Central Bank Watch
Another Chilean Monetary Tightening
April 12, 2011
The Central Bank of Chile’s overnight interest rate has been raised by an as-expected 50 basis points to 4.5%. There has been an increase at ten of the last eleven monthly meetings of the Policy Board. The exception was in January. The last two increases have been by 50 basis points, as were the first […] More
Larry's Blog
Some Popular Misconceptions
April 12, 2011
The Federal Reserve is a whipping boy of the disgruntled. Critics of the Federal Reserve often accuse monetary officials of deliberately depreciating the dollar through its quantitative easing. A weaker dollar in turn is popularly associated with the rise in oil prices, and the resulting squeeze on household disposable income and corporate profit margins could […] More
Central Bank Watch
Unchanged Bank of Canada Policy
April 12, 2011
The overnight target interest rate in Canada has been left at 1.0% as most forecasters predicted and will continue to be flanked by a 0.75% deposit rate and a 1.25% Bank Rate. The continuing strength of the Canadian dollar was mentioned twice in an otherwise upbeat statement, which upgrades the global economic recovery to “more […] More
Central Bank Watch
No Change in Indonesian Benchmark Interest Rate
April 12, 2011
Indonesian monetary officials continue to drag their feet compared to their counterparts tightening policy elsewhere in Asia. During the Great Recession, the benchmark interest rates was slashed by 300 basis points (9.5% to 6.5%) from January through August of 2009. Seventeen monthly meetings of retained 6.5% followed, then a 25-basis point increase enacted in February […] More
Central Bank Watch
South Korean Monetary Policy Unchanged This Month
April 12, 2011
The Bank of Korea’s seven-day repo rate was kept at 3.0% as most pundits expected. Starting last July, such had previously been raised four times by 25 basis points each, most recently at this year’s March meeting. A statement on the central bank website warns that policy in the future will put greater stress on […] More
New Overnight Developments Abroad - Daily Update
Stocks Down on a Busy Tuesday
April 12, 2011
Equities fell 1.7% in Japan and Taiwan, 1.5% in Australia, 1.6% in South Korea, 1.3% in Hong Kong, 1.2% in Malaysia, 0.7% in Indonesia, Singapore and the Philippines, and 1.0% in India. In Europe, the Paris Cac, German Dax and British Ftse have lost 1.1%, 1.0% and 0.9% so far. The dollar is mixed, with […] More
