Central Bank Watch

Bank Indonesia

February 16, 2017

The BI Board kept its seven-day reverse repo rate at 4.75%. It was cut last year six times between January and October, each time by a quarter percentage point. A statement released today projects 5.0-5.4% growth in 2017, an improved balance of payments last quarter and in-target inflation (3-5%) during the forecast horizon. Indonesia has […] More

New Overnight Developments Abroad - Daily Update

Markets React to ECB Minutes

February 16, 2017

Published minutes from the last ECB meeting (known as the ECB Account) allayed concerns that the recent spike in inflation to around the central bank’s target would not lead to an abandonment of the current easy stance. The rise of headline inflation was caused by energy and shows no visible sign of indirect or second […] More

Foreign Exchange Insights and Next Week

Dollar Uptrend Back on Track

February 15, 2017

The dollar is back in the saddle. After a strong performance last autumn, the dollar hit a speed bump in January but experienced solid demand in the first half of this month. Against both the euro and yen, the U.S. currency posted gains¬†in each month of last quarter. So far in February, it has recovered […] More

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

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