Central Bank Watch
Lessening Urgency to Tighten Turkish Interest Rates
July 15, 2010
A new statement from the Central Bank of the Republic of Turkey kept the mantra that current policy interest rate levels can be maintained for “some time” and that low levels are probable for “a long time.” The new benchmark one-week repo rate thus stays at 7.0%, and the old target instrument, the overnight borrowing […] More
Deeper Analysis
Raising Very Low Central Bank Rates Easier Said Than Done
July 15, 2010
Having followed Bank of Japan policymaking since before Japan’s financial crisis, I was suspicious when consensus forecasts surfaced several months ago that the Fed funds rate would rise later this year. I’m even doubtful about 2011. A U.S. recovery had begun after mid-2009, and GDP growth accelerated to a 5.6% annualized pace in 4Q09 and […] More
Central Bank Watch
Unchanged Central Bank Policy in The Philippines Continues
July 15, 2010
Several Asian central banks, but not yet Bangko Sentral NG Pilipinas, have started to raise their interest rates. The Filipino overnight borrowing and lending rates were left at 4% and 6%, respectively, where such have been since cuts of 25 basis points in July 2009. Those reductions had been the eighth by the central bank […] More
Central Bank Watch
No Surprises from the Bank of Japan
July 15, 2010
By a unanimous 9-0 vote, the fully-staffed BOJ Policy Board kept its overnight uncollateralized interest rate at 0.1% and promised to maintain an “extremely accommodative financial environment” to combat “the critical challenge of overcoming deflation.” The rate has not been modified since a cut of 20 basis points in December 2008, nor has it exceeded […] More
New Overnight Developments Abroad - Daily Update
Asian Stocks and Dollar Are Weaker
July 15, 2010
The dollar fell by 0.7% against the euro, 0.6% against the Swiss franc and sterling and 0.2% versus the yen and Canadian dollar. The U.S. currency firmed 0.2% against the kiwi and 0.1% against the yuan and Australian dollar. Equities in the Pacific Rim lost 1.7% in China, 1.5% in Hong Kong, 1.1% in Japan, […] More
