Archive for October 2016

Central Bank Watch

Bank of the Republic of Colombia

October 31, 2016

As they had done at the two previous monthly meetings, members of the Board of Directors left the main central bank rate unchanged at 7.75%. From September 2015 to July 2016, a series of increases had lifted such from 4.50% in response to inflation well above target. “Strong transitory supply shocks are blamed.” Officials are […] More

Foreign Exchange Insights and Next Week

Pre-Election Thoughts on the Dollar

October 31, 2016

Election Day will not be a Rubicon. That river has been crossed already. Whatever verdict voters hand down, the world and the subset of world investors may not perceive the United States with quite the same esteem and trust that existed before this nasty, undesirably long and petty election campaign. The conventional wisdom believes that Clinton […] More

New Overnight Developments Abroad - Daily Update

Softer Stocks, Oil, and Yen on Halloween

October 31, 2016

Share prices fell 0.6% in South Korea, 0.2% in Taiwan, and 0.1% in Japan and Singapore. Sharper equities in Europe show markets already down 0.8% in France and Italy, 0.6% in Spain and Switzerland, 0.5% in Greece, and 0.4% in the U.K. and Germany. OPEC minister failed over the weekend to secure any agreement on […] More

Foreign Exchange Insights and Next Week

Next Week

October 29, 2016

Despite holiday interruptions, the week ahead is full of significant central bank meetings and plenty of economic data releases. Time Change in Europe: Clocks in the region revert tonight to standard time from daylight savings time. The interval between time in Europe and the United States will accordingly shrink by an hour. London-New York, for […] More

Central Bank Watch

Bank of Russia Retains Key 10.0% Interest Rate

October 28, 2016

Two 50-basis point interest rate cuts have already been implemented this year in June and September on top of 600 basis points of easing done during the first seven months of 2015. A decision at this month’s meeting not to ease further in 2016 is defended, however, on the grounds that a slowdown in inflation […] More

New Overnight Developments Abroad - Daily Update

Nervous Market Undertone

October 28, 2016

With the fast-approaching monthend, the usual heavy flow of data releases is being digested. Investors are in a guarded mood with just over a week left before the U.S. election. The Fed is widely expected to raise interest rates soon. The BOJ, meeting Monday and Tuesday is not expected to modify its stance. The first […] More

Central Bank Watch

National Bank of Ukraine

October 27, 2016

Ukraine’s key interest rate was cut by another full percentage point to 14.0%, bringing the cumulative drop since May to 800 basis points. If economic developments continue to evolve as monetary officials expect, more reductions will follow, according to a released statement.  Most importantly, total and core CPI inflation have been diminishing. Total inflation last […] More

Central Bank Watch

Bank of Israel

October 27, 2016

Israel’s central bank interest rate was left at 0.10% after the October policy meeting. It’s been at that level since a 15-basis point reduction in February 2015. In each of the four previous calendar years, three 25-bp reductions had been administered. On-year CPI inflation still lies below zero and significantly under what constitutes price stability. This […] More

Central Bank Watch

Swedish Riksbank

October 27, 2016

The Executive Board’s statement after agreeing to keep a negative 0.50% central bank interest rate has plenty of forward guidance painting a picture of even more monetary accommodation. The interest rate is unlikely to rise until early 2018, six months later than imagined earlier. Asset buying in the second half of 2016 will be no […] More

Central Bank Watch

Bank of Norway

October 27, 2016

Norway’s main central bank interest rate will remain at a record low of 0.50%, the level since a 25-basis point reduction last March. The rate had also been reduced by 50 basis points in both 2014 and 2015. Today’s released statement from the central bank Executive Board is somewhat less dovish than the one following […] More

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