Archive for October 24th, 2013

Foreign Exchange Insights and Next Week

Trick or Treat

October 24, 2013

This is the month when people are asked to choose between forking over a treat or suffering the consequences of a practical joke.  The fiasco of a U.S. debt ceiling debate earlier this month ended thankfully without a government default but with a considerable dose of national disgrace. Knock on wood, but the treat during […] More

Central Bank Watch

Swedish Riksbank: Steady as She Goes

October 24, 2013

Four repo rate cuts were implemented between December 2011 and December 2012 but not since then.  A statement released by the executive board of the Riksbank reaffirms that “the repo rate is not expected to be raised until the end of 2014.”  The “low” inflation rate is continuing, and economic improvement, especially in the labor […] More

Central Bank Watch

Norges Bank Maintains 1.5% Policy Interest Rate

October 24, 2013

For a tenth straight time, Norway’s central bank executive board members left their policy interest rate at 1.5%.  No change had been considered, and the policy outlook still considers a rate change unlikely before 3Q14.  A statement summarizes developments since it met on September 19 as follows: “Inflation in September was lower than expected, but […] More

Central Bank Watch

Filipino Interest Rates Left Unchanged

October 24, 2013

The overnight lending and borrowing rates were last changed a year ago.  Officials at Bangko Sentral ng Pilipinas implemented cuts of 25 basis points each in January, April, July and October 2012.  The lending and borrowing rate levels will remain at 5.5% and 3.5%, respectively, officials announced after today’s policy meeting had concluded.  A statement […] More

Deeper Analysis

35th Anniversary of Jimmy Carter’s Anti-Inflation Speech to the American People

October 24, 2013

The background to Jimmy Carter’s infamous speech on inflation, delivered October 24, 1978, was a four-percentage point rise in U.S. CPI inflation from 4.9% in December 1976, the month before his inauguration, to 8.9% in October 1978.  After asking rhetorically how to reverse inflation, the former president admitted, “I do not have all the answers. […] More

New Overnight Developments Abroad - Daily Update

Several Things to Focus Upon

October 24, 2013

The dollar is generally steady, stocks are mixed, and there have been some data surprises. The dollar is unchanged against the Australian dollar and the yen, up 0.3% against the kiwi and 0.1% relative to the loonie, but down 0.2% against the euro and 0.1% vis-a-vis the yuan, Swiss franc and sterling. Share prices rose […] More

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