Central Bank Watch
Bank of Mexico’s Benchmark Rate Stays at Cyclical Low of 4.5%
October 14, 2011
The Bank of Mexico’s key interest rate was slashed during the Great Recession from 8.25% to 4.5% and has remained at that low since July 2009. A statement on the central bank’s web site notes that global economic prospects have darkened and revises Mexico’s outlook for growth downward, while keeping such positive. Aside from a […] More
Foreign Exchange Insights and Next Week
Next Week
October 14, 2011
G20 finance ministers will be meeting October 15 in Paris. Central bank interest rate meetings are scheduled in Turkey, Norway, Brazil and The Philippines. The Reserve Bank of Australia and Bank of England will publish minutes from policy meetings held early this month. Scheduled U.S. data releases feature the Beige Book, industrial production, consumer and […] More
Foreign Exchange Insights and Next Week
Currency Volatility Presents Another Problem in a Difficult Policy Environment
October 14, 2011
The factors that bolstered the dollar strongly in September abruptly shut down this month. For one thing, a new calendar quarter, and one that oftentimes has not been a good one for the dollar, has begun. Two, a string of better-than-expected U.S. economic data has created more than reasonable doubt that a recession is at […] More
Central Bank Watch
Singapore’s Semi-Annual Monetary Policy Review: An Ease after Three Straight Tightenings
October 14, 2011
The Monetary Authority of Singapore (MAS) targets the currency rather than domestic interest rates and reviews its stance twice a year in April and October. In April 2010, MAS adopted a stronger range for its currency and shifted the S-dollar band from to one implying a flat trend to one allowing for modest and gradual […] More
Central Bank Watch
Chilean Monetary Policy on Hold
October 14, 2011
The Central Bank of Chile released a guarded statement after policymakers left steady the 5.25% benchmark interest rate, Latin America’s third highest after Brazil and Argentina. Officials note that domestic output and demand are moderating — the former more quickly than they had assumed. With overall inflation around 3.0%, core CPI and expected inflation remain […] More
New Overnight Developments Abroad - Daily Update
A More Constructive Tone for the Euro
October 14, 2011
Despite the lack of a big breakthrough in resolving the euro area’s debt crisis and a one-notch Spanish credit rating downgrade by S&P, this week’s more hopeful mood among investors has been maintained. Regional finance ministers meet today as a precursor to a meeting in Paris on the weekend of G20 finance ministers. The dollar […] More
