Central Bank Watch
U.S. Unemployment, CPI Inflation, Stock Prices and Fed Policy
May 19, 2010
Although somewhat more upbeat about economic prospects in the United States, minutes released today from the April 28th FOMC meeting depict a hesitancy to raise interest rates soon or to sell off mortgage-backed securities before rates have begun their lift-off. On several criteria, markets that are pricing in a one in three probability of a […] More
Central Bank Watch
No Change in Serbian Key Interest Rate But Bias Remains Downward
May 19, 2010
Officials at the National Bank of Serbia left the two-week repo rate at a record low of 8.0% at today’s fortnightly policy meeting. Three cuts of 50 basis points apiece have already been implemented in 2010 at meetings on march 23, April 8 and May 11, and those easings followed eight cuts spaced out in […] More
New Overnight Developments Abroad - Daily Update
Risk Aversion Surges Following Unilateral German Ban on Short-Selling
May 19, 2010
Stocks are plunging in response to yesterday’s unilateral action by German regulators to ban short-selling of euro area government debt and credit default swaps. The ban extends to end-1Q11. German Chancellor Merkel seeks broader Euroland action, endorsing need for a financial transaction tax. Equities tumbled 2.5% in Singapore, 2.7% in India, 3.7% in Indonesia, 1.9% […] More
