Central Bank Watch
Another Hungarian Central Bank Interest Rate Cut
December 18, 2012
Officials at the Magyar Nemzeti Bank cut the 2-week bill rate by 25 basis points for the fifth straight month. The first of these moves in August to 6.75% was the first rate reduction since April 2010. The rate level now becomes 5.75%, still 50 basis points above the Great recession trough. A background statement […] More
Central Bank Watch
First Cut of Turkey’s One-Week Repo Rate since August 2011
December 18, 2012
Turkey monetary officials continue to face conflicting imperatives. Growth last quarter (up just 1.6% from 3Q11) was its weakest since 2009, and CPI inflation has dipped under 6.5%. However, a current account deficit is shrinking only gradually and at some 6.5% of GDP remains greater than desired. An assortment of tools are employed to balance […] More
Central Bank Watch
Swedish Monetary Policy Eased but Officials Expect No Changes Next Year
December 18, 2012
A 25-basis point cut in the Riksbank repo rate to 1.0% announced this morning was accompanied by rate guidance that 1.0% is likely to be both the average and endyear rate level in 2013. Risks around that level are balanced. Today’s action had been anticipated and followed earlier 25-basis point cuts in December 2011 and […] More
Deeper Analysis
How the U.S. Current Account Deficit was Funded Last Quarter
December 18, 2012
The U.S. current account deficit dropped $10.6 billion in the third quarter. Although the decline was a bit less than analyst forecasts, it represented a 0.3 percentage point (ppt) reduction from the second quarter and a drop of 0.8 ppts from the first quarter of 2012. All financing for the current account gap in 3Q […] More
Central Bank Watch
Reserve Bank of India Appears to Pre-Announce Easier Stance Next Quarter
December 18, 2012
The Reserve Bank of India did not cut its 4.25% cash reserve requirement (CRR) as widely expected after its review of monetary policy. Indian growth slowed below 6% this year, and inflation has moved lower recently. The CRR had been reduced by 25 basis points each in September and October and, before that, by 50 […] More
New Overnight Developments Abroad - Daily Update
Investors Heartened by Reported Progress on Fiscal Cliff Talks
December 18, 2012
Share prices rose overnight by 1.0% in Japan, 0.6% in India, 0.5% in Australia, 0.3% in New Zealand and Thailand, 0.2% in Taiwan and the Philippines, and 0.1% in China. In Europe, equities have advanced 0.7% in Madrid, 0.4% in Frankfurt and Milan, and 0.3% in London, but the Paris Cac is off 0.1%. Not […] More
