Central Bank of Brazil

Third Brazilian Rate Cut of the Cycle

October 30, 2019

The Central Bank of Brazil’s Selic Rate was cut 50 basis points to 5.0%. The decision was unanimous and followed 50-bp reductions announced July 31 and September 19. In a released statement, the policymaking committee characterized core inflation as comfortable. The Committee judges that this decision reflects its baseline scenario for prospective inflation and the […] More

Eight More Central Bank Meetings, a U.S. Current Account Report, and Downgraded Global Growth

September 19, 2019

Dollar movement overnight was mixed, with gains against the Australian dollar, kiwi, sterling, and yuan but losses relative to the yen, Swiss franc, euro, loonie and peso. The 10-year U.S. Treasury and Japanese JGB yields fell three basis points. Their German and British counterparts are respective a basis point higher and a basis point lower. […] More

Central Bank of Brazil’s Selic Interest Rate Lowered 50 basis points to 5.50%

September 18, 2019

Copom, the monetary policy committee at Brazil’s central bank engineered its second 50-basis point interest rate cut of 2018 on Wednesday, but this was only the latest in an extensive easing cycle. The Selic rate was at 14.25% prior to October 2016, 875 basis points higher than the new level. All but 200 basis points […] More

50-Basis Point Cut of Brazilian Selic Rate Exceeds Expectations

August 1, 2019

The Central Bank of Brazil’s policy committee, Copom, cut the Selic Rate by a greater-than-anticipated 50 basis points  to 6.0% and released a statement that implies but doesn’t guarantee further reductions. Today’s action resumes an easing cycle that ran from October 2016 to March 2018. The Selic rate had been 13.75% when the easing began […] More

Central Banks and Manufacturing PMI Reports in the Spotlight

August 1, 2019

The Bank of England Monetary Policy Committee left policy settings unchanged by a unanimous 9-0 vote as was expected. Today’s report coincided with the release of the quarterly Inflation Report. Projected growth in the U.K. last quarter was likely zero percent and that for 2019 has been lowered to 1.3%. The forecast assumes a Brexit […] More

Share Prices Down as U.S. and China Exchange Mutually Destructive Tariff Threats

May 9, 2019

It’s crunch time in the U.S.-Sino trade negotiations, and investors are hedging against the worst. The dollar climbed 0.6% against the yuan overnight. The price of Comex gold firmed another 0.2%, while WTI oil slid 0.3% and under $62. The 10-year U.S. Treasury yield popped higher after a poorly received Treasury auction yesterday but then […] More

Theme of the Day: Slowing Global Growth

March 21, 2019

Since the Federal Reserve’s policy decision and press conference yesterday, there’s been a parade of other central bank policy meetings. Although only Norway changed its policy rate — a hike no less — the running theme in the many central bank statements is that the slowdown in global demand late last year is continuing and […] More

Many Central Bank Meetings and a Stunning Deceleration of U.S. Import Price Inflation

December 13, 2018

The dollar shows no net overnight change against the Swiss franc, Chinese yuan, New Zealand dollar, or Canadian dollar. The greenback rose 0.8% versus the Mexican peso, 0.4% relative to the yen, and 0.1% versus the euro while dipping 0.1% vis-a-vis the Australian dollar and sterling. Asian equities rallied, but share prices in Europe and […] More

Softer Dollar

September 20, 2018

The dollar fell overnight by 0.8% against the kiwi, 0.6% relative to sterling, 0.4% vis-a-vis the euro and 0.2% versus the currencies of America’s NAFTA partners. The yen and yuan are unchanged. China partly matched Trump’s latest round of tariff hikes. While the 10-year German bund and British gilt yields settled back a basis point […] More

Brazilian and Indian Monetary Policy Decisions

August 1, 2018

Central Banks in two of the four BRIC economies held monetary policy reviews. Coincidentally, while the Brazilian Selic rate was left unchanged at 6.50%, the Indian repo rate was lifted 25 basis points to rest also at 6.50%. Previously, the Selic rate was lowered sharply by 50 basis points in 2016, 675 bps last year […] More

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