Archive for June 11th, 2015

Central Bank Watch

Central Reserve Bank of Peru

June 11, 2015

Peru’s central bank interest rate, 3.25% since a 25-basis point cut last January, was kept unchanged at the June monthly policy meeting.  Earlier cuts of that size were implemented in November 2013 and twice during the third quarter of last year.  Officials can’t afford to cut the interest rate further at this time because of […] More

Central Bank Watch

Central Bank of Chile: No Rate Change

June 11, 2015

The monetary policy interest rate, which has been 3.0% since a 25-basis point cut last October, will remain at that level, according to a released statement following this month’s meeting.  Inflation is projected to remain above target “for some months” but eventually fall to the 3.0% target.  Medium-term inflation expectations are at the target, wage […] More

Central Bank Watch

Reserve Bank of New Zealand

June 11, 2015

In an unexpected move, New Zealand’s Official Cash Rate was cut for the first time since March 2011.  The drop to 3.25% from 3.5% left the OCR still 75 basis points above the 2.50% low over the two years from March 2011 through March 2013, and an accompanying statement failed to rule out additional monetary […] More

Central Bank Watch

Bank of Korea Cuts Repo Rate for Second Time this Year

June 11, 2015

The MERS threat and global challenges such as “changes in the monetary policies of major countries, the weakening of economic growth in emerging market countries, and uncertainties over the restructuring of Greek debt” persuaded Korean monetary authorities to cut the seven-day repo rate by 25 basis points to 1.50% according to an accompanying statement by […] More

Central Bank Watch

National Bank of Serbia Reduces Policy Rate by 50 Basis Points for Fifth Time in Seven Months

June 11, 2015

As recently as end-April 2013, Serbia’s main policy interest rate stood at 11.75%, but now it becomes 6.0% after the latest cut of 50 basis points.  A statement from the central bank’s executive board observes that inflation remains depressed below the target floor by external deflationary forces plus a tighter fiscal policy.  The hope and […] More

New Overnight Developments Abroad - Daily Update

Several Central Bank Rate Cuts and Data Surprises Lift Dollar

June 11, 2015

The U.S. dollar leaped 2.8% against its New Zealand counterpart and also rose overnight by 0.9% against the yen, 0.6% relative to the euro, 0.4% versus the loonie, Aussie dollar and sterling, and 0.3% vis-a-vis the Swiss franc.  Chinese officials held the yuan steady. The Reserve Bank of New Zealand’s Official Cash Rate was sliced […] More

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