Archive for December 2016

New Overnight Developments Abroad - Daily Update

Sovereign Debt Yields Lower on Last Business Day Before Christmas

December 23, 2016

Ten-year sovereign debt yields retreated four basis points in Germany and Italy, three bps in U.K., France and Canada and two bps in the United States. Japan’s market is shut to commemorate the Emperor’s birthday. The dollar slipped 0.2% overnight against the euro and yen but climbed against commodity-sensitive currencies and sterling. The greenback is […] More

Deeper Analysis

U.S. GDP

December 22, 2016

Real economic growth in 3Q16 was revised up 0.3 percentage point to 3.5% annualized from the second quarter. However, the on-year pace of 1.7% was down from 2.2% in the year to 3Q15 and 2.9% in the year to 3Q14. Personal consumption remains a mainstay of the economy, posting successive on-year advances of 3.2% in […] More

Central Bank Watch

Czech National Bank

December 22, 2016

Since November 2012, the Czech two-week repo rate has been a mere 0.05%. A year after dropping to that level, an additional asymmetric foreign exchange rate policy was added to the monetary policy toolkit, stipulating that inflation would be used to prevent the koruna from strengthening beyond the 27 per euro level but not to […] More

Central Bank Watch

Bangko Sentral ng Pilipinas

December 22, 2016

The Filipino reverse repo rate, which has been at 3.0% since a 25-basis point hike in September 2014, was left unchanged at the latest Board meeting. So were its other interest rates and reserve requirement ratio. A released statement asserts the appropriateness of the current ┬ámonetary stance. Inflation is currently under the 2-4% target but […] More

Central Bank Watch

Central Bank of the Republic of China (Taiwan)

December 22, 2016

It was decided unanimously to leave Taiwan’s central bank interest rate at 1.375% after the latest quarterly policy review. Four consecutive reductions of 12.5 basis points had been implemented in September and December of 2015 and March and June of this year. A statement released after the meeting justified the stance as follows: Against a […] More

New Overnight Developments Abroad - Daily Update

Softer Dollar but Firmer Oil Price

December 22, 2016

On this last full session before the Christmas break, the dollar fell 0.5% against the euro and 0.4% relative to the Swiss franc. Dollar/yen is steady and the dollar has strengthened against sterling, the Aussie and Canadian dollars, and Mexican peso. West Texas Intermediate crude oil advanced 1.1% to $53.07 per barrel following news of […] More

Central Bank Watch

Swedish Riksbank

December 21, 2016

The final Executive Board meeting of 2016 produced a An unchanged negative 0.5% repo rate. That’s been the level since a 15-basis point cut last February. The rate turned negative a year earlier in February 2015 and has not been above zero since a 25-basis point reduction in October 2014. Unchanged projected inflation of 1.0% […] More

Central Bank Watch

Bank of Thailand Keeps 1.5% Interest Rate

December 21, 2016

In deliberating their policy decision, the Committee assessed that the Thai economy would continue to expand at a pace close to the previous assessment, but downside risks increased. Inflation was still expected to slowly rise. Meanwhile, monetary conditions remained accommodative and conducive to the economic recovery. Hence, the Committee decided to keep the policy rate […] More

New Overnight Developments Abroad - Daily Update

Somewhat Softer Dollar on This First Day of Winter

December 21, 2016

The dollar has weakened 0.7% against the euro, 0.4% relative to the Swiss franc, 0.3% vis-a-vis the yen, 0.2% versus sterling, and 0.1% against the kiwi and yuan. U.S. stocks are a tad lower. The German Dax is flat. Stocks fell in other European centers and lost 1.0% in Indonesia, 0.3% in China and Japan, […] More

Central Bank Watch

Central Bank of the Republic of Turkey

December 20, 2016

Turkish monetary policy settings were held unchanged at this month’s meeting. The one-week repo rate was left at 8.0% following a 50-basis point hike at the prior meeting on November 24. The marginal funding rate, which was raised 25 bps to 8.5% in November, stays at the level, and the key borrowing rate of 7.25% […] More

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