Deeper Analysis
FOMC
June 23, 2010
One source of the dollar’s strength against the euro since late November has been a perception that the Fed will begin raising interest rates well ahead of the ECB. If this premise were prescient, it should only be meaningful from a market standpoint if the onset of Fed tightening were six to nine months away. […] More
Central Bank Watch
Further Norwegian Monetary Tightening Delayed
June 23, 2010
The policy interest rate of the Norges Bank was kept at 2.0%, and a released statement from the Executive Board of the central bank expressed the view that the rate “should be held at the current level for a period and then gradually raised towards a more normal level.” A range of 1.5-2.5% was projected […] More
Central Bank Watch
Market Quotes at Previous FOMC Meetings
June 23, 2010
In response to concerns about tighter Chinese policies and Europe’s sovereign debt problems, the global environment looks riskier than when the FOMC last met in late April, and that cloud is reflected in market movements over the past eight weeks. The 10-year Treasury yield declined 63 basis points. The last time when the FOMC met […] More
Central Bank Watch
Icelandic Central Bank Rates Cut 50 Basis Points
June 23, 2010
Sedlabanki has implemented the fourth rate cut of 50 bps this year and the tenth reduction since March 2009. The seven-day lending rate is now 8.0%, 1000 basis points lower than such had been from October 2008 until March 2009 after securing aid from the IMF. The six reductions in 2009 had totaled 800 basis […] More
Central Bank Watch
Czech National Bank Leaves Interest Rates Unchanged
June 23, 2010
As expected and following an unexpected easing on May 7 of 25 basis points, the CNB retained a 0.75% target for its two-week repo, flanked by a discount rate of 0.25% and a Lombard Rate of 1.75%. The vote to ease in May had been split 4-2 and was the first change of any sort […] More
New Overnight Developments Abroad - Daily Update
Bank of England Minutes Contain a Surprise Dissenting Vote
June 23, 2010
The dollar fell 0.7% against sterling and by 0.8% against the kiwi. Other dollar moves were small: up 0.3% against the loonie but down 0.2% against the yen and 0.1% relative to the euro and Aussie dollar. The Swiss franc is steady. So is the yuan after climbing 0.4% on Monday and retreating 0.2% on […] More
