Deeper Analysis
Some Revealing Excerpts from May 2-3 FOMC Minutes
May 24, 2017
The excerpts below lend credence to rising expectations that the federal funds rate target will undergo its fourth increase at the June meeting. At the same time, great emphasis is placed on ensuring that rate normalization proceed at a gradual pace. The same feeling surrounds balance sheet reduction, which also will proceed at a very […] More
Central Bank Watch
Bank of Canada Leaves Overnight Rate at 0.50%
May 24, 2017
There have been only five changes in the Bank of Canada interest rate, all by 25 basis points, since the Great Recession ended for a net change of +25 basis points. The first three moves in June-September of 2010 were increases, and the most recent two were cuts in January and July of 2015. A statement […] More
Central Bank Watch
Central Bank of Hungary
May 24, 2017
The policy interest rate of Magyar Nemzeti Bank has been just 0.90% since a trio of cuts in March, April and May of 2016. A statement of the latest review defends the appropriateness of continuing that level and warns that “if inflation remains persistently below the target, the Council will stand ready to ease monetary […] More
Central Bank Watch
Bank of Thailand Keeps Status Quo
May 24, 2017
Thailand’s latest monetary policy review ended with a unanimous assertion of a continuing need for a growth-supporting accommodative stance. The monetary policy council retained a 1.5% policy rate. It’s been at that level since eight 25-basis point reductions implemented between November 2011 and April 2015. The seventh of those cuts was made in March 2015. […] More
New Overnight Developments Abroad - Daily Update
Moody’s Downgrades China… FOMC Minutes Due
May 24, 2017
Only industrial metal prices have reacted much to news that Moody’s downgraded its Chinese credit rating for the first time in nearly 30 years. Commodities have been the main mover today. Comex gold fell 0.3% to $1,251.70 per ounce. Industrial metal prices like nickel, iron ore, and copper tumbled much more steeply. But WTI oil […] More
