Archive for July 29th, 2015

Central Bank Watch

Central Bank of Brazil Tightens Monetary Policy Again in Face of Accelerating Inflation and Contracting GDP

July 29, 2015

Copom, Brazil’s monetary policy committee, started raising its short-term Selic interest rate from a base of 7.25% in April 2013.  Inflation then of 6.6% was above target and threatening to send inflation expectations upward.  Over the ensuing year to April 2014, the Selic rate was increased by 3.75% to 11%, and policy tightening was put […] More

Deeper Analysis

FOMC Policy Statement a Very Close Facsimile of the Prior One

July 29, 2015

Officials made even fewer modifications in the wording than the scant amount I was expecting, and the only changes came in the first paragraph describing economic conditions.  The labor market — both job growth and unemployment — were upgraded, but the overall assessment of moderately expanding activity, sub-target inflation, low market-based measures of inflation compensation, […] More

Central Bank Watch

FOMC Preview

July 29, 2015

The last FOMC meeting on June 16-17 upgraded growth on improved household consumption, spoke of continuing progress on the mandates to maximize employment and secure a 2.0% inflation target, but decided that more evidence of sustained growth and higher inflation are needed before beginning to normalize the federal funds rate.  Energy and the dollar, two […] More

New Overnight Developments Abroad - Daily Update

Dollar Marking Time Ahead of Today’s FOMC Announcement

July 29, 2015

The FOMC policy statement will be released at 18:00 GMT (14:00 EDT).  There is no press conference or release of updated forecasts.  No policy change is expected, but investors are unsure if the statement will provide clarifying information regarding the likelihood of a rate hike at September’s meeting.  I look for vagueness on that regard, […] More

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