Central Bank Watch
Central Reserve Bank of Peru
December 15, 2016
A statement released after this month’s monetary policy meeting said the decision to leave the key interest rate at 4.25% “is consistent with an inflation forecast in which inflation converges to 2 percent towards the end of 2017. … Expectations of inflation in 12 months have increased slightly but continue showing a declining path within […] More
Central Bank Watch
Bank of Mexico
December 15, 2016
Mexican monetary officials just engineered the fifth 50-basis point interest rate hike of 2016. Along with a 25-basis point hike in December 2015, the rate has risen from 3.0% to 5.75% in the space of twelve months, nearly matching the dramatic tightening done by the Fed in 1994-5. The inflation dynamic faced by Mexican officials […] More
Central Bank Watch
Swiss National Bank
December 15, 2016
The Swiss National Bank reported result of its quarterly policy review today, which ended without a change in the interest rate of -0.75% on overnight sight deposits or the pledge to intervene as needed to counter what central bank officials to be a still significantly overvalued franc. Since January 2015, intervention has been done on […] More
Central Bank Watch
Bank of England
December 15, 2016
A statement following the latest meeting of the Monetary Policy Committee reveals that policymakers voted unanimously to retain present policy parameters: a 0.25% Bank Rate, an incremental GBP 60 billion program of gilt purchases bringing such to a new limit of GBP 435 billion, and the planned purchase of GBP 10 billion of corporate debt. […] More
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Bank Indonesia
December 15, 2016
From 6.25% at the start of 2016, the BI seven-day reverse repo rate was cut by 25 basis points each in January, February, March, June, September and October to the current level of 4.75%, which was held steady at this month’s meeting. The next meeting will be in February, as January is always skipped. Today’s […] More
Central Bank Watch
Bank of Korea
December 15, 2016
Four 25-basis point interest rate cuts from August 2014 to June 2015 were followed more recently by yet another 25-bp reduction in June of this year. South Korea’s 7-day repo rate now stands at 1.25%, a record low. A policy statement released today. South Korea is sustaining only modest growth, and inflation is low with […] More
Central Bank Watch
Bank of Norway Keeps 0.5% Interest Rate and Signals No Likely Change for Quite a While
December 15, 2016
Three 25-basis point interest rate cuts were administered between June 2015 and March 2016. Policy since then has remained unchanged. Macroeconomic trends might justify further easing but housing market imbalances and external uncertainties argue otherwise. Changes in the outlook for inflation and capacity utilization imply, in isolation, a somewhat lower key policy rate in the […] More
New Overnight Developments Abroad - Daily Update
Broad Financial Market Adjustments Intensify in Wake of FOMC Meeting
December 15, 2016
The dollar gained overnight by another 2.0% against the Australian dollar, 1.5% versus the euro, 1.6% vis-a-vis the kiwi, 1.2% relative to the yen, 0.9% against sterling, and 0.6% versus the yuan. Key levels are being approached such as parity with the euro, 120 yen, and 7 renminbi. Throughout the 8-year Obama stewardship, Republicans fought […] More
