Archive for July 21st, 2010

Central Bank Watch

Smaller-Than-Expected Brazilian Central Bank Rate Hike

July 21, 2010

Policymakers at the Central Bank of Brazil, known as COPOM, lifted their key Selic rate for a third time but by a lesser 50 basis points to 10.75%.  Analysts were predicting a move of 75 basis points like those announced on April 28 and June 9.  Nonetheless, the cumulative advance of 200 basis points thus […] More

Deeper Analysis

Balancing the Twin Fed Policy Mandates

July 21, 2010

The Federal Reserve is a creation of Congress and mandated by that legislative branch to promote two objectives: price stability and maximizing employment.  Because of this accountability to Congress, the Fed Chairman is required to testify before the banking committees of the Senate and House twice a year.  These appearances typically occur in February and […] More

New Overnight Developments Abroad - Daily Update

Wednesday Spotlight on Central Banks

July 21, 2010

The euro fell 0.7% against the dollar, 0.5% against sterling, and over 1% against the yen.  Concern about Friday‚Äôs stress test results, which have been discredited already in the eyes of many investors, continues to rattle the European common currency even as European stocks advance.  Commodity sensitive currencies are firmer.  The loonie, kiwi, and Aussie […] More