Central Bank Watch
Central Bank of Brazil Implements Second Rate Cut Since End-August
October 19, 2011
Although expected, a second 50-basis point rate cut to 11.5% is not without controversy because inflation and credit growth now exceed their targets, expected inflation is climbing, and the labor market is comparatively tight. Consumer prices rose 7.3% in the year to September versus a target range of 2.5 – 6.5%. Credit and lending are […] More
Central Bank Watch
Norwegian Policy Rate Left at 2.25%
October 19, 2011
For the fourth straight time and as expected, the Norges Bank Executive Board left its policy interest rate at 2.25%. Moreover, the policy bias was changed from tightening to neutral. In June, officials had projected a likely rate range until October of 2.25-3.25%, but today’s statement identified the likely range between now and March 2012 […] More
Central Bank Watch
Thai Monetary Tightening on Hold
October 19, 2011
The Bank of Thailand had previously raised its policy interest rate by 25 basis points each in July 2010, August 2010, December 2010, January 2011, March 2011, April 2011, June 2011, July 2011, and August 2011. The rate altogether increased from 1.25% to 3.5% between mid-2010 and August 2011. But for the first time in […] More
New Overnight Developments Abroad - Daily Update
Hope Ahead of EU Summit
October 19, 2011
Despite a two-notch downgrade of Moody’s Spanish sovereign debt rating to A1 from Aa2 and a workers strike in Greece, markets today have shown more hope than despair. Several key U.S. economic indicators will be released later, with a potential to change that optimism. The euro hit an overnight high of $1.3870 and is currently […] More