Central Bank Watch
Norway's Turn
February 3, 2009
The Reserve Bank of Australia cut its cash rate today, and the Bank of England will no doubt do so on Thursday. But first, policymakers at the Norges Bank meet and are widely expected to cut their key deposit rate at 13:00 GMT on Wednesday. The rate is presently at 3.0% after cuts of 50 […] More
Currency Markets in the News
Long-Term Dollar Prospects: New Reflections
February 3, 2009
Inspired by new measures unveiled in a number of countries to support growth and credit markets, foreign exchange markets grew more confident today that the banking crisis and recession will end eventually. The dollar and yen have been major beneficiaries of risk aversion, so on days like today when investors see a glimmer of light […] More
A Few Thoughts About the Raise Spending or Cut Taxes Debate
February 3, 2009
It has become cliche in American politics that every effort by Washington to stimulate fiscally has divided Democrats and Republicans in a predictable way about the composition of the relief. Republicans always want to reduce taxes, and the Democrats favor an increase in public spending. If Republicans have a minimum amount of necessary taxation in […] More
Larry's Blog
Global Industrial Production in a Tailspin
February 3, 2009
Few measures depict the breadth and severity of the global recession as well as industrial production. Here is a sampling of especially pronounced declines posted between December 2007 and December 2008: Japan 20.6%, Taiwan 32.3%, the Ukraine 26.6%, Singapore 13.5%, South Korea 18.6%, Brazil 12.4% and Russia 10.8%. The drop in the United States (7.8%) […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Several Governments Offer More Stimulus
February 3, 2009
The dollar is 0.4% higher against sterling and the Canadian dollar. It also shows rises of 0.3% against the kiwi and 0.1% versus the euro and yen. The dollar fell 0.8% against the Australian dollar, where a A$ 42 billion fiscal package was unveiled and interest rates were cut by 100 basis points. The Swissy […] More
Central Bank Watch
Australian Cash Rate Reduced 100 Basis Points to 3.25%
February 3, 2009
The 100-basis point size of today’s Australian rate cut was as expected and followed an earlier unveiling of a A$ 42 billion fiscal stimulus by the government, its second of the crisis. This was the fifth rate reduction since September, cumulating to 300 basis points from the prior peak of 7.25%. The four previous moves […] More
