. Although markets at first thought the monthly quota might […] More
New Overnight Developments Abroad - Daily Update
Bank of England Grabs Some Attention while Investors Await FOMC Decision
September 18, 2013
At 18:00 GMT, the FOMC will release new projections and reveal its decision on tapering asset purchases. Chairman Bernanke’s press conference begins at 18:30 GMT (14:15 EDT). Analysts have scaled back forecasts of the QE reduction to $10 billion per month, but market whisper numbers of a cut of just $5 billion have lately circulated. […] More
Central Bank Watch
Central Bank of the Republic of Turkey: No Further Interest Rate Changes in September
September 17, 2013
As analysts suspected, Turkey’s Monetary Policy Committee agreed to leave the overnight lending rate at 7.75%, having hiked such by 75 basis points in July and a further 50 bps in August. The one-week repo rates and overnight borrowing rates of 4.5% and 3.5% were also not changed. A comparatively brief released statement promised to […] More
Central Bank Watch
Central Bank of Sri Lanka Keeps Stance Unchanged
September 17, 2013
The reverse repo and repo rates were left respectively at 9.0% and 7.0% where they’ve been since reductions of 25 basis points last December followed by cuts of 50 bps in May 2013. A statement from bank officials again called the present stance appropriate and welcomed signs that lower short-term interest rates are spreading more […] More
New Overnight Developments Abroad - Daily Update
Federal Reserve in the Spotlight
September 17, 2013
Even as the Federal Open Market Committee meets today for the first of a critical two-day policy meeting, a story has emerged that Janet Yellen, the present vice-chairperson, is now the front-running candidate to succeed Ben Bernanke as chair-person. Bernanke’s second 4-year term ends in late January. In other central bank news, Minutes from the […] More
Deeper Analysis
21st Anniversary of Black Wednesday
September 16, 2013
Sterling abandoned the Exchange Rate Mechanism (ERM) 21 years ago this day. The ERM served as training wheels for currencies aspiring to join the European Currency Mechanism. The British pound was a late comer to the ERM, joining in October 1990. Former Prime Minister Margaret Thatcher had long opposed the action. The ERM had been […] More
