Deeper Analysis
October PMI Results Favor United States Over Euro Zone
November 4, 2010
Purchasing managers survey results were more U.S.-advantageous in October than September and in September than August. The sum of the U.S. minus Euroland manufacturing and services spreads, shown in the right-most column of the table below, was +3.3 in October after minus 0.2 in September and minus 3.2 points in August. Much of this change […] More
Central Bank Watch
No Change Either in Czech Central Bank Rate
November 4, 2010
In a day that already saw central banks in Hong Kong, Indonesia, Britain, and the Euroland leave key interest rates and other policy settings unchanged, the Czech National Bank kept its two-week repo rate at 0.75%, matching what analysts anticipated. In a 5-1 decision, one dissent in favor of a 25-basis point hike was cast, […] More
Central Bank Watch
No Change in Indonesian Interest Rate
November 4, 2010
Indonesia does not rank among those Asian countries where central banks have begun to raise interest rates. Bank Indonesia kept it benchmark policy interest rate at 6.5%, the level since a 25-basis point cut made fifteen months ago. Consecutive monthly reduction from December 2008 until then had cut the key rate by 300 basis points […] More
Central Bank Watch
ECB November Press Conference
November 4, 2010
After leaving interest rates unchanged as expected, ECB President Trichet’s statement didn’t break new ground. Rate settings are accommodative and appropriate. Euroland’s recovery is expected to retain positive momentum in an uncertain environment. Monetary analysis points to contained inflationary pressure in the medium term. Economic analysis shows growth contribution from both exports and domestic demand […] More
Central Bank Watch
Hong Kong Base Rate Again Left at 0.5%
November 4, 2010
The Hong Kong Monetary Authority since 1983 has subordinated any semblance of an independent domestic monetary policy to the priority of fixing the former British colony’s currency at 7.78 per U.S. dollar. To do this, officials have been setting their base rate at a small premium relative to the federal funds rate. Policy meetings in […] More
Central Bank Watch
Bank of England Holds Its Fire in a Somewhat Surprising Move
November 4, 2010
The Bank of England did not raise the GBP 200 billion size of its asset purchase program. This is something which Monetary Policy Committee member Adam Posen had sought at the October meeting, when a three-way 7-1-1 split resulted. At the same meeting, Andrew Sentance dissented in favor of a rate hike to 0.75% from […] More
New Overnight Developments Abroad - Daily Update
All Eyes on the Central Banks
November 4, 2010
The dollar fell by 1.6% against the kiwi, 0.7% relative to the euro, 0.6% against the Aussie dollar, 0.5% versus sterling, 0.4% against the Swiss franc, 0.3% relative to the yen and Canadian dollar, and 0.2% against the Chines yuan. Various Chinese officials complained overnight that more quantitative easing by the Fed will be destabilizing […] More
