Archive for June 13th, 2014

Foreign Exchange Insights and Next Week

Next Week

June 13, 2014

Central Bank meetings are being held next week in Norway, Switzerland, Thailand, the Philippines, Russia and, most importantly, by the Federal Reserve, which will unveil new macroeconomic and individual interest rate forecasts.  There will be a press conference Wednesday led by Chair Janet Yellen.  Ironically, her predecessor Ben Bernanke also speaks that day in Zurich.  […] More

Central Bank Watch

Central Bank of Chile Leaves Key Interest Rate Unchanged as Expected

June 13, 2014

Chile’s central bank rate is currently 4.0%, same as Peru’s, even though Chilean inflation of 4.7% is 1.1 percentage points above the Peruvian rate.  Also, whereas Peru’s rate has been reduced just once in the past four-plus years (by 25 basis points last November), Chile’s monetary policy rate was sliced five times by that increment […] More

Central Bank Watch

Central Reserve Bank of Peru: Again No Rate Change

June 13, 2014

The last change in Peru’s monetary policy reference rate was a cut of 25 basis points last November to 4.0%, and that was the first reduction in over four years.  For the seventh straight subsequent meeting and as analysts were expecting, policy was left unchanged after the June Board meeting.  A released statement attributes above-target […] More

Central Bank Watch

Bank of Japan Holds ‘Em

June 13, 2014

The Bank of Japan Board released a statement after its June meeting that reaffirmed existing policy and reads nearly identically to the prior meeting’s statement released May 21.  Current policy settings were first announced in early April 2013 as the first pillar among three that form Abenomics.  Stimulative fiscal policy is the second pillar, and […] More

New Overnight Developments Abroad - Daily Update

Scent of Monetary Restraint Coming to the U.K.

June 13, 2014

The annual Mansion House Speech from Bank of England Governor Mark Carney suggested that the first hike of the central bank interest rate may happen sooner than markets are assuming and possibly before year-end.  Actions against house price inflation appear imminent but will be introduced in a measured way. Three other central banks overnight left […] More

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