Deeper Analysis
Double Blow for Canada
September 22, 2011
The Canadian economy is getting hit because of its close trade and financial ties with the United States and unfavorable commodity price trends. Canadian real GDP contracted 0.4% at an annualized rate last quarter when net exports exerted a drag of 5.7 percentage points on the growth rate. The rate of on-year GDP expansion was […] More
Central Bank Watch
South African Reserve Bank Stands Pat for Now
September 22, 2011
South Africa’s repo rate was left at 5.5% for now, where such has been since a 50-basis point cut in November 2010. 650 basis points of easing were administered in nine doses between December 2008 and May 2010. Although today’s statement cites some potential price risks like the rand’s depreciation of more than 14% against […] More
Central Bank Watch
Dovish Czech Central Bank Statement
September 22, 2011
The two-week repo rate was left unchanged at 0.75%, its level since a 25-basis point cut in May 2010. The decision was expected and reached by unanimous vote. At the previous two meetings, by contrast, two of the seven policymakers had dissented in favor of a 25-bp rate hike. From August 2008 through May 2010, […] More
New Overnight Developments Abroad - Daily Update
A Further Spike in Risk Aversion Amid More Signs of Coming Recession
September 22, 2011
Yesterday’s FOMC announcement citing “significant downside risks to the economic outlook” but not including more quantitative easing received a poor market reaction in the United States and has seen sentiment deteriorate considerable further overnight. The dollar rose 2.5% against the kiwi, 2.1% relative to the Australian dollar, 1.8% against the Canadian dollar and Swiss franc, […] More
