Central Bank Watch
Czech Monetary Policy Still on Hold
May 5, 2011
The Czech National Bank did not follow last month’s ECB rate hike cue but rather by a 5-2 vote retained a two-week repo rate of 0.75% and respective deposit and Lombard rates of 0.25% and 1.75%. These interest rate levels represent cyclical lows and have been in place since a final cut of 25 basis […] More
Central Bank Watch
ECB Review: Tightening Unlikely Next Month
May 5, 2011
The suspense heading into today’s press conference involved whether ECB officials would use code language — “strong vigilance is warranted” — to suggest a likely second rate hike in early June. The formal statement and press conference Q&A did not sent such a signal, instead repeating language from the April decision that “we will continue […] More
Central Bank Watch
Rate Hikes in The Philippines and Malaysia
May 5, 2011
Bangko Sentral Ng Pilipinas has implemented a second tightening of its monetary policy interest rates, following up on an initial move on March 24. The reverse repo rate for borrowing was lifted 25 basis points to 4.5%, and the repo lending rate was increased to 6.5% from 6.25%. During the recession, rates were cut by […] More
Central Bank Watch
No Changes Made by Bank of England Monetary Policy Committee
May 5, 2011
May is one of the four months of the year in which the Bank of England updates its inflation forecast. Often in the past, policy changes were synchronized with the release of those updates, which occur also in November, August, and February. The Inflation Report is due on May 11, but the Monetary Policy Committee […] More
New Overnight Developments Abroad - Daily Update
Investors Avoiding Risk as Central Banks Meet
May 5, 2011
The yen strengthened beyond 80/USD for the first time since March 18, touching a high of 79.58 and climbing 1.1% on balance. Central banks in Malaysia and the Philippines hiked key interest rates by 25 basis points today. Central banks are also meeting in the U.K., Euroland, and the Czech Republic. Markets are positioned for […] More
