Central Bank Watch
No Change Made to Hungary’s Central Bank Base Rate
July 26, 2016
Officials at Magyar Nemzeti Bank have used the opportunity of persistent, extensive unused capacity and a lack of pricing pressure to loosen monetary progressively. Their main interest rate was reduced 490 basis points to 2.1% during the two years ending July 2014. Five additional 15-basis point cuts were done last year at successive meetings from March through […] More
New Overnight Developments Abroad - Daily Update
Yen, Aussie Dollar and Kiwi Strengthen
July 26, 2016
The dollar fell overnight by 1.0% against the yen, 0.8% relative to the kiwi and 0.7% vis-a-vis the Aussie dollar, but the U.S. currency is little changed against other major currencies. The Japanese Nikkei lost 1.4% on signs from Finance Minister Aso that less fiscal stimulus is planned than investors were assuming. The Bank of […] More
Central Bank Watch
Bank of Israel Keeps Key Interest Rate at 0.10%
July 25, 2016
Almost a year and a half have elapsed since the last Israeli interest rate change, which was a 15-basis point cut in February 2015. The previous four calendar years had seen the rate reduced from 3.25% to 0.25%. A statement released by Bank of Israel policymakers after this month’s review defended the appropriateness of the […] More
New Overnight Developments Abroad - Daily Update
Steady Dollar
July 25, 2016
Group of Twenty finance ministers and central bankers, who met over the weekend in Chengdu, China, released a communique that broke no new ground in currency policy: We reiterate that excess volatility and disorderly movements in exchange rates can have adverse implications for economic and financial stability. We will consult closely on exchange markets. We […] More
Foreign Exchange Insights and Next Week
Next Week
July 22, 2016
Special Events: Meeting of G20 central bank leaders and finance ministers on July 23-24. U.S. Democratic Party National Convention on Monday-Thursday. Central Banks: Monetary policy meetings in the U.S., Japan, Russia, Ukraine, Hungary, Israel and The Philippines. Reserve Bank of New Zealand Governor Wheeler and Bank of Japan Governor Kuroda speak publicly. No press conference […] More
New Overnight Developments Abroad - Daily Update
Markets React to U.K. July PMI Figures but Hardly to Trump’s Speech
July 22, 2016
Britain’s composite purchasing managers index swung from 52.4 in June to an 87-month low of 47.7 in July. Service sector activity (49.1) contracted at the fastest pace in 41 months, while services did even worse, falling at the most rapid rate in 88 months with a reading of 47.4. Sterling’s post-Brexit slump sent input prices […] More
Central Bank Watch
South African Reserve Bank: No Change in Policy Interest Rate
July 21, 2016
Like the ECB Governing Council and Bank Indonesia’s Board of Governors, each of which also held policy meetings today, South Africa’s Monetary Policy Committee chose not to initiate a change at this time. Whereas the other two central banks might arguably eased, the risk in the case of South Africa was on the upside. According […] More
Central Bank Watch
ECB Keeps Things the Same
July 21, 2016
Concluding that the immediate disruption to eurozone financial markets from the British Brexit referendum had been short-lived in part because of policy supports to make the banking system more resilient, the ECB Governing Council left interest rates and non-standard policy instruments unchanged and released a statement explaining the latest thinking on the economic outlook. Officials […] More
Central Bank Watch
Bank Indonesia’s Policy Rates Left the Same
July 21, 2016
The main BI interest rate had be cut in four steps, most recently in June, from 7.5% to 6.5% earlier this year, and a statement released after this month’s decision not to ease further now suggests that more rate cuts lie ahead. As of next month, the operative policy rate will switch to the seven-day […] More
New Overnight Developments Abroad - Daily Update
People and U.S. Data Making News
July 21, 2016
At the Republican National Convention in Cleveland, Texas Senator Ted Cruz shocked the crowd by not endorsing Donald Trump for president and was booed for his disloyalty. Indiana Governor Mike Pence gave a more effective VP nomination speech than had been expected, but the broad picture is one of tensions within the GOP. Donald Trump speaks […] More
