Central Bank Watch
Quantitative Easing British Style
March 19, 2009
The Monetary Policy Committee meeting of March 4-5th advanced British monetary policy far down the road of quantitative easing. By a 9-0 vote, the Bank of England Halved its Bank Rate to 0.5%. Agreed to finance Gbp 75 billion of asset purchases by creating central bank reserves, that is printing money. This will be done […] More
Inflation in February
March 19, 2009
Several countries have reported higher-than-forecast inflation this month, this morning’s Canadian figures constituting the latest example. Canada’s CPI rose 0.7% in February not seasonally adjusted and 0.4% when adjusted. Core CPI, up 0.3%, also exceeded street estimates. On-year inflation increased to 1.4% from 1.1% in January, and core failed to drop under the January 12-month […] More
Central Bank Watch
Icelandic Rate Cut: The First of Several
March 19, 2009
The Central Bank of Iceland cut its benchmark rate to 17% from 18%, embarking on a cautious path of monetary easing. Step number two, which should entail a reduction of at least a full percentage point, will likely be made on April 8th. To halt a run on the Icelandic krona, the IMF mandated a […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Lower Bond Yields and Dollar After Fed And BOJ Actions
March 19, 2009
Quantitative easing announced yesterday by the Fed and BOJ lifted stocks but depressed the dollar and bond yields. These trends have extended further. The dollar is off by 0.7% against the Australian dollar, 0.5% relative to sterling, the yen, and kiwi, 0.4% versus the C-dollar and Swissy, and 0.2% against the euro. While the Nikkei […] More
