Central Bank Watch
Peruvian Monetary Policy Rate Left at 4.25%
January 10, 2013
In a statement explaining the decision to leave Peru’s central bank interest rate at 4.25% where such has been since a rate hike in May 2011, the Central Reserve Bank said, This decision is based on the fact that inflation continues to decline and that it has returned to the target range after the shocks […] More
Foreign Exchange Insights and Next Week
A New Year Starts to Take Shape
January 10, 2013
Last year was a difficult one for the world economy, but 2013 has begun on an upbeat note. The full and immediate drag of the fiscal cliff on the U.S. economy was watered down considerably by a last-minute accord between Republicans and Democrats. Additional positive buzz came from predictions of a coming plunge in U.S. […] More
Central Bank Watch
ECB Press Conference and Statement Send Bond Yields and Euro Higher
January 10, 2013
The ECB did not change policy, which was the outcome expected by most analysts, but President Draghi’s statement and press conference went further in suggesting that policy may be approaching an inflection point in terms of the balance of risks surrounding the next policy adjustment. The decision not to cut rates was unanimous. Unlike December’s […] More
Central Bank Watch
Bank of England: Policy Settings Left as Is
January 10, 2013
The decision by the Monetary Policy Committee to leave the bank rate at 0.5% and the asset purchase program at GBP 375 billion was universally expected. Background to this month’s meeting can be found in my earlier preview. Most times when policy is not changed, officials release a bare-bones comment that tells when the interest […] More
Central Bank Watch
Bank Indonesia
January 10, 2013
Three central bank interest rate reductions between October 2011 and February 2012 lopped 100 basis points off Indonesia’s benchmark to 5.75%, but it will continue to hold at that level for at least another month and most likely longer. Prior to December 2007, the level had crested at 9.5%. The only increase since then was […] More
New Overnight Developments Abroad - Daily Update
Softer Yen and Dollar ahead of ECB Monthly Press Conference
January 10, 2013
The yen lost 0.4% against the dollar on continuing expectations of more expansionary fiscal and monetary policies in Japan. The dollar otherwise had declined 0.6% versus the Australian dollar, 0.5% relative to the kiwi, 0.3% vis-a-vis the euro and Swissie, and 0.2% against the loonie and sterling. The Bank of England as expected left policy […] More
