Archive for December 12th, 2013

Central Bank Watch

Central Bank of Peru: No Rate Change this Month

December 12, 2013

Officials did not spring a surprise rate cut in December as they had in November.  The reduction in November was the first cut since February 2010.  In the year from May 2010 through May 2011, the Peruvian reference interest rate was lifted ten times from a low of 1.25% to 4.25% where such remained until […] More

Central Bank Watch

Central Bank of Chile

December 12, 2013

Chile’s monetary policy interest rate had been cut by 25 basis points in both October and November, and an earlier such reduction was made in January 2012.  But after this month’s policy meeting today, officials left the rate at 4.5%.  A released statement observes gradually slowing growth and inflation that now lies marginally below its […] More

Foreign Exchange Insights and Next Week

Don’t Count on Across-the-Board Dollar Strength from Reduced Fed Asset Purchases

December 12, 2013

The Fed has floated several “tapering” balloons since last spring.  The eventuality of lessening quantitative monetary stimulus has been on the table for over seven months, plenty enough to become a fact of investment life.  If the dollar were to have benefited sharply or across the board from this possibility, it would surely have happened.  […] More

Central Bank Watch

Quarterly Review of Swiss Monetary Policy

December 12, 2013

Officials at the Swiss National Bank Decided to retain a zero point and 0.0-0.25% range target on the three-month Swiss libor rate. Retained a 1.2000 franc per euro cap on the exchange rate to be enforced by unlimited intervention and whatever other means prove necessary but noted that intervention hasn’t been needed since September 2012. […] More

Central Bank Watch

Central Bank of the Philippines Leaves Overnight Lending and Borrowing Rates at 5.5% and 3.5%

December 12, 2013

Trust but verify is the message of the latest interest rate policy statement from officials at Bangko Sentral ng Pilipinas.  Each of the past four rate changes was a cut of 25 basis points, and all four were administered in 2012.  The statement calls inflation “manageable” but concedes that price risks are skewed to the […] More

Central Bank Watch

Bank Indonesia’s Main Interest Rate Left Unchanged at 7.5%

December 12, 2013

The 7.5% BI rate is at its highest level since April 2009 when it was en-route from 9.5% prior to December 2008 to 6.5% by August 2009.  The current trend, in contrast, is upward.  From 5.75% maintained previously since February 2012, the BI rate was lifted this year in the face of rupiah depreciation, an […] More

Central Bank Watch

Status Quo at the Bank of Korea

December 12, 2013

South Korea’s central bank base rate has been at 2.5% since cuts of 25 basis points in October 2012 and May of this year, which reversed similar-sized cuts implemented in June and July of 2011.  Although growth has moved above 3.0%, a negative output is projected to continue for “a considerable time.”  Inflation, which is […] More

New Overnight Developments Abroad - Daily Update

Quintet of Central Bank Policy Announcements

December 12, 2013

The Reserve Bank of New Zealand left the 2.5% official cash rate at its record low but served notice that such is headed higher and possibly soon. The Bank of Korea’s 7-day repo rate was kept at 2.5% as well, its level since May.  Inflation is below target. Bank Indonesia did not raise its reference […] More

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