Bank of England Preview
December 2, 2008
The Bank of England will cut its Bank Rate by at least a full percentage point on Thursday, and there is a possibility officials will replicate November’s 150-basis point reduction. A dramatic downshift in the BOE’s projected CPI path indicated that such would be likely below 1% in two years’ time if the rate remains […] More
Another Big New Zealand Rate Cut Expected
December 2, 2008
Opinion is split over whether the Reserve Bank of New Zealand will slash its 6.5% cash rate to 5.5% or 5.0%. The announcement will be made at 02:00 GMT Thursday (09:00 local time and 21:00 Eastern Standard Time Wednesday in the United States). Like Australia, this will be the fourth reduction in this easing cycle. […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Australian and Vietnamese Central Bank Rates Cut by 100 Bps
December 2, 2008
The dollar is mixed, with gains of 0.5% against sterling, 0.3% against the Swissy, and 0.1% versus the yen but losses of 0.5% against the Aussie dollar, 0.4% against the kiwi, and 0.2% against the euro. The Canadian dollar is unchanged. Asian stocks mostly fell, with losses of 6.4% in Japan, 4.7% in the Philippines, […] More
Central Bank Watch
Reserve Bank of Australia Cuts Cash Rate to 4.25% From 5.25%
December 2, 2008
The 100-basis point reduction was slightly above consensus, although matched several forecasts including my own. There have been four cuts since September 2nd, totaling 300 basis points. The new 4.25% level matches the last cyclical low from Dec 2001 to May 2002 and is 50 basis points lower than the prior two cyclical lows of […] More
Larry's Blog
A U.S. Fiscal Stimulus That Also Addresses Healthcare
December 2, 2008
The U.S. recession starts its second year this month. The severity of the slump accelerated sharply in the present quarter in America as well as in other advanced economies. The recession already is longer than the 10-month average for all postwar downturns and will become the longest one in May. The cycle is loaded with […] More
