Archive for March 26th, 2015

Central Bank Watch

Bank of Mexico

March 26, 2015

Monetary easing in Mexico since 2009 has happened in two waves.  In each of the first seven months of that year, there was a rate cut, the total of which added up to 375 basis points, cutting the main interest rate to 4.5% from 8.25%.  The second wave of easing began with a 50-basis point […] More

Central Bank Watch

South African Reserve Bank Keeps Policy Stance Paused

March 26, 2015

It doesn’t happen often that a central bank raises projected and above-target inflation for the coming two years yet leaves its policy interest rate unchanged.  Yet that is what the South African Reserve Bank just did.  Inflation is forecast at 4.8% in 2015 (a whole percentage point higher than the previous estimate) and an average […] More

Central Bank Watch

Dovish Czech Monetary Policy Statement

March 26, 2015

the latest policy meeting ended with Czech monetary officials retaining a technical zero interest rate policy attested by the 0.05% two-week repo rate, as well as an asymmetric currency policy to prevent koruna appreciation beyond 27 per euro with automatic unlimited intervention.  A very dovish statement commits to maintaining the currency cap throughout the forecast […] More

Central Bank Watch

Bangko Sentral ng Pilipinas Retains 4.0% Overnight Borrowing Rate

March 26, 2015

The Filipino Monetary Policy Board engineered its first interest rate hike since May 2011 in July 2014 and followed up that move with a second 25-basis point increase to 4.0% in September 2014.  Those increases reversed half the easing done in 2012.  No changes were done in 2013.  A statement released today after the latest […] More

Central Bank Watch

Central Bank of the Republic of China Keeps Policy Unchanged after Quarterly Review

March 26, 2015

From a multi-decade low of 1.25%, monetary authorities raised the central bank discount rate at five consecutive meetings — starting in June 2010, ending in June 2011 and moving the rate each time by 12.5 basis points.  Since the June 2011 tightening, policy has been unchanged. That will continue in the second quarter of 2015.  […] More

New Overnight Developments Abroad - Daily Update

Abundance of Data, Some Central Bank Decisions, and a Saudi-Led Air Attack on Islamic Rebels in Yemen

March 26, 2015

In quickening activity, the dollar lost 0.8% overnight against the Swissie, 0.6% relative to the yen and loonie, 0.5% vis-a-vis the kiwi, 0.4% versus sterling, 0.3% against the euro, and 0.2% versus the Australian dollar.  The yuan slipped 0.1%. After Wednesday’s North American sell-off, stocks in the Pacific Rim and Europe are significantly lower.  Stocks […] More

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