Central Bank Watch
Peruvian Reference Rate Left at Low 1.25%
December 10, 2009
The Central Reserve Bank of Peru retained a 1.25% benchmark interest rate for a fourth consecutive meeting. The rate had previously been cut in seven straight months by a total of 525 basis points from 6.5%. A statement by monetary officials said that no change in that level is presently foreseen unless the good inflation […] More
Deeper Analysis
Better-Than-Forecast U.S. and Canadian Trade Figures in October
December 10, 2009
Canada and the United States do a huge amount a trade with one another, so their overall trade positions rarely improve together in the same month or, for that matter, worsen in tandem. The United States is Canada’s largest export and import market. Canada is the largest U.S. export market and the second largest origin […] More
Central Bank Watch
Swiss National Bank Turns Off Quantitative Measure
December 10, 2009
After releasing a similar assessment of the Swiss economy to it prior review in September, the Swiss National Bank left its target interest rate on three-month Libor unchanged but discontinued its purchases of Swiss franc-denominated bonds issued by private-sector borrowers, a measure that was introduced nine months ago. Monetary officials also reaffirmed their determination not […] More
Central Bank Watch
Brazilian Selic Rate Left at 8.75% As Expected
December 10, 2009
The Central Bank of Brazil left its benchmark Selic rate at 8.75% where such has been since a 50 basis point cut on July 22nd. There were four prior cuts in the first half of 2009 of 100 bps in January, 150 bps in March, and 100 bps each in April and June. Altogether, rates […] More
Central Bank Watch
Bank of England Made No New Policy Moves This Month
December 10, 2009
The Monetary Policy Committee issued a short statement that the Bank Rate is being held at 0.5%, the asset purchase plan total will remain at Gbp 200 billion, and that the total will have been bought within two more months. The rate has been 0.5% since March, and Gbp 185 billion had been purchased as […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Rebound in Commodity-Sensitive Currencies
December 10, 2009
The U.S. dollar fell 1.3%, 0.9%, and 0.5% against the New Zealand, Australian and Canadian dollars. The rand strengthened, too. The greenback also lost 0.2% against sterling and 0.1% to the euro and Swiss franc, but it’s 0.5% higher against the yen. Stocks fell 1.4% in Japan, 1.5% in Taiwan, 0.6% in Thailand and 0.7% […] More
Central Bank Watch
Bank of Korea Leaves Benchmark Rate at 2.0%
December 10, 2009
As expected, the 2.0% central bank rate was retained, and the accompanying statement reiterated that the “accommodative” policy stance would be continued “for the time being.” The last cut was done ten months ago in February and culminated a decline of 325 basis points in just four months. South Korean growth has been brisk, with […] More
