Archive for September 3rd, 2015

Deeper Analysis

Less U.S.-Advantageous PMI Spreads in August

September 3, 2015

In July when Grexit fever was at a high burn, the sum of the U.S.-minus-Eurozone purchasing manager survey differential had jumped to 6.6 points from 2.6 points the month before, but 80% of that increase was reversed in August.  It was reported on Monday that the U.S. manufacturing PMI declined 1.6 points last month while […] More

Central Bank Watch

Swedish Riksbank: No Policy Change this Time but Will Loosen Further If Inflation Tracks Lower than Assumed

September 3, 2015

Sweden has a very expansionary monetary policy the embodies a negative interest rate, bond buying and the threat of currency intervention.  All this is intended to raise inflation closer to 2% next year.  At the prior meeting on July 2, the repo rate was cut by 10 basis points, and a bond buying program totaling […] More

Central Bank Watch

A Dovish ECB Message

September 3, 2015

Today’s Governing Council statement Left the refinancing, deposit and marginal lending rates at 0.05%, -0.20% and 0.30%, their levels since September 2014. Revised the projected future path of GDP growth and CPI inflation slightly downward because of a slowdown in emerging market economies and the recent drop in oil prices. Modified quantitative stimulus (QE) in […] More

New Overnight Developments Abroad - Daily Update

Heavy Flow of Information Continues

September 3, 2015

The Bank of Brazil ended a 7-meeting streak of rate tightening, as risks of deepening recession outweigh danger of vicious cycle of currency depreciation and rising inflation.  The Selic Rate was left at 14.25%, its level after 325 basis points of tightening between October 2014 and July 2015. The Swedish Riksbank likewise left monetary policy […] More

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