Central Bank Watch
Bank of Israel Key Rate Left Unchanged
July 25, 2011
Israel’s main central bank rate will stay at 3.25% for at least another month. It was raised from a trough of 0.5% by 75 basis points in 2009, 75 bps in 2010, and 125 bps earlier this year. The most recent change was enacted in May, a gain of 25 bps. A statement on the […] More
Deeper Analysis
How Will Markets React if the United States Government Defaults?
July 25, 2011
Nobody really knows the answer to the above question with certainty. It’s a mystery. Governments that defaulted in the past have been punished but not with equal severity, and a U.S. default would contain many unique elements. The United States is the world’s biggest economy. The dollar dominates reserve asset portfolios and has no serious […] More
New Overnight Developments Abroad - Daily Update
No Progress in U.S. Debt Ceiling Talks
July 25, 2011
Risk-on trading has returned. The Swiss franc and yen rose 1.8% and 0.5% against the dollar, which has also slipped 0.2% against the euro and 0.1% relative to the Canadian and New Zealand dollars. The dollar has firmed 0.1% against sterling and is unchanged versus the yuan. Gold leaped 1.2% to $1620.20 per ounce. No […] More
