Central Bank Watch
Central Bank of the Philippines Cuts Key Rates By Just 25 Basis Rates
March 5, 2009
Analysts had expected a third consecutive 50-basis point cut following moves on December 18th and January 29th, but officials reduced their overnight borrowing and lending rates instead by 25 basis points to 4.75% and 6.75%. This less aggressive gesture was taken in light of several threats to inflation emanating from possibly higher oil prices, peso […] More
Central Bank Watch
Danish Central Bank Reduces Rate Premium Versus ECB
March 5, 2009
The Danmarks NationalBank met the ECB rate cut of 50 basis points and expanded it by another 25 basis points. The central bank 1-week CD rate accordingly fell to 2.25% from 3.0%, narrowing the premium relative to the ECB refinancing rate of 1.5% to 75 basis points. The latitude to do this reflects a softer […] More
Central Bank Watch
ECB Eases and Slashes Growth and Price Projections
March 5, 2009
The European Central Bank cut its rate structure by 50 basis points to new historic lows as anticipated. While the rate most widely watched by market participants becomes 1.5%, further from zero than the main U.S., British, or Canadian rates, the new deposit rate of 0.5% does move to a similar neighborhood where additional reductions […] More
Central Bank Watch
Bank of England Shifts to Quantitative Easing
March 5, 2009
The Bank of England made a final rate cut of 50 basis points to 0.5% in its Bank Rate and indicated 1) that further reductions risked market harm but 2) a rate of 0.5% by itself would not likely return CPI inflation to its 2% target in the medium term. The size of the rate […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Across-the-Board Dollar Gains Ahead of ECB and BOE Announcements
March 5, 2009
The dollar has risen 1.2% against the Australian dollar, 1.0% versus the Swissy, 0.9% against the euro, 0.8% against the kiwi and Canadian dollar and 0.4% relative to sterling and the yen. Asian stocks were mixed. There were rises of 2.0% Japanese Nikkei. The Philippines gained 2.0% also despite a smaller-than-expected central bank rate cut. […] More
