Archive for December 10th, 2014

Central Bank Watch

Back-to-Back Icelandic Interest Rate Cuts

December 10, 2014

Sedlabanki’s Monetary Policy Committee has followed up November’s 25-basis point cut with a greater-than-forecast 50-bp reduction in Iceland’s seven-day lending rate to 5.25%, which is the lowest level in 2-1/2 years.  A released statement justifies the action by lower inflation than forecast and signs that expected inflation has fallen, too.  More cuts are not ruled […] More

New Overnight Developments Abroad - Daily Update

A Few Surprises

December 10, 2014

Chinese share prices rebounded 3.7% as CPI inflation falls to lowest level (1.4%) since November 2009.  Producer prices meanwhile posted their greatest on-year decline (2.7% after 2.2%) since May 2013, further encouraging investors to speculate about another central bank rate cut in the world’s second biggest economy. The 10-year Japanese JGB yield dipped under the […] More