Archive for December 11th, 2013

Central Bank Watch

Reserve Bank of New Zealand Policy Decision: No Rate Change

December 11, 2013

New Zealand’s official cash rate has been at 2.5% since a 50-basis point cut in March 2011 reversed hikes of 25-bp each in June and July of 2010 and returned such to its cyclical low.  A statement from Governor Wheeler projects upwardly trending inflation from 1.4% in the year to 3Q13 and retains a policy bias […] More

Deeper Analysis

U.S. Growth and Inflation Under Different Fed Chairmanships

December 11, 2013

Ben Bernanke’s eight-year stint as chairman of the Federal Reserve ends six weeks from today.  His immediate predecessors were Alan Greenspan for 18 years and 5 months from August 1987 through January 2006 and Paul Volcker for eight years between August 1979 and August 1987.  The infamous inflation buildup had deep roots going back to […] More

Central Bank Watch

Central Bank of Iceland

December 11, 2013

Analysts didn’t get the 25-basis point central bank rate hike that they were anticipating, but the accompanying statement from Iceland’s Monetary Policy Committee underscored that today’s delayed action is only a delay and not a policy guidance rethink.  The statement observes faster growth than assumed previously — such averaged 3.1% annualized in January-September — and […] More

New Overnight Developments Abroad - Daily Update

Fed Taper Speculation

December 11, 2013

The first reduction of quantitative easing appears more likely because Democrat and Republican congressional leaders reached a 2-year tentative budget deal that President Obama is said to support.  The legislation still must get approved by the full senate and house of representatives and, if so done, would avert a government shutdown next month.  The risk […] More

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