Larry's Blog
Dollar Free-fall Phobia
October 8, 2009
Today’s financial press has a nice juxtaposition between a front-page article in the Financial Times (“Obama’s critics pounce on falling dollar as fears grow over currency”) and an Op-Ed article in the Wall Street Journal by the former chief economist of Bear Stearns, David Malpass (“The Weak-Dollar Threat to Prosperity”). Articles like these are symptomatic […] More
Central Bank Watch
Peruvian Central Bank Reference Rate Held at 1.25%
October 8, 2009
A statement from the Central Reserve Bank of Peru today implied that the benchmark interest rates of 1.25%, a five-year low, will be retained for quite some time longer so long as inflation and expected inflation behave has officials expect. Each of these is still trending downward. CPI inflation ended 2008 at an on-year pace […] More
Central Bank Watch
ECB Press Conference Review: Nothing Very Illuminating
October 8, 2009
After holding an off-site meeting in Venice, the ECB Governing Council left its key interest rates unchanged, with a 1.0% refinancing rate surrounded by a deposit rate of 0.25% and a marginal lending rate of 1.75%. Those levels have been in place since May 7. From exactly a year ago to the final cut of […] More
Central Bank Watch
Bank of England: No Changes
October 8, 2009
The Monetary Policy Committee releases a short statement with no commentary about economic conditions after deciding to retain its benchmark rate at 0.5% and to make no further adjustments to the asset buying plan. The key interest rate has been at 0.5% since March. That was when a Gbp 75 billion asset purchase program was […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Dollar Broadly Lower And Gold Gained Further
October 8, 2009
The dollar has lost 1.5% against the Australian dollar, 0.7% versus sterling, 0.6% relative to the euro, kiwi, and Swiss franc and 0.5% against the Canadian dollar. Bank of England policy was not changed. The Bank rate holds at 0.5%, and the asset buying ceiling through November stays at Gbp 175 billion. Markets await the […] More
