Central Bank Watch
Bank of Mexico Tightens for Fourth Time in 2018
December 20, 2018
A 25-basis point increase in Mexico’s overnight interbank rate to 8.25% announced today brings the cumulative increase this year to a full percentage point, which matches what the Fed did this year and keeps the premium relative to the federal funds target at a very wide six percentage points. Aside from earlier hikes this year […] More
Central Bank Watch
First Swedish Monetary Policy Rate Hike since 2011
December 20, 2018
The Swedish Riksbank Executive Board raised its repo rate from -0.50% to -0.25%, marking the first rate hike since July 2011 and the first change since a 15-basis point cut in February 2016. The rate has been zero percent or lower since October 2014. A statement from the Board doesn’t anticipate another rate hike until […] More
New Overnight Developments Abroad - Daily Update
Softer Dollar on the First Day After the Fed’s Rate Hike
December 20, 2018
Markets did not take comfort from Wednesday’s FOMC interest rate hike or the upbeat economic prognosis of Chairman Powell. The dollar fell overnight by 0.6% against the euro, 0.5% relative to the yen and Swiss franc, 0.4% vis-a-vis sterling, 0.3% versus the Australian dollar, and 0.2% against the yuan and loonie. Share prices fared poorly […] More
