Archive for May 2015

Central Bank Watch

Bank of Israel Keeps Existing Policy Stance

May 25, 2015

In a statement affirming the appropriateness of Israel’s 3-month old 0.10% central bank interest rate, officials noted the current sub-zero rate of CPI inflation, 2.1 percentage points below the inflation target range of 1-3%, continuing moderate growth in real GDP, and shekel appreciation since the prior month’s meeting amounting to 3% against the dollar, 1.3% […] More

New Overnight Developments Abroad - Daily Update

Multiple Holidays Dampening Market Activity

May 25, 2015

British markets are closed today for the spring bank holiday. U.S. markets are closed for Memorial Day. A number of northern European markets including France, Germany, Denmark, Norway, Iceland, Austria, The Netherlands, and Belgium are shut too in observance of Whit Monday. The dollar traded under 1.10 per euro to a low of $1.0959 and […] More

Foreign Exchange Insights and Next Week

Next Week

May 22, 2015

Monday Holidays:  U.S. and British markets will be shut May 25 for Memorial Day and a spring bank holiday, respectively, while several Continental European countries observe Whit Monday. Central Banks:  Policy meetings are scheduled in Canada, Hungary and Israel.  The Bank of Japan releases minutes of a prior meeting, and ECB President Draghi and BOJ […] More

Central Bank Watch

South African Reserve Bank

May 22, 2015

In a new statement from South African monetary authorities, officials express mounting doubts that the 5.75% repo rate is sufficiently restrictive to keep inflation in the medium term below the 6% target ceiling. Although the upward revision of the inflation forecast was relatively small, the persistence of medium term inflation at elevated levels and the […] More

Central Bank Watch

No Change in Bank of Japan Policy But Upgraded Assessment of Economy

May 22, 2015

BOJ policymakers took a step away from their easing bias by upgrading their view of Japan’s economic outlook.  The forecast for some time has predicted continuing moderate recovery, but a statement released after four hours 53 minutes of deliberations over two days by the Policy Board expressed greater confidence of the baseline scenario, and Governor […] More

New Overnight Developments Abroad - Daily Update

Memorial Day Weekend Finds Spotlight on BOJ, China and Germany

May 22, 2015

U.S. markets will be closing early ahead of the Memorial Day Weekend. The dollar strengthened overnight by 0.8% against the euro and Aussie dollar, 0.7% relative to the Swiss franc and loonie, and 0.2% vis-a-vis the yen and sterling.  The kiwi is unchanged. West Texas Intermediate oil fell back under the $60 threshold to $59.82 […] More

New Overnight Developments Abroad - Daily Update

After FOMC Minutes, a Bunch of New Data Releases and ECB Minutes

May 21, 2015

FOMC minutes released late yesterday suggest that a June rate hike is possible but improbable. Today’s release of ECB Governing Council minutes, known formally as the “ECB Account,” reflect determination to complete the entire program of quantitative easing scheduled to run through September 2016, satisfaction with how QE is working thus far, but continuing frustration […] More

Central Bank Watch

Turkish Monetary Officials Reluctant to Cut Rates Amid Heightened Risks

May 20, 2015

Monetary Policy Committee members chose to leave the central bank’s one-week repo rate at 7.5%, the overnight lending rate at 10.75%, and the overnight borrowing rate at 7.25%.  Consumer prices rose 7.9% in the year to April.  A statement released after today’s policy meeting sets a more cautious tone than government officials seek: Recently elevated […] More

eurozone construction output

Japanese GDP and FOMC Minutes

May 20, 2015

Japanese first-quarter real GDP growth of 2.4% at an annualized rate (SAAR) was the second increase in a row, the best quarter since 1Q14, and faster than street expectations of 1.5%.  Growth last quarter was powered by stronger-than-predicted personal consumption (1.4%) and inventory building that augmented GDP growth by 2.0 percentage points (ppts).  Net exports […] More

Central Bank Watch

Bank Indonesia Retains BI Rate of 7.5%

May 19, 2015

The May meeting of the Board of Governor concluded with today’s released statement keeping Indonesia’s 7.5% main reference interest rate and laying policy objectives: The BI Board of Governors decided on 19th May 2015 to hold the BI Rate at 7.50%, while setting the Deposit Facility and Lending Facility rates at 5.50% and 8.00% respectively. […] More

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