New Overnight Developments Abroad - Daily Update
Bad Vibrations
April 14, 2017
Most markets around the world are closed for Good Friday. Share prices in those few open markets are lower, with declines of 1.4% in Russia, 0.9% in China, 0.8% in Pakistan, 0.6% in South Korea, 1.1% in Taiwan, and 0.4% in Malaysia, Japan, and Vietnam. Dangerous geopolitics has maintained a sour mood. Russian officials now […] More
Foreign Exchange Insights and Next Week
Next Week
April 13, 2017
A lean holiday-shortened week lies ahead both from a data-release and central bank standpoint. Central Banks: Bank Indonesia holds an interest rate policy meeting on Thursday. Minutes from the last Reserve Bank of Australia meeting get released. So does the Fed Beige Book that examines regional U.S. economic trends. Eric Rosengren has a public speaking […] More
Central Bank Watch
Semi-Annual Review of Singapore’s Monetary Policy
April 13, 2017
The Monetary Authority of Singapore does not target an interest rate. Instead, monetary policy in a domestic money market sense is derivative of currency policy. The goal is a target corridor for the Singapore dollar’s trade-weighted value. Goals are made for the width of the currency band, its slope over time, and the mid-point between […] More
Central Bank Watch
Bank of Korea
April 13, 2017
South Korea’s central bank base rate was cut five times from August 2014 to June 2016 by a total of 125 basis points, halving the key interest rate to 1.25%. While modestly bumping up projected GDP growth in 2017 from 2.5% that was forecast three months ago, monetary officials still anticipate only moderate expansion and […] More
New Overnight Developments Abroad - Daily Update
Reaction to Trump Remarks Muted by Coming Holidays
April 13, 2017
President Trump gave an exclusive interview to the Wall Street Journal in which among other things he complained that the dollar was too strong, proclaimed that China is not a currency manipulator, and jaw-boned the Fed to keep interest rates low. Markets were closed today in Norway and Mexico. Good Friday observances tomorrow will shut […] More
Central Bank Watch
Full Percentage Point Reduction of the Brazilian Selic Interest Rate
April 12, 2017
The monetary policy committee at the Central Bank of Brazil, known as Copom, cut the Selic rate to 11.25% from 12.25%. This larger incremental cut after ones of 75 basis points in both January and February and 25 bps each last October and November was deemed appropriate according to a released statement. Analysts were anticipating […] More
Central Bank Watch
Bank of Canada Leaves Policy Rate at 0.5%, Projects Modest Growth and Inflation Dipping by Mid-2017
April 12, 2017
Canada’s overnight interest rate target has been 0.50% since cuts of 25 basis points engineered in January and July of 2015. While there’s no urgency to begin tightening as the Federal Reserve is doing, all consideration of a near-term cut has been removed since January due to stronger-than-anticipated growth early this year. Excess slack in the […] More
New Overnight Developments Abroad - Daily Update
Several Disinflationary Signs Around the World
April 12, 2017
Chinese consumer prices fell 0.3% on month in March and remained below a 1% 12-month trend at 0.9%. PPI inflation settled back to a 2-month low of 7.6%. U.S. import prices posted a monthly drop (0.3%) for only the third time in the past year and a smaller on-year advance of 4.2%. Non-fuel import price […] More
Central Bank Watch
National Bank of Serbia
April 11, 2017
After leaving their key interest rate unchanged at 4.0%, the level since a cut of 25 bps last July, Serbian monetary officials released a statement that again stressed their expectation that inflation will remain inside the 3.0 +/- 1.5% target range. Core inflation has been lower than headline inflation, printing at just 1.7% in February. […] More
New Overnight Developments Abroad - Daily Update
Market Unsettled Amid Continuing Geopolitical Threats
April 11, 2017
It’s a dangerous world. U.S. policy on Syria appears to be all over the place. How the Kremlin will respond to the changed U.S. stance is uncertain. North Korea is exploiting the confusion, and the outcome of the fast-approaching French election’s is in greater doubt than a week ago. Brexit negotiations are unlikely to go […] More
