Archive for September 2016

Central Bank Watch

Bank of Israel

September 26, 2016

Israel’s central bank policy rate was left unchanged as expected at 0.1% at this month’s policy meeting. It’s been at 0.1% since a 15-basis point reduction in February 2015, and markets do not anticipate any rise over the coming year. Twelve earlier cuts of 25 basis ¬†points – three each per hear in 2011, 2012, […] More

New Overnight Developments Abroad - Daily Update

Stocks Pounded Overnight but Dollar Slightly Lower

September 26, 2016

Investors are worried that there’s no escape from the low interest rate global environment, that such will corrode the health of the financial sector, that Donald Trump will be America’s 45th president, and that oil producers will lack the cohesiveness to support energy prices. ¬†The first Trump-Clinton debate starts at 09:00 EDT tonight. Led by […] More

Foreign Exchange Insights and Next Week

The Dollar Around U.S. Presidential Elections

September 24, 2016

Currency markets should prepare for a bit of turbulence. It has not been unusual to experience elevated dollar movement against the euro and yen in the final calendar quarter of U.S. presidential election years. The average dollar change against the euro between end-September and end-year in the past four election years was 4.9% but would […] More

Foreign Exchange Insights and Next Week

Next Week

September 23, 2016

Central Banks: Monetary policy meetings will take place in the Czech Republic, Romania, Mexico, Colombia, Taiwan and Israel. Minutes from the Bank of Japan’s late-July Board meeting will be published. Yellen, Bullard, Evans, George, Kaplan, Powell, Harker, and Mester are scheduled to speak publicly during the week. So are ECB President Draghi, Bank of Canada […] More

New Overnight Developments Abroad - Daily Update

Other Realities Like Soft Growth Intrude

September 23, 2016

Markets had by and large enjoyed a good week through Thursday, buoyed by the dovish decisions of the Fed and Bank of Japan. Compared to closing levels last Friday, 10-year sovereign debt yields are down eight basis points in the United States, 9 bps in Germany, and 16 bps in Great Britain. Stocks had rallied. […] More

Central Bank Watch

South African Monetary Policy Stays on Hold

September 22, 2016

Officials at the South African Reserve Bank did not change their 7.0% policy interest rate at the latest review. Such has been at 7.0% since the last of six increases made in March of this year. That move culminated a tightening of policy from a 5.0% rate at the end of 2013. An improved inflation […] More

Central Bank Watch

Central Bank of the Republic of Turkey

September 22, 2016

Both the overnight marginal funding rate and late liquidity lending rate have been cut by 25 basis points to 8.25% and 9.75%. The 7.5% one-week repo rate and 7.25% overnight borrowing rate were not changed. These moves constitute both and easing of the policy stance and a “measured and cautious” further step toward simplification of […] More

Central Bank Watch

Bank Indonesia

September 22, 2016

The 7-day reverse repo rate, which has replaced the BI rate as the main operative central bank interest rate, was sliced further to 5.0% at this month’s meeting. According to a released statement, the action coordinates with the government’s efforts to buttress economic growth that’s been somewhat lower than hoped and assumed. Inflation at 2.8% […] More

Central Bank Watch

Bangko Sentral ng Pilipinas Leaves Filipino Central Bank Interest Rates Unchanged

September 22, 2016

A narrower interest rate corridor framework for monetary policy in The Philippines was adopted in June. A policy meeting in August did not change settings, which were also maintained after this month’s meeting. An overnight reverse repo rate of 3.0% is flanked by an overnight deposit rate of 2.5% and an overnight 3.5% lending rate. […] More

Central Bank Watch

Norges Bank

September 22, 2016

Norway’s central bank policy rate has been 0.50% since a 25-basis point cut in March. Norway is one of several economies in which monetary policy began to be tightened in the post-Great Recession economic recovery but had to be rescinded subsequently when the economy did not react well. The last cyclical low of 1.25% lasted […] More

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