Central Bank Watch
Chilean Monetary Tightening Paused Temporarily
July 14, 2011
The Bank of Chile did not raise its key interest rate for just the second time in 14 consecutive monthly meetings, the other time being last January. The rate will stay at 5.25%, 475 basis points higher than the recessionary low of 0.5% but 300 basis points below the last cyclical peak of 8.25%. A […] More
Deeper Analysis
Scaled Back Growth Expectations
July 14, 2011
The Federal Reserve is not alone in trimming economic growth projections. Private analysts have also set their sights lower lately. The figures in the table below are based on the results of surveys taken in March and July of 18 forecasters conducted and compiled by The Economist. The changed view of the United States is […] More
Central Bank Watch
Bank of Korea Holds Policy Steady
July 14, 2011
South Korea’s base rRate, which underwent five 25-basis point hikes previously between July 2010 and June 2011, was left at 3.25% this month. A new statement from officials expresses optimism about Korean growth prospects, concern about risks to inflation and determination to pursue price stability above other goals. June CPI inflation of 4.4% was above […] More
New Overnight Developments Abroad - Daily Update
Moody’s Places U.S. Sovereign Debt on Review
July 14, 2011
Wednesday’s market respite was short-lived as the Moody’s rating agency announced that America’s AAA sovereign debt designation would be reviewed for a possible downgrade. The dollar continues to trade below JPY 80.0, prompting Japanese verbal intervention. There was even some market speculation that officials might have done some real intervention overnight to soften the yen. […] More
