Archive for February 2017

Central Bank Watch

Swedish Riksbank Retains Very Accommodative Stance

February 15, 2017

The central bank executive board Kept the repo rate at negative 0.50%. Released a statement proclaiming a further rate cut to be likelier in the near term than any hike and forecast the repo rate no higher than zero even as late as the first quarter of 2019. Agreed to continue quantitative stimulus (bond purchases) […] More

New Overnight Developments Abroad - Daily Update

Fed and Flynn

February 15, 2017

Markets are trading on two themes primarily: How quickly¬†will the Fed raise interest rates again? Yellen’s testimony yesterday and separate remarks by Fed District Presidents Kaplan and Lacker suggest a third increase is coming pretty soon and need not be delayed pending clarification of fiscal and other policy changes. Yellen reprises her testimony before the […] More

Central Bank Watch

Central Bank of Chile

February 14, 2017

A 25-basis point cut of Chile’s central bank interest rate to 3.25% had been the first reduction since October 2014. In between there were two 25-basis point increases in the final quarter of 2015. At its February meeting today, the central bank Board elected not to reduce the rate further this month but signaled a […] More

Central Bank Watch

National Bank of Serbia

February 14, 2017

Similar to January’s Executive Board meeting, Serbian monetary officials agreed to leave they central bank interest rate at 4.0%, the level since a 25-basis point reduction seven months ago. There also was a 25-bp cut a year ago, 350 basis points of easing during 2015, 250 bps of easing in 2014 and 275 bps worth […] More

New Overnight Developments Abroad - Daily Update

A Valentine’s Day Full of Data and Other Developments

February 14, 2017

Market Movement: The dollar is higher against sterling but lower against the euro, Swissie, yen, and commodity-sensitive currencies. Oil and gold climbed 1.3% and 0.7% overnight. 10-year German bund and Japanese JGB yields rose a basis point, while the 10-year Treasury and British gilt slid a basis point. Japan’s Nikkei slumped 1.1%. Central Bank News: […] More

New Overnight Developments Abroad - Daily Update

Spotlight in Coming Week to Fall on the Fed

February 13, 2017

Fed Chair Janet Yellen’s semi-annual Humphrey-Hawkins testimony before the Senate Banking Committee on Tuesday and House Financial Services Committee on Wednesday could prove contentious, with Republicans in firm control of the government, commodity-fueled price pressure reawakening in the U.S. and around the world, and a severe critic of Fed accommodation, David Malpass, having just been […] More

Foreign Exchange Insights and Next Week

Next Week

February 10, 2017

Central Banks: Federal Reserve Chair Yellen delivers her semi-annual Humphrey Hawkins testimony on the economy and monetary policy to the Senate Banking Committee on Tuesday and the House Financial Services Committee on Wednesday. Fed District Presidents Lacker, Rosengren, Lockhart, Kaplan, and Harker speak publicly as well during the week. Chile, Indonesia, Sweden and Romania have […] More

New Overnight Developments Abroad - Daily Update

Renewed Pressure on Ezone Peripheral Sovereign Debt

February 10, 2017

The dollar rose on speculation that details of growth-supporting U.S. tax reform will be unveiled within a couple of weeks. The U.S. currency rose 0.3% against the yen, euro and sterling, 0.2% relative to the Swiss franc and 0.1% vis-a-vis the Australian dollar and Chinese yuan. The Mexican peso recovered 0.3% following a 50-basis point […] More

Central Bank Watch

Another Mexican Central Bank Rate Hike

February 9, 2017

The U.S. election put Mexico in a world of hurt. A variety of policy initiatives by the new administration north of the border has weakened the peso sharply, driven Mexican import prices considerably higher and overall inflation above target, and depressed consumer and business confidence. Growth slowed last quarter. According to a released statement after […] More

Central Bank Watch

Filipino Monetary Policy Unchanged After First Review of 2017

February 9, 2017

The Monetary Board at Bangko Sentral ng Pilipinas kept the overnight reverse repo at 3.0%, the overnight lending rate at 3.5%, and reserve requirements at 3.0%. A released statement continues to project in-target (2-4%) inflation this year and next. A recent rise reflects in headline inflation doesn’t reflect core items and, at 2.7%, remains in […] More

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