Archive for February 8th, 2017

Central Bank Watch

Reserve Bank of New Zealand: “A Decline in the Exchange Rate Is Needed”

February 8, 2017

New Zealand’s Official Cash Rate had stayed at 3.5% from July 2014 to the policy review in June 2015 but was subsequently halved in seven steps through the final meeting of 2016 in December. At this year’s first central bank meeting, the 1.75% OCR level was retained and upbeat assessments were expressed about the strength […] More

Central Bank Watch

National Bank of Poland

February 8, 2017

Poland’s 7-day repo rate has been at 1.5% since a 50-basis point cut in March 2015. Inflation has risen lately for reasons largely beyond the control of monetary policy. According to a released statement, “the risk of inflation persistently running above the target in the medium term is low” because of a negative output gap […] More

Central Bank Watch

Reserve Bank of India: No Rate Change and More Hawkish Statement

February 8, 2017

India’s Monetary Policy Committee failed to cut its interest rates, which many analysts had expected. There had been a cut in the reverse repo rate in December to 5.75% from 6.0% and cuts in both it and the repo rate of 25 bps last October. A drop in inflation seems transient. Therefore, a more hawkish […] More

Central Bank Watch

Bank of Thailand

February 8, 2017

There have been no central bank interest rate changes in Thailand since cuts of 25 basis points each in March and April of 2015. Six earlier such reductions had been spaced between November 2011 and March 2014. The latest policy review ended today with a unanimous vote to keep the interest rate at 1.5%, which […] More

Central Bank Watch

Inflection Point in Icelandic Monetary Policy

February 8, 2017

The Monetary Policy Committee retained a 5.0% seven-day repo rate but released a statement that projects rising demand-side pressures, a possibly tighter labor market, and seemingly redirects the bias of policy from ease toward restraint. Economic growth was around 6% last year compared to the Bank’s assumption made last November of 5%. The last two […] More

New Overnight Developments Abroad - Daily Update

Significant Further Drop in Sovereign Debt Yields

February 8, 2017

Ten-year sovereign debt yields are down five basis points in Germany, Spain, Italy and the U.K. and by 3 bps in U.S. Treasury futures. The dollar firmed 0.1% against the euro overnight but is otherwise slightly lower, having slipped 0.4% against the yen, 0.3% relative to the Canadian currency and Mexican peso, 0.2% against the […] More

css.php