Central Bank Watch
Bank of Japan Leaves Policy Rate Unchanged
May 10, 2010
By a unanimous decision in the Bank of Japan’s first policy meeting since its quarterly in-depth economic review, the overnight money rate target was left at 0.1%. It has been at that level since a reduction of 20 basis points in December 2008. There had been one early cut of the same amount in October […] More
Larry's Blog
Some Reflections on an Historic Weekend for Europe
May 10, 2010
The EUR 750 billion package of loans and loan guarantees reminds me of the dollar rescue package of November 1978. Each of these policy responses was anchored around a show of force to the market through a compilation of enormous resources to impose stability. Each had some other elements. In November 1978, the Fed also […] More
Central Bank Watch
Bank of England Policy Remains on Hold
May 10, 2010
An inconclusive election result in which no party won a majority of the British parliament’s 650 seats left the Bank of England with no other choice than to leave its policy settings of a 0.5% Bank Rate and a Gbp 200 ceiling on its asset purchase program as they were. Talks continue between the Conservative […] More
New Overnight Developments Abroad - Daily Update
Markets React Sharply to EUR 750 Billion EU/IMF Sovereign Debt Rescue Package
May 10, 2010
European currencies and commodity sensitive currencies advanced strongly against the yen and dollar. Stocks are much higher. Gold is lower, but oil and other commodities have risen. Sovereign bond yields dropped. The dollar recovered 1.9% against the yen but declined by 2.0% against the euro, 1.7% relative to the Canadian dollar, 1.5% versus the Australian […] More
