Archive for March 13th, 2014

Central Bank Watch

Peruvian Central Bank Reference Interest Rate Kept at 4.0%

March 13, 2014

There was a 25-basis point reduction of Peru’s central bank policy interest rate in November to 4.0%, the first change in 47 months, but it will continue to stay at that level.  Supply-side factors, as in Chile, lifted Peruvian CPI inflation during February, but that shock is projected to fade.  Officials expect inflation to settle […] More

Central Bank Watch

Another Chilean Interest Rate Cut Despite Higher Inflation

March 13, 2014

The Chilean monetary policy rate was sliced by 25 basis points to 4.0%.  Similar-sized reductions were made last month, in November and October 2013, and January of 2012.  A statement from the central bank Board discusses both a loss of economic strength recently and rise of inflation in February, the latter caused by peso depreciation […] More

Foreign Exchange Insights and Next Week

Euro Badlands

March 13, 2014

The euro area economy needs a strong and strengthening euro like a hole in the head.  Three straight quarters of positive but sluggish expansion has lifted GDP for the whole region to a mere 0.5% above its year-earlier level, and the shortfall from the pre-Great Recession peak is even greater.  Germany’s on-year growth of 1.4% […] More

Central Bank Watch

Indonesian BI Interest Rate Left Unchanged at 7.5%

March 13, 2014

A statement released after the Bank Indonesia monthly Board meeting cites positive results — falling inflation, more balanced growth, a narrower current account deficit, and rupiah appreciation that has reduced last year’s steep fall in the exchange rate’s value — from a string of interest rate hikes but promises continuing monetary policy vigilance going forward.  […] More

Central Bank Watch

Bank of Korea Keeps 2.5% Seven-Day Repo Rate

March 13, 2014

No interest rate change was made at the last monthly policy meeting presided over by the outgoing Bank of Korea governor.  The benchmark rate has been 2.5% since a 25-basis point cut in May, which was the third such move since July 2012.  Previously the rate was raised from 2.0% before June 2010 to 3.25% […] More

New Overnight Developments Abroad - Daily Update

New Zealand Interest Rate Hike and Soft Chinese Data

March 13, 2014

New Zealand became the first advanced economy to lift its benchmark interest rate.  The central bank, RBNZ, raised the Official Cash Rate to 2.75% from 2.5% and signaled that more increases will be forthcoming over the coming two years.  The action sent the kiwi to a new trade-weighted high. Chinese industrial production growth in January-February […] More

css.php