Deeper Analysis
Strengthening Yen Depressed Japanese Growth
December 10, 2012
It’s easy to see why Japanese officials have been distressed about the overvalued yen. The currency’s appreciation since the onset of the global financial crisis in August 2007 has correlated with relatively weak Japanese GDP growth including three distinct recessions. The weakest value of the yen in 2007, 124.14 per dollar, was touched on June […] More
Central Bank Watch
Central Bank of Russia
December 10, 2012
Bank Rosii reduced the width of its interest rate band by increasing the overnight deposit rate by 25 basis points to 4.5% and cutting the foreign currency swap rate by a similar amount to 6.5%. The main central bank rate, the 8.25% refinancing rate, was left unchanged. It’s increase of 25 basis points in mid-September […] More
New Overnight Developments Abroad - Daily Update
Concern about Italy
December 10, 2012
Italy took a step closer to winter elections. The highly respected Prime Minister Monti will resign after the 2013 budget is approved, and he is not expected to get reelected. That will put the likelihood of Italy fulfilling its austerity promises in jeopardy. Share prices in Italy have tumbled 3.2% today, dragging down other European […] More
