Central Bank Watch
Hong Kong and Serbian Interest Rate Decisions
November 5, 2009
Hong Kong domestic monetary policy is subordinated to currency policy, which since 1983 has pegged the Hong Kong dollar to its U.S. counterpart at 7.75. Following the Fed’s decision yesterday to leave the Fed funds target unchanged at 0-0.25%, it was a no-brainer that the Hong Kong Monetary Authority would leave its base rate unchanged […] More
Central Bank Watch
Czech National Bank Leaves Two-Week Repo Rate Unchanged
November 5, 2009
The majority decision to retain a 1.25% benchmark interest rate matched the unchanged ECB rate of 1.0% announced today, but three of seven Czech monetary policymakers dissented in favor of a 25-basis point cut to 1.0%. That was one more dissenter than at the prior policy meeting on September 24th, which also had opted for […] More
Central Bank Watch
ECB Review: New Ground Not Broken
November 5, 2009
The ECB left its deposit, refinancing and marginal lending rates at 0.25%, 1.0%, and 1.75% as expected. Those levels have been in place since May, and today’s decision was anticipated. Seven reductions of the refinancing rate were implemented between October 2008 and May 2009 spaced as follows: 50 bps in October 2009, 50 bps in […] More
Central Bank Watch
Central Bank of Iceland Changes Interest Rates
November 5, 2009
A full-percentage point reduction of Iceland’s seven-day collateral lending rate to 11% from 12% overstates today’s easing of monetary policy according to a statement from Icelandic monetary officials. This was one of several rate changes to be implemented, some of which were up. The main intent of the moves was to bring the whole constellation […] More
Central Bank Watch
Filipino Monetary Policy Not Changed
November 5, 2009
As expected, the Central Bank of the Philippines retained a 4.0% rate for overnight borrowings. It has been that level since a 25-basis point cut in late August. Altogether, the rate was reduced by 225 basis points since an initial cut in early December 2008. A new statement from the central bank called the 4.0% rate […] More
Central Bank Watch
Bank of England Keeps Foot on the Accelerator
November 5, 2009
The Bank of England Left its Bank Rate at 0.5%, the level since March and down from 5.0% since the start of October 2008 and a peak of 5.75% prior to December 2007. Extended the purchases of government and corporate debt by Gbp 25 billion to Gbp 200 billion, to be completed by February. A […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Stocks Down and Dollar Up
November 5, 2009
The dollar climbed 1.1% against the kiwi, 0.5% versus the yen, 0.4% against the Australian dollar, 0.2% relative to sterling and the Swiss franc, and 0.1% against the euro and Canadian dollar. New Zealand’s central bank governor Bollard again complained that excessive kiwi strength will hurt exports. The Nikkei lost 1.3% following slide of U.S. […] More
