Deeper Analysis
British GDP Growth
January 25, 2011
The U.K. economy contracted 0.5% (about 2.0% annualized) in the final quarter of 2010 following four straight quarters of post-recession expansion. Analysts had anticipated a 0.3-0.5% advance instead, down from 0.7% in 3Q and 1.1% in 2Q. Over those two quarters, GDP had risen at a robust annualized pace of 3.7%. Unseasonably bad weather depressed […] More
Central Bank Watch
A Seventh Rate Increase in India
January 25, 2011
The Reserve Bank of India today implemented another round of 25-basis point hikes in its key repo lending rate to 6.5% and its reverse repo borrowing rate to 5.5%. Officials also retained their 6.0% reserve requirement. Today’s action was influenced by an acceleration of WPI inflation to 8.43% in December from 7.48% in November, which […] More
Central Bank Watch
Bank of Japan Updates Forecasts and Leaves Key Rate Range at Zero-0.1%
January 25, 2011
Following five hours and 53 minutes of deliberations over two days, the BOJ’s Policy Board retained a 0.0-0.1% target range on overnight money rates in a unanimous 9-0 vote. The target had been eased in early October from a point estimate of 0.1% where such had been since December 2008. The overnight target has not […] More
New Overnight Developments Abroad - Daily Update
Pound Depressed by British GDP Contraction
January 25, 2011
Sterling fell 1.2% overnight against the dollar, which otherwise shows gains of 0.3% against the Canadian and Australian dollars, no change versus the euro, and drops of 0.3% relative to the Chinese yuan and Swiss franc and 0.2% against the yen and kiwi. Stock prices were mixed in the Pacific Rim, with rises of 1.2% […] More
