Central Bank Watch
Another Rate Increase in Chile
December 16, 2010
The Central Bank of Chile boosted its overnight rate after every monthly policy meeting since June. With another 25 basis points announced today, the key rate has climbed from 0.5%, the level from July 2009 until mid-June, to 3.25%, but the new rate remains 500 basis points below the last cyclical peak of 8.25% at […] More
Central Bank Watch
Turkish Monetary Policy Mix Modified
December 16, 2010
The Central Bank of the Republic of Turkey is taking an unconventional approach to stem excessive hot money inflows that have put upward pressure on the Turkish lira and which, officials fear, could create financial instability if left unchecked. The main one-week repo rate has been cut for the first time since November 2009, dropping […] More
Central Bank Watch
Swiss Quarterly Monetary Policy Statement
December 16, 2010
The Swiss National Bank left its three-month Libor rate target at 0.25% within a corridor of zero to 0.75%. That’s been the target since March 2009 following reductions of 25 basis points in October 2008, 150 bps in two steps during November 2008, 50 bps in December 2008 and 25 bps in March 2009. In […] More
Central Bank Watch
Reserve Bank of India Sends a Mixed Message
December 16, 2010
The Reserve Bank of India left its policy interest rates unchanged but announced measures to release some primary liquidity in the money market system to alleviate some strains caused by rupee appreciation and sluggish bank deposit growth among other things. In a new statement, monetary officials admonished that such steps as plans to buy government […] More
Deeper Analysis
How the U.S. Current Account Was Funded in the Third Quarter of 2010
December 16, 2010
The U.S. current account deficit widened slightly more than expected last quarter to $127.2 billion, or 3.5% of GDP. That shortfall was over-funded by a $141.1 billion officials capital inflow, which was about $100 billion greater than net official capital inflows in the second quarter. Moreover, high-quality long-term capital inflows climbed steeply to $116.7 billion […] More
New Overnight Developments Abroad - Daily Update
A Day of Data and Meetings
December 16, 2010
Ecofin, the group of European finance ministers, are meeting in Brussels to solidify response to euro area debt crisis. No much new is expected. Central bank policymakers in India, Switzerland, Turkey and Chile have scheduled announcements. The Swiss National Bank and Reserve Bank of India left key rates steady at 0.25% and 6.25%. The RBI […] More
