Larry's Blog
Oil To Boost On-Year CPI Comparisons Sharply
October 28, 2009
Even when inflation first fell below zero, central bankers around the world confidently predicted a return to the black in the final months of 2009. The factor behind this prediction lies in the extremely sharp 59% decline of crude oil prices between the September 2008 and December 2008 monthly averages. Economists call this kind of […] More
Central Bank Watch
Polish Central Bank Left Key Reference Rate at 3.5%
October 28, 2009
The Narodowy Bank did not change its key and record-low seven-day repo rate of 3.5%. A similar decision was made after meetings in late September, late August, and late July. Previously, reductions were announced of 25 basis points on November 26, 75 bps each on December 23 and January 27, and 25 bps on January […] More
Central Bank Watch
Norway Has Europe's First Central Bank Rate Hike
October 28, 2009
As expected and foreshadowed at the previous policy meeting of the Norges Bank, the key policy rate was increased by 25 basis points to 1.50%, and progress was noted on the unwinding of unconventional supplements to money market liquidity. A statement released by Norwegian monetary authorities speaks of a faster-than-assumed revival of economic activity, core […] More
Central Bank Watch
Malaysian Overnight Policy Rate Left at 2.0%
October 28, 2009
Bank Negara Malaysia retained the cyclically low 2.0% policy interest rate as was expected and as it has done after each policy meeting since a 50-basis point reduction on February 24. That was the third cut following ones of 75 bps on January 21 and 25 bps on November 24. A statement released today by […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Return of Risk Aversion
October 28, 2009
Many signs that risk aversion is back. Stocks fell strongly. Commodity currencies are weaker. The yen is stronger. Bund and gilt yields are down. The dollar climbed 1.2% against the Australian dollar, 1.1% against the kiwi, and 0.6% relative to the Canadian dollar. It also rose 0.3% against sterling but is 0.9% weaker versus the […] More
