Deeper Analysis
North American Data
June 9, 2011
The United States and Canada released April trade figures. The headline U.S. goods and services deficit looked encouraging, contracting $3.1 billion or 6.7%, but the census-basis merchandise trade shortfall only narrowed $15 million (0.03%) and was concentrated in an 11.5% decline in the deficit with OPEC. The deficit with China was $3.5 billion wider in […] More
Central Bank Watch
ECB Invokes Strong Vigilance to Achieve Medium-Term Price Target and Anchor Expected Inflation
June 9, 2011
A statement from the ECB signals a likely increase of interest rates next month. Sufficient justification for a second tightening by July was provided by the Bank staff’s revised price and growth projections, the evolution of which can be seen below. Both estimates for year 2011 were revised higher, especially CPI inflation, which is now […] More
Central Bank Watch
Bank Indonesia: No Interest Rate Change Now
June 9, 2011
Indonesia’s reference rate will stay at 6.75% for at least another month. Today’s was the fourth no-change decision in a row. Bank Indonesia has implemented just one rate hike thus far, which it made in February. 300 basis points of easing were implemented between October 2008 and August 2009 followed by 17 sequential no-change decisions […] More
Central Bank Watch
No Change Made in British Monetary Policy
June 9, 2011
Today’s Bank of England statement added no fresh information. This is typical when, as now, policy changes were not changed. The Bank Rate has been pinned at 0.5% since March 2009. The asset purchase program was last raised in November 2009 by GBP 25 billion to GBP 200 billion, and that limit was exhausted at […] More
New Overnight Developments Abroad - Daily Update
Central Banks in the News
June 9, 2011
The kiwi advanced 1.1% against the dollar following an upbeat statement from the Reserve Bank of New Zealand, which left its Official Cash Rate at 2.5% but spoke about an improved economic outlook. The Swiss franc is relatively weak, dropping 0.5% against the dollar, which otherwise fell 0.1% against the euro and sterling. The dollar […] More
