Central Bank Watch
A Second Polish Rate Hike
April 5, 2011
Poland’s central bank reference rate was hiked today to 4.0% from 3.75%. An initial 25-basis point increase on January 19 was the first tightening since June 2008. From November 2008 to June 25, six easings cumulating to 250 basis points were implemented. A statement today from officials justified today’s action as necessary to ensure that […] More
Central Bank Watch
Australian Interest Rate Meeting Review
April 5, 2011
Australia’s Official Cash Rate will remain at 4.75% for at least another month. This decision by the RBA Board was expected. The key interest rate had previously been raised seven times, each by 25 basis points, between October 2009 and November 2010. A statement from the Reserve Bank of Australia released after today’s meeting reiterated […] More
Central Bank Watch
China’s Fourth Short-Term Interest Rate Hike
April 5, 2011
The People’s Bank of China raised the one-year lending rate by 25 basis points to 6.31% and the one-year deposit rate by the same magnitude to 2.25%. Three earlier increases, all by 25 basis points as well, were announced on October 19, December 25, and February 8. Like December 25 (Christmas) and February 8 (Chinese […] More
Deeper Analysis
Euroland PMI-Services Score Pulled Almost Even with U.S. PMI in March
April 5, 2011
Just a tenth of a point separated the U.S. and Euroland service sector purchasing manager readings in March. That gap was down from 2.9 points in February and 3.5 points in January, and such constituted Euroland’s best relative position in six months. Germany (60.1) and France (60.4) had significantly better readings than America’s score of […] More
New Overnight Developments Abroad - Daily Update
Night of Surprises and Omens
April 5, 2011
The People’s Bank of China has implemented a fourth increase of its lending and deposit rates, lifting such in an unexpected move by 25 basis points to 6.31% and 3.25%. Prior increases were done in October, December and January. There have also been nine advances so far of the central bank’s reserve requirements, most recently […] More
