Archive for January 19th, 2017

Central Bank Watch

Central Bank of Chile Cuts Interest Rate

January 19, 2017

A 25-basis point reduction to 3.25% was the first change in Chile’s monetary policy rate since a 25-basis point hike way back in December 2015. The move follows an unexpected deceleration of CPI inflation to 2.7% last month from 2.9% in November. Chilean growth has been soft, and that’s no longer confined to the resource […] More

Larry's Blog

Businessmen in Politics

January 19, 2017

An article in today’s business section of the New York Times presents the Trump cabinet as an excellent experiment to determine if the skills that make a successful businessman transfer readily to the challenges faced by political leaders. Never before has a collection of very wealthy leaders of business compiled a presidential cabinet as the […] More

Central Bank Watch

European Central Bank

January 19, 2017

All things considered, the Governing Council of the ECB sent a dovish signal to the marketplace but announced no policy modifications after the first of eight scheduled reviews in 2017. Consider, for example, that on-year inflation in the most recent twelve months compared to the previous 12 months through December 2015 had risen by 1.5 […] More

Central Bank Watch

Bank Negara Malaysia

January 19, 2017

Following a percentage point of tightening in 2010-11 and a subsequent 25-basis point hike in July 2014, the Malaysian overnight money rate target had stood at 3.25% until a 25-basis point reduction last July. Inflation has eased following the lapse of Malaysia’s goods and services tax, prompting the incentive for the central bank rate cut, which […] More

Central Bank Watch

Bank Indonesia Reaffirms Monetary Stance

January 19, 2017

Cuts of 25 basis points in the Indonesian seven-day reverse repo rate were undertaken last year in January, February, May, June, September and October. The resulting 4.75% rate level during the past three months was extended at the first policy review of 2017. A released statement asserts that the monetary stance associated with this rate […] More

New Overnight Developments Abroad - Daily Update

Several Central Banks Hold Scheduled Policy Meetings

January 19, 2017

Central banks in Euroland, Indonesia, Malaysia and Chile hold their first interest rate policy meetings of 2017. The ECB retained a zero percent refinancing rate, flanked by a 0.25% interest on its marginal lending facility and a negative 0.40% deposit rate. Bond buying of EUR 80 billion per month will continue this quarter, followed by […] More

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