Currency Markets in the News
Friday's G-7 and G-20 Meetings
April 21, 2009
Finance ministers from the Group of 20 will meet Friday to discuss implementation of the broad goals promised by their leaders at the London summit on April 2nd. Group of Seven central bankers and finance ministers also gather in Washington on Friday for the second of their three scheduled meetings this year. When they last […] More
Central Bank Watch
Bank of Botswana Cuts Key Lending Rate
April 21, 2009
Officials at the Bank of Botswana reduced their key lending rate to 13% from 14% and signaled more future reductions. Cumulative cuts total 250 basis points since the beginning of December. Inflation peaked in November, remains above target, but is expected to trend lower in the medium term in line with the slump in global […] More
Central Bank Watch
Reserve Bank of India Cuts Repo Rate by 25 Basis Points
April 21, 2009
Somewhat unexpectedly, the Reserve Bank of India announced a sixth rate cut since last October, reducing its repo rate by 25 basis points to 4.75% and its reverse repo rate by the same magnitude to a record low 3.25%. The action was taken in connection with the scheduled release of the annual monetary policy review. […] More
Central Bank Watch
Bank of Canada Statement Reflects Considerable Concern
April 21, 2009
Declaring the global recession more intense than in January and credit conditions worse, Bank of Canada officials took the following steps: Cut its overnight rate target to 0.25% from 0.50%. Cut its Bank Rate by 0.25% to 0.50%. Left its deposit rate, which determines the floor for overnight rates, at 0.25%. Declared that the overnight […] More
Central Bank Watch
Swedish Riksbank Eases 50 Basis Points
April 21, 2009
The Swedish Riksbank has been halved to 0.5%. Consensus estimates had looked for a cut to 0.25%, but monetary officials are leery that very low rate levels “could have negative effects on the functioning of the financial markets,” a sentiment shared by policymakers at other central banks. The Riksbank statement leaves open the possibility of […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Better Market Tone Than Monday
April 21, 2009
European stocks have stabilized, and Monday’s sharp FX moves reversed partially. Gilt and bund yields firmed 4 bps and 2 bps. JGB yield settled back 2 bps to 1.46%, as 20-year auction drew decent support. Oil and gold have steadied at $45.92/barrel. TIME magazine says most banks are likely to pass stress tests. The Dax […] More
Currency Markets in the News
Bank Stress Tests
April 21, 2009
U.S. stocks suffered their biggest losses today since March 9, led as then by banking shares. A contributing factor to the plunge was a blogger report from the Turner Radio Network, claiming that a copy of the stress test results in its possession concluded 16 of the 19 largest banks to be effectively insolvent. TRN […] More
