Central Bank Watch
Reserve Bank of India Implements the Third Interest Rate Hike since September 20
January 29, 2014
Note to Readers: This blog entry was sent originally on January 28 but inexplicably got lost in cyberspace. Hopefully it will publish now. All three tightenings by the RBI including today’s and ones in September and October were by 25 basis points. The repo and reverse repo rate levels become 8.0% and 7.0%, respectively, while […] More
New Overnight Developments Abroad - Daily Update
Sharp Response from Turkey’s Central Bank Lifts Lira
January 29, 2014
After a late-night emergency monetary policy meeting in Turkey, the overnight borrowing and lending rates were raised by 450 and 425 basis points, respectively, to 8.0% and 12.0%, while the one-week repo rate increased by 550 bps to 10.0%. These changes far eclipsed even the boldest forecasts and initially at least boosted the Turkish lira […] More
Central Bank Watch
Turkish Central Bank: Bold Move or Hail Mary Pass
January 28, 2014
The rift between the government of Prime Minister Ergodan and the central bank just got a lot wider. Ergodan could not have been more heavy-handed in pressuring the central bank not to hike interest rates, which it did not do at this month’s scheduled meeting on January 21. That inaction and a deepening government scandal […] More
New Overnight Developments Abroad - Daily Update
Loads of Developments this Tuesday
January 28, 2014
The news from Europe, including fourth-quarter British GDP, higher-than-anticipated consumer confidence figures reported in both France and Italy, and Euroland’s index of leading economic indicators, has been upbeat. Money market rates in China rose in spite of another big liquidity injection by the central bank. China reported a sharp slowdown in the growth of corporate […] More
Central Bank Watch
Bank of Israel Interest Rate Left Unchanged at 1.0% after Monthly Monetary Policy Committee Meeting
January 27, 2014
As in October, November and December, Bank of Israel authorities decided not to change policy. Previously, cuts had been made in September and November of 2011, January, June, October and December of 2012, twice in May 2013 and, most recently, at the late September meeting. Each of those nine cuts were a quarter percentage point […] More
New Overnight Developments Abroad - Daily Update
Continuing Focus on Emerging Market Difficulties
January 27, 2014
Asian share prices were battered additionally at the start of the new week. Stocks fell 2.5% in Japan, 2.6% in Indonesia, 2.1% in Hong Kong, 2.0% in Thailand and India, 1.8% in the Philippines, 1.6% in South Korea and Taiwan, 1.3% in China and Malaysia, and 1.1% in Singapore. While the British Ftse followed suit […] More
Foreign Exchange Insights and Next Week
Next Week
January 24, 2014
Some of the central bank policy meetings next week are taking place at the Fed, Reserve Bank of India, Reserve Bank of New Zealand, Bank of Mexico, Bank Negara Malaysia, Bank of Israel, and South African Reserve Bank. Minutes from the Bank of Japan’s December 19-20 meeting will be published. Ezone finance ministers will be […] More
New Overnight Developments Abroad - Daily Update
Collateral Damage from Prospect of More Fed Tapering
January 24, 2014
Share prices have slumped 3.4% in Spain, 1.9% (and 304 points) in Japan, 1.8% in Italy, 1.4% in France, 1.3% in Hong Kong and Indonesia, 1.1% in India and Germany, 1.0% in Britain, 0.8% in New Zealand and Singapore, and 0.4% in Australia. Ten-year sovereign debt yields are down 8 basis points in Britain, 3 […] More
Foreign Exchange Insights and Next Week
Currency Reflections on a Wintry Day
January 23, 2014
Optimism about U.S. growth prospects continues to mount, and many currency watchers have been awaiting just such a sign as the needed catalyst for a significant rise in the dollar against its main rival, the euro. Canadian monetary officials just raised their projected 2014 U.S. growth rate by a half percentage point to 3.0%. That […] More
New Overnight Developments Abroad - Daily Update
Weaker Canadian, Australian and U.S. Dollars
January 23, 2014
The U.S. dollar rose overnight by 1.0% against the Aussie currency and 0.6% versus the loonie but is down 0.9% relative to the Swiss franc, 0.3% against the yen and euro and 0.1 vis-a-vis sterling. The kiwi dipped 0.1%, and the yuan is steady. Preliminary euro area purchasing manager January survey results are somewhat better […] More
