Central Bank Watch
Bank of Korea
March 7, 2012
The seven-day Korean repo rate was left at 3.25%, its level since June. Analysts had not expected a change. During the Great Recession, the rate was cut from 5.25% to 2.0%, but five 25-bp increases were done between July 2010 and June 2011 to reach the current level. A statement noted that growth has stabilized […] More
Central Bank Watch
A More Aggressive 75-Basis Point Interest Rate Cut in Brazil than Generally Expected
March 7, 2012
The Bank of Brazil’s monetary policy committee, COPOM, has implemented a fifth straight cut of its Selic interest rate, which at 9.75% is the lowest such has been since May 8, 2010. 275 basis points of a 375-bp tightening between April 2010 and July 2011 has now been reversed in five moves. The first of […] More
Central Bank Watch
Reserve Bank of New Zealand Policy Still on Hold
March 7, 2012
In the wake of the South Island earthquake, New Zealand’s Official Cash Rate (OCR) was slashed by 50 basis points in March 2011 and returned to its all-time low of 2.5%, which had prevailed from end-April 2009 until a pair of 25-bp rate hikes in June and July of 2010. A statement just released after […] More
Central Bank Watch
Bank of Canada Preview: No Change anticipated
March 7, 2012
The Bank of Canada overnight money target has been maintained at 1.0% since three consecutive increases of 25 basis points administered in June, July and September of 2010. No change is likely tomorrow either, which the Board reveals its decision after its second of eight scheduled meetings in 2012. The announcement is due at 14:00 […] More
Central Bank Watch
ECB Preview
March 7, 2012
There likely will be no further changes of ECB policy, which has eased extensively since Draghi assumed the central bank’s presidency some four months ago. New quarterly growth and inflation projections are due, however, and the table below gives the history of changes in those range estimates. GDP 2011 GDP 2012 GDP 2013 CPI […] More
Central Bank Watch
Polish Monetary Policy on Hold
March 7, 2012
Officials at the Narodowy Bank, who meet monthly, left their reference interest rate at 4.5%, its level since June 8, 2011. CPI inflation of 4.1% remains well above the 2.5% target but is projected to drop near to such by late 2013. New forecast ranges for inflation and growth were unveiled in the central bank’s […] More
New Overnight Developments Abroad - Daily Update
Weak Data and Super Tuesday Results
March 7, 2012
Australian GDP rose only 0.4% last quarter, half as much as forecast. A 4.7% decline in Australia’s terms of trade was the greatest quarterly slump in a couple of years. On-year growth decelerated to 2.3% from 2.5% in 3Q. Australia’s construction PMI index worsened further to a reading of 35.6 in February from 39.8 in […] More
