Central Bank Watch
Central Reserve Bank of Peru Tightens Again
April 7, 2011
As analysts expected, officials at Peru’s central bank lifted their reference interest rate by another 25 basis points just as they had done each month of this year’s first calendar quarter. That cumulative one percentage point of tightening, which leaves the key rate at 4.0%, augments five rate hikes last year, respectively of 25 basis […] More
Central Bank Watch
European Central Bank Tightens for First Time Since July 2008
April 7, 2011
The ECB as expected raised its refinancing rate by 25 basis points to 1.25%. Such had been at 1.0% since May 2009. The deposit rate and marginal lending rate were also lifted by 25 basis points to 0.50% and 2.0%, thus retaining a symmetrical 75 basis points spread below and above the refinancing rate. President […] More
Central Bank Watch
Bank of Japan Meeting Review: Continuing Stimulus
April 7, 2011
The Bank of Japan met over two days for a total of six hours and 52 minutes, deciding unanimously to 1) promote a 0-0.1% overnight money rate target through its daily short term operations and 2) introduce a new facility to provide financial institutions located in the disaster-stricken region with longer-term funds (up to a […] More
Central Bank Watch
Bank of England: No Changes
April 7, 2011
The Monetary Policy Committee released its standard statement when not making any changes. The Bank Rate stays at 0.5%, its level since March 2009. The asset purchase program ceiling remains at GBP 200 billion. It was last raised in November 2009 and reached that ceiling by end-January of 2010. The statement reveals to clues about […] More
New Overnight Developments Abroad - Daily Update
Portugal Asks for a Bailout
April 7, 2011
Investors have a lot to watch: Details of Portuguese bailout, which is said to start out as a request for about EUR 75 billion but likely to reach EUR 90 billion. Terms should be similar to those given earlier to Greece and Ireland. A side issue is whether pressure now escalates on Spain, whose economics […] More
