Deeper Analysis
Comment on Price Targeting
October 19, 2010
One idea reportedly being explored at the Federal Reserve would be to target a general price level. Many central banks target inflation, which is the rate of change, or first derivative, in a general price index. The Fed is not one of them, but the desired pace of price change has been informally expressed by […] More
Central Bank Watch
Bank of Canada Keeps 1.0% Target Interest Rate and Releases Dovish Statement
October 19, 2010
Canadian monetary policy tightening was paused as expected after three consecutive 25-basis point increases of the overnight target rate implemented June 1, July 20 and September 8. Projected growth in real GDP was revised down to 3.0% for 2010 from forecasts of 3.5% made in July and 3.7% made six months ago. The growth projection […] More
Central Bank Watch
People’s Bank of China Lifts Key Interest Rates: First Move of Cycle
October 19, 2010
China’s one-year lending rate and one-year deposit rate were raised by 25 basis points each, effective October 20, to 5.56% and 2.5%, respectively. This first rate increase since December 10, 2007 is subject to varying inferences. Enhancing the state of confusion over today’s action, Chinese central bank officials over the past month had been expressing […] More
New Overnight Developments Abroad - Daily Update
Geithner Remark Lends Dollar Slight Support
October 19, 2010
The dollar rose 0.6% against sterling, 0.4% versus the kiwi, 0.3% relative to the Canadian dollar, 0.2% against the yen, euro and Australian dollar, and 0.1% against the Swissy. The yuan is steady against the dollar. Today marks the 23rd anniversary of the Dow’s 22.6% crash of 1987. Conditions are calm. Stocks advanced 2.1% in […] More
