Central Bank Watch
No Change in Australian Official Cash Rate
March 5, 2012
The Monetary Policy Board retained a 4.25% Official Cash Rate (OCR) and released a statement that 1) expresses less concern about the world economy but 2) maintains an option to cut the rate in the future "should demand conditions weaken materially." It can do this because of a benign inflation outlook, projecting in target CPI […] More
Deeper Analysis
February PMIs: U.S. Has Commanding Lead over Euroland in Both Services and Overall Activity
March 5, 2012
The U.S. service-sector purchasing managers index improved 0.5 points in February, connoting a faster rate of expansion, whereas its euro area counterpart fell by 1.6 point and to less than 50 for the fifth time in six months, implying a contraction of activity. Composite Euroland PMIs in January and February of 50.4 and 49.3 suggest […] More
New Overnight Developments Abroad - Daily Update
Week Off to an Anxious Start
March 5, 2012
Share prices and commodities are lower, while the yen has strengthened. Several factors are weighing on sentiment. The Chinese government revised down projected growth and did not foreshadow shifting policy priorities. Private sector involvement in Greece’s bond swap has been less than hoped. ECB stimulus has probably hit the end of the line. Euroland’s composite […] More
