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
Foreign Exchange Insights and Next Week
A Change is Gonna Come
March 25, 2015
World financial markets have lately been characterized by oscillating share prices, historically low long-term interest rates, a near record pace of dollar appreciation, and unthinkably cheap oil costs. Forward-looking investors are trying to discern how these distinct themes will interact, which of the properties are most sustainable, and which seem less assured to continue because […] More
New Overnight Developments Abroad - Daily Update
German IFO Figures Better Than Expected inn Otherwise Uneventful Overnight Session
March 25, 2015
The dollar moved 0.4% lower against the euro overnight and also lost 0.2% versus sterling and 0.1% relative to the yen, kiwi, Aussie dollar and Swiss franc. The U.S. currency is unchanged against the loonie and has recouped 0.1% vis-a-vis the yuan. Stocks in the Pacific Rim fell 0.8% in Indonesia and China, 0.7% in […] More
Central Bank Watch
Hungarian Monetary Policy Eased
March 24, 2015
Magyar Nemzeti Bank’s Base Rate was cut by 15 basis points to 1.95%. This was the first reduction in eight months, and officials left the door open for the possibility of even more reductions ahead despite a baseline scenario calling for robust growth, a gradually diminishing output gap, and consumer price inflation convergence upon an […] More
New Overnight Developments Abroad - Daily Update
Weaker Pound and Dollar
March 24, 2015
The dollar advanced 0.4% relative to sterling but is otherwise down by 0.8% against the Swiss franc, 0.3% versus the yen and loonie, 0.2% vis-a-vis the euro and Australian dollar and 0.1% against the kiwi and yuan. Preliminary purchasing manager surveys for March, based upon roughly 85% of the information in the final tallies, were […] More
Central Bank Watch
Central Bank of the Republic of Colombia Kept 4.5% Main Interest Rate
March 23, 2015
Late last Friday, as it had done at the six previous monetary policy meetings, the Board of Directors left its interest rate benchmark at 4.5%. The rate had previously been raised by 25 basis points at each of five straight meetings between April 2014 and August 2014. On-year CPI inflation of 4.36% exceeded target and […] More
Central Bank Watch
Bank of Israel Didn’t Ease Further
March 23, 2015
Monetary officials implemented three 25-basis point cuts each in Israel’s Bank Rate in 2011, 2012, 2013, and 2014 and an additional 15-basis point reduction at the previous month’s meeting in February. Opinions were mixed about what action might be taken after the March meeting, ranging from adoption of a negative interest rate as several other […] More
