Central Bank Watch
Brazilian Selic Interest Rate To Stay at 8.75%
March 17, 2010
A narrowly split 5-3 vote by the Central Bank of Brazil’s policymaking committee, COPOM, decided to keep the key Selic rate at a record low 8.75%. Analysts had also been divided over whether an initial rate increase might occur this month in light of a strengthening recovery and higher inflation in the early going of […] More
Larry's Blog
Interrelated Themes Clash in World Economy
March 17, 2010
Differences in the economic policy priorities of governments are generally rooted in bad historical experiences. Top attention is placed on preventing whatever is most feared. Post-WWI hyperinflation in Germany evaporated the lifetime savings of households and continues to get blamed for creating conditions that promoted political instability, then the rise of Hitler and ultimately ruin […] More
Central Bank Watch
Central Bank of Iceland Cuts Rates by 50 Basis Points
March 17, 2010
The eighth Icelandic rate cut in twelve months was announced today, reducing the seven-day lending rate by a further 50 basis points to 9.0%, exactly half of the peak level from October 2008 to March 2009. A statement from monetary officials reads similarly to that of January 27 when officials cut by rates also by […] More
Central Bank Watch
A Modest BOJ Stimulus
March 17, 2010
After meeting for five hours and 57 minutes over two days, the Bank of Japan Policy Board took two votes that resulted in A unanimous 7-0 decision to leave the uncollateralized overnight rate at 0.1%. Such has been 0.1% since December 2008, merely 40 bps below the prior cyclical high of 0.5%. A 5-2 vote, […] More
New Overnight Developments Abroad - Daily Update
Stocks Rally
March 17, 2010
Stocks advanced 1.2% in Japan, 2.2% in China, 2.1% in South Korea, 3.3% in Indonesia, 1.8% in Thailand, 1.7% in Hong Kong and 1.2% in Australia. In Europe, the German Dax is 0.6% firmer, and the Paris Cac and British Ftse are each 0.4% higher. Currency movements also reflect a greater preference for risk in […] More
