Chinese CPI

Big Day for Central Banks But Watching Greece Too

February 9, 2012

The Bank of England’s Monetary Policy Committee expanded quantitative easing as many thought it would.  The Asset Purchase Program’s ceiling was raised to GBP 325 billion from GBP 285 billion.  This extension is expected to take three months to complete.  The Bank rate was held steady at 0.5%. The European Central Bank will announce its […] More

Euroland Accord Gets Mixed Reviews

December 9, 2011

EU leaders announced their fifth effort to stop the sovereign debt chain reaction.  It features automatic mechanisms to rein in structural deficits that surpass 0.5% of GDP and to penalize total deficits in excess of 3.0% of GDP.  The EFSF rescue fund would be activated next year rather than not before 2013 and is to […] More

A More Constructive Tone for the Euro

October 14, 2011

Despite the lack of a big breakthrough in resolving the euro area’s debt crisis and a one-notch Spanish credit rating downgrade by S&P, this week’s more hopeful mood among investors has been maintained.  Regional finance ministers meet today as a precursor to a meeting in Paris on the weekend of G20 finance ministers.  The dollar […] More

8.9 Earthquake in Northeast Japan, Tsunami Warnings in the Pacific

March 11, 2011

Risk avoidance has been reinforced by Japan’s strongest quake in 100 years and the world’s severest in six years.  Hawaii and other Pacific coasts are under a tsunami warning.  Stocks fell sharply, but the yen is higher on view that quake will generate capital repatriations to Japan.  Other concerns weighing on markets are 1) the […] More

No Rate Hike in China

December 13, 2010

The People’s Bank of China failed to complement the recent increase of reserve requirements with an increase in central bank interest rates.  The move in reserve requirements, it is now clear, was intended as a substitute tightening move and one that would put less upward pressure on the yuan, which fell back 0.2% against the […] More