Deeper Analysis
Chronology of Prior G-7 Policy Coordination Meetings
February 3, 2010
The finance ministers and central bank chiefs of the Group of Seven (U.S., Japan, Germany, Britain, France, Italy and Canada) hold their first scheduled meeting in five months on February 5-6 amid continuing high anxiety about the global economy and feelings that the this group’s role has been marginalized by the G-20, which also includes […] More
Central Bank Watch
Norway’s Central Bank Rate Left Unchanged
February 3, 2010
The conventional wisdom among central bank watchers coming into this week was that policy rates would be lifted by 25 basis points in Australia to 4.0% and Norway to 2.0%. Neither central bank complied. A released statement from the Norges Bank does not mention if the option of hiking a third time was mentioned, meaning […] More
Central Bank Watch
Bank of England Preview
February 3, 2010
The retention of a 0.5% British Bank Rate was never in doubt. Bank of England officials no doubt hoped for a stronger case than now exists against extending their Gbp 200 billion asset purchase plan. Most central banks have begun the shift away from ultra-easy monetary policy, some even raising key rates and many others […] More
Central Bank Watch
ECB Preview
February 3, 2010
This will not be a significant and newsworthy monthly meeting of the ECB Governing Council. Only three weeks have passed since the last one, and officials prefer to make headlines in those months that coincide with new quarterly staff forecasts, that is, March, June, September and December. Nothing has been said by an ECB official […] More
Deeper Analysis
U.S./Euroland PMI-Services Differential Narrowed at Start of 2010
February 3, 2010
Last month, the U.S. economy improved relative to Euroland in service-sector industries as well as manufacturing. As the dollar strengthened, such was the sense of the two economies that investors had perceived. Both regions remain in a recovery stage as confirmed by the above-50 readings shown below in all four PMIs last month. The U.S. […] More
Central Bank Watch
A Seventh Rate Cut in Romania
February 3, 2010
The National Bank of Romania sliced its benchmark monetary policy interest rate by another 50 basis points to 7.0%. This was the second reduction of 2010 following one on January 5. During 2009, there were cuts of 25 basis points in February, two of 50 bps a piece in June, a fourth of 50 bps […] More
New Overnight Developments Abroad - Daily Update
January Purchasing Manager Indices Released
February 3, 2010
The dollar has lost 0.4% against the Australian dollar, 0.3% relative to the kiwi, euro and Swiss franc, and 0.1% against sterling and the Canadian dollar. A 0.1% uptick against the yen further signifies a slight return to a risk play. Canada’s finance minister said that currencies will be on the agenda when G-7 finance […] More
