Central Bank Watch
New Zealand Cash Rate Slashed by a Whole Percentage Point
October 22, 2008
Rate cuts by the Reserve Bank of New Zealand of 25 basis points on July 24th and 50 basis points on September 11th were escalated today in another twofold jump to 100 basis points. The new cash rate of 6.5% is the lowest since early 2005 and matches the forecast of a majority of analysts. […] More
Larry's Blog
A Vote for Paul Volcker
October 22, 2008
A lengthy front-page story in Tuesday’s Wall Street Journal reported that former Fed Chairman Paul Volcker has emerged as one of Barack Obama’s closest economic advisors in the presidential campaign and that he is likely to play key roles if Obama is elected both during the transitional period and/or as part of the next administration. […] More
Currency Markets in the News
Japanese Situation Getting Much Worse
October 22, 2008
The good news supposedly is that Japan’s financial institutions already experienced a major purge much earlier this decade, but that positive factor is being drowned in a sea of bad news. The economy has joined Europe and the United States in recession, and Japanese prospects are darkening. The Bank of Japan’s quarterly regional economic report […] More
Larry's Blog
Swedish Riksbank Likely to Cut Benchmark Rate Again on Thursday
October 22, 2008
After running one of Europe’s tightest monetary policies earlier this year, the Riksbank participated in the round of concerted rate cuts on October 8th and is poised to reduce its repo rate by at least 25 basis points on Thursday. Global and domestic economic circumstances are worsening. Swedish share prices have dropped around 10% since […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: More Asset Liquidations As Risk Aversion Surges
October 22, 2008
The low-yielding yen soared 1.6% against the dollar and by much more against other currencies. The U.S. dollar hit new 2008 highs against sterling, the euro, the Swiss franc, and the Canadian dollar. In the pound’s case, the low represents a five-year trough. The dollar is up respectively against those four currencies by 1.8%, 1.3%, […] More
