Central Bank Watch
Chilean Monetary Policy Statement Stresses Uncertain Outlook
March 18, 2010
The massive earthquake and tsunami on February 27 was a game changer. An increase of the 0.5% monetary policy rate this month had never seemed likely, but an increase during 2Q10 had looked probable since Chilean growth was developing more quickly than anticipated. Real GDP in 4Q09 had been 2.1% greater than a year earlier […] More
Central Bank Watch
Turkey’s Dovish Monetary Policy Bias Starts to Waver
March 18, 2010
Turkey experienced one of the world’s sharpest drop in central bank interest rates. For 13 consecutive meetings starting with a 50-basis point reduction in November 2008 and ending with a 25-bp cut in November 2009, the overnight borrowing rate was slashed from 16.75% to 6.5%, and officials have affirmed in each of the ensuing four […] More
Central Bank Watch
Sri Lankan Monetary Policy Left on Hold
March 18, 2010
As expected, no changes were announced in the Central Bank of Sri Lanka’s 7.5% repo rate or its 9.75% reverse repo rate. Those key interest rates were reduced by 300 basis points and 225 bps, respectively, during 2009 but not since November. The next policy review is scheduled for April 22. A statement released by […] More
Deeper Analysis
How the U.S. Current Account Deficit was Funded Last Quarter and in 2009
March 18, 2010
The table below compares funding of the U.S. current account deficit in 4Q09 to the three prior quarters and its funding in calendar 2009 to 2008. The deficit widened to 3.2% of GDP in 4Q from roughly 2.9% in the first three quarters of 2009 and the year as a whole. The 2008 current account […] More
New Overnight Developments Abroad - Daily Update
Fresh Worries Over Greek Debt Problems
March 18, 2010
The euro fell 0.5% against the dollar as a German government officials expressed reservations about giving direct aid to Greece and suggested that maybe Athens should instead seek help from the IMF. Greek PM Papandreou urged fellow EU governments to lend a hand. The Swissy moved in lock-step with the euro, and the dollar also […] More
