Central Bank Watch
A Smaller Brazilian Rate Hike
April 20, 2011
Brazil’s committee of monetary policymakers, known as COPOM, has implemented its sixth rate hike of the cycle, increasing the benchmark Selic rate to 12.0% from 11.75%. In the earlier Great Recession, the Selic rate was cut in five moves from 13.75% at the end of 2008 to 8.75% by July 2009, and that low was […] More
Central Bank Watch
Swedish Repo Rate Raised 25 Basis Points to 1.75% in Expected Move
April 20, 2011
Before today’s action, the Executive Board implemented four 25-bp rate hikes in the second half of 2010 and a fifth increase from 1.25% to 1.5% in mid-February. The Riksbank is among very few central banks that publishes a non-binding expected path for its benchmark interest rate, and this remains unchanged from what officials were expecting […] More
Central Bank Watch
Icelandic Monetary Policy in Limbo
April 20, 2011
For a second meeting in a row of the Sedlabanki Monetary Policy Committee, the 7-day collateralized lending rate has been kept unchanged at 4.25%. From a peak of 18%, the key rate had been reduced fifteen times starting with a 100-bp cut on March 2009 through a 25-bp move on February 2 of this year. […] More
Central Bank Watch
A Sixth Central Bank Rate Hike in Thailand
April 20, 2011
The Bank of Thailand’s one-day repo rate was lifted as expected to 2.75% from 2.5%, and a statement from the central bank left the door open for more hikes. Indeed, this was the sixth done so far, each by 25 bps, following moves last July, August, December, January, and March. Central bank authorities are more […] More
New Overnight Developments Abroad - Daily Update
Stocks, Euro and Commodity Prices Score Solid Gains
April 20, 2011
Financial markets reacted positively to a slew of corporate earnings reports that surpassed expectations. Equities rose 1.8% in Japan, 1.9% in India, 2.2% in South Korea, 2.0% in Taiwan, 1.6% in Hong Kong, 1.7% in Indonesia, 1.4% in Pakistan, 1.1% in Thailand and 1.0% in New Zealand. This strong rise intensified in Europe, with the […] More
