Deeper Analysis
Euroland’s Recovery Not Fading Away
March 29, 2010
The oft-repeated view of the ECB Governing Council is that a recovery from a severe economic contraction remains “on track” but that such will be “moderate,” “uneven,” and “uncertain.” Those adjectives imply an upturn that 1) will be weaker than the growth of aggregate supply, 2) will not shared by every EMU country or equally […] More
Central Bank Watch
Bank of Israel Rate Lifted 25 Basis Points
March 29, 2010
The Bank of Israel raised its key borrowing rate to 1.5% from 1.25% as expected. In doing so, Israel joined Australia as the only economies with four rate hikes so far, and all four moves by each central bank have been by increments of 25 basis points. Today’s move, however, was the first one in […] More
Central Bank Watch
Another 25-Basis Point Hungarian Central Bank Rate Cut
March 29, 2010
The Mayar Nemzeti Bank implemented its fourth straight 25-bp interest rate cut to 5.5% and reiterated the assertion that further cuts will be possible only if financial market risk perceptions allow such. Weak growth and the forecast of sub-target inflation next year are not sufficient conditions. Currency behavior is a litmus test for risk perceptions, […] More
Central Bank Watch
National Bank of Romania Implements an Eighth Rate Cut
March 29, 2010
Romania’s central bank monetary policy interest rate has been cut to 6.5% from 7.0%. This was the third monthly reduction in a row. Romania got a late start easing its stance because of stubbornly high interest rates and political risks. The benchmark rate had been at a lofty 10.25% from July 2008 into February 2009. […] More
New Overnight Developments Abroad - Daily Update
Dollar and Yen Weaker Versus European and Commodity-Sensitive Currencies
March 29, 2010
The dollar is unchanged against the yen. Both have fallen 1.0% against the Australian dollar, 0.8% relative to the kiwi, 0.6% against the euro, 0.5% against the Canadian dollar and sterling, and 0.4% relative to the Swiss franc. These moves were in continuing reaction to an accord among EU leaders to involve the IMF in […] More
