Archive for June 26th, 2012

Central Bank Watch

Hungarian Monetary Policy Pause Extended for Another Month

June 26, 2012

The Magyar Nemzeti Bank Base Rate was last changed in December, when a fifth increase was implemented.  The rate level is now 7.0% versus above-target on-year CPI inflation of 5.3%.  Inflation has been lifted by tax hikes made to reduce the budget deficit.  Hungary also happens to be in recession.  Real GDP plunged 5.1% at […] More

New Overnight Developments Abroad - Daily Update

Spanish Glue

June 26, 2012

Spain’s problems look increasingly sticky.  Moody’s downgraded the rating of 28 Spanish banks, and Spanish T-bill auction results produced worse results on dampened expectations of a productive EU summit at the end of this week.  The 2.36% yield on the 3-month paper sold by the government was 1.5 percentage points higher than at the May […] More