Central Bank Watch
Taiwan Central Bank Leaves 1.25% Rediscount Rate But Will Reabsorb Excess Liquidity
March 25, 2010
The Central Bank of the Republic of China (Taiwan) kept its 56-year low 1.25% rediscount rate steady and did not raise reserve requirements, either. However, officials announced that the reabsorption of excess funds in Taiwan’s financial system will pick up pace in the period ahead and that limits will be placed on property loans. Taiwanese […] More
New Overnight Developments Abroad - Daily Update
Dollar Gave Back Some of Wednesday’s Advance
March 25, 2010
The dollar has lost 0.7% against the kiwi, 0.6% versus sterling, 0.5% against the Canadian and Australian dollars, 0.4% relative to the Swiss franc and yen and 0.3% against the euro. Aid to Greece will be discussed at today’s EU summit, but don’t be surprised if no new game-changing details emerge. In Asia, stocks fell […] More
Deeper Analysis
British Budget Didn’t Wow Markets
March 24, 2010
Government budgets are always pitched to two often-conflicting audiences, the public and investors. When elections are near, pleasing both groups takes on even greater delicacy. British elections will probably be held seven weeks from tomorrow, and U.K. public finances are in shambles in the wake of and 8% drop in nominal GDP since 2007 and […] More
Central Bank Watch
Norwegian Monetary Policy Left Unchanged
March 24, 2010
The key policy rate of the Norges Bank, which was raised 25 basis points each last October and December but not at last month’s meeting, was again kept at 1.75%. Most analysts expected no change. This week’s policy meeting coincided with a new monetary policy assessment, and it is more dovish than the last one. […] More
New Overnight Developments Abroad - Daily Update
Significant Currency Movements Overnight
March 24, 2010
Currencies reflect active risk plays. The yen gained 0.9% against the dollar, which otherwise advanced by 1.1% against the euro and Swissy, 0.9% relative to the kiwi, 0.7% against the Australian dollar, 0.6% against sterling and 0.5% versus the Canadian dollar. The euro got as low as $1.3341, weakest since $1.3212 during the first week […] More
Deeper Analysis
British Budget Preview
March 23, 2010
Chancellor Alistair Darling will deliver a pre-election budget on Wednesday starting at 12:30 GMT. This will be a pre-budget budget, as parliamentary elections are seen likely on May 6 and mandatory by June. Britain seems poised for a change of power, but the margin of victory could be too narrow to secure a majority for […] More
Central Bank Watch
A Ninth and Unexpected Interest Rate Cut in Serbia
March 23, 2010
The National Bank of Serbia implemented its first policy interest rate reduction of 2010. The two-week repo rate cut to 9.0% from 9.5% had not been anticipated. The rate had crested at 17.75% in the final quarter of 2008 but was cut eight times in 2009. The timing and amount of those cuts were 125 […] More
New Overnight Developments Abroad - Daily Update
Dollar Up Slightly
March 23, 2010
On the day after the House approved healthcare reform, the dollar has risen 0.6% against sterling, 0.3% relative to the euro, 0.2% against the yen and Australian dollar and 0.1% against the Canadian, Swiss and New Zealand currencies. Chicago Fed President Evans implied at least six more months before the fed funds target is raised. […] More
Larry's Blog
U.S. Healthcare Reform Passage: Preliminary Musings
March 22, 2010
A debate as polarizing as healthcare reform figured to evoke widely different verdicts in the business press, and so it has. Today’s Wall Street Journal editorial predicts a “very steep” price and reminds readers, “We fought this bill so vigorously because we have studied government health care in other countries, and the results include much […] More
New Overnight Developments Abroad - Daily Update
House Approves U.S. Healthcare Reform Bill by 219-212 Partisan Vote
March 22, 2010
The dollar is mostly flat this Monday, edging up 0.1% against sterling, the Swiss franc and the Canadian dollar. It is unchanged against the euro and off 0.1% relative to the yen. The main changes are gains of 0.6% against the kiwi and 0.5% versus the Australian dollar. Japanese markets were closed in observance of […] More
