ECB

ECB Review

June 2, 2016

The Governing Council left key interest rates unchanged.  The last changes in March sliced the refinancing rate and marginal lending facility rate by 5 basis points each to zero and 0.25%, respectively, and the deposit rate by 10 basis points to negative 0.40%. A released statement from ECB President Draghi placed the focus on implementing […] More

Central Bank News from Japan as Investors Await ECB Press Conference

June 2, 2016

Bank of Japan Board member Sato spoke sharply in opposition to the current policy stance.  He had voted against negative interest rates earlier this year and is even more convinced now that the strategy of quantitative easing and negative interest rates no matter what in an effort to restore 2% inflation as soon as possible […] More

A Focus on Central Banks, Commodities and China

April 21, 2016

The ECB just announced  decisions from today’s third Governing Council meeting of the year.  No further rate changes were enacted.  At the prior meeting on March 10, the refinancing rate was sliced 5 basis points to 0.0%, the deposit rate was moved 10 basis points more deeply into the red to -0.40%, and the marginal […] More

High-Flying Yen

April 7, 2016

The yen climbed to new highs for the move of 108.02 per dollar and 123.12 per euro.  The yen overnight gained 1.3% on balance against the U.S. currency despite yesterday’s hint from a Ministry of Finance official that intervention is possible.  Today, Prime Minister Abe seemed to undermine that threat, saying that countries should not […] More

Euro Rises on ECB Announcements

March 10, 2016

The ECB Governing Council announced a more aggressive package of stimulants than analysts were expecting. All ECB central bank interest rates including the main refinancing rate were lowered. The size of monthly quantitative asset purchases was increased 33% to EUR 80 billion and will run at least through end-2017. The types of eligible assets in […] More

Central Banks Stand Down

January 21, 2016

In these tumultuous times, it would not be surprising to see monetary policy changes taken to help dissipate the high level of market fear.  Instead, The ECB Governing Council retained its interest rate structure, consisting of a 0.05% refinancing rate flanked by a negative 0.30% deposit rate and a +0.25% marginal lending rate. Brazil’s monetary […] More

ECB Delivers Less Support than Expected, Sending Euro Sharply Higher

December 3, 2015

ECB officials, who had strongly hinted that significant additional monetary policy relief is imminent, failed to meet the market’s expectations.  Largely in response, the dollar recorded an  overnight drop of 2.1% against the euro and 1.7% versus the Swiss franc.  Share prices in Europe are down 3.0% in France, 2.8% in Germany, 2.0% in Spain, […] More

Heavy Flow of Information Continues

September 3, 2015

The Bank of Brazil ended a 7-meeting streak of rate tightening, as risks of deepening recession outweigh danger of vicious cycle of currency depreciation and rising inflation.  The Selic Rate was left at 14.25%, its level after 325 basis points of tightening between October 2014 and July 2015. The Swedish Riksbank likewise left monetary policy […] More

Many Competing Stories but a Unifying Theme is Better Growth in Europe by a Slower Trend Elsewhere

April 15, 2015

ECB President Draghi is wrapping up his press conference.  Policy wasn’t changed further.  Focus is currently on full implementation of policy initiatives taken recently.  Draghi finds the favorable impact of quantitative easing to be impressive: real interest rates have fallen as expected inflation is rising.  An important new sentence in the released statement explains what […] More

Report of Weak German Orders and a Difficult Day for the Kiwi

March 5, 2015

The New Zealand dollar sank 1.0% against the dollar and fell to a one-month low against the Australian dollar on the possibility that the Reserve Bank of New Zealand might resort to property market-specific regulatory changes instead of and delaying a near-term interest rate hike. German industrial orders slumped 3.9% in January, reversing nearly all […] More

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