Central Bank Watch
Bank Rossii
February 12, 2013
The Bank of Russia’s Board of Directors kept its refinancing rate at 8.25%, the level since a 25-basis point hike last September and also the level prior to a 25-bp cut in December 2011. A statement from monetary officials notes that CPI inflation of 7.1% currently mostly reflects food price pressures but predicts above-target inflation […] More
Central Bank Watch
Bank Indonesia Retains 5.75% Record Low Reference Interest Rate
February 12, 2013
The benchmark interest rate has been at 5.75% since a reduction of 25 basis points in February 2012, which was the third cut following ones of 25 bps in October 2011 and 50 bps in December 2011. 300 basis points of easing that began in December 2008 ended in August 2009 at 6.5%. Two years […] More
New Overnight Developments Abroad - Daily Update
Verbal Support for Weaker Yen, Soft Dollar, and Firm Euro
February 12, 2013
G7 finance ministers and central bankers released a standard statement on FX policy that failed to criticize Japan: “We, the G7 Ministers and Governors, reaffirm our longstanding commitment to market determined exchange rates and to consult closely in regard to actions in foreign exchange markets. We reaffirm that our fiscal and monetary policies have been […] More
New Overnight Developments Abroad - Daily Update
Softer Yen on this Japanese Holiday
February 11, 2013
Trading today was subdued by market closures in Japan and China. Japan is celebrating National Foundation Day, a patriotic commemoration of the accession of the country’s first emperor. China will be shut most of this week for the Chinese Lunar New Year, which ushers in the year of the snake. The biggest news of the […] More
Foreign Exchange Insights and Next Week
Next Week
February 8, 2013
On the central banking beat, interest rate policy meetings are scheduled next week in South Korea, Sweden, Japan and Indonesia. The Bank of England’s quarterly Inflation Report, the ECB’s monthly Bulletin, and the BOJ’s monthly economic assessment get published, and central bank chiefs from the Group of Twenty will join finance ministers to meet on […] More
Central Bank Watch
Unchanged Peruvian Monetary Policy
February 8, 2013
The Central Reserve Bank of Peru’s monetary policy interest rate was left at 4.25% yet again. It’s been at that level since a 25 basis point hike in May 2011. The rate was cut during 2009 from 6.5% to 1.25%, then raised by 175 bps during 2010 and by another 125 bps in the first […] More
New Overnight Developments Abroad - Daily Update
Yen Surprise
February 8, 2013
The Japanese yen rose 1.1% against the dollar, strengthened by the remarks of Finance Minister Aso that the currency’s fall from 78 through 90 had been faster than expected. There was confusion around the translation of exactly what he said. Make no mistake, however, officials led by Aso and Abe had previously engaged in verbal […] More
Foreign Exchange Insights and Next Week
Currency Words
February 7, 2013
Currency market participants spend considerable time waiting for uncertain areas of interest to become better clarified. By the time that happens, other mysteries overtake investor psychology, and the market moves on to another issue. At this moment, attention has been captured by the attempt of several governments to manipulate exchange rates in the hope of […] More
Central Bank Watch
Bank of England Didn’t Change QE but Released a Detailed Statement Anyway
February 7, 2013
The Monetary Policy Committee almost never gives immediate information on meeting discussions unless it has changed policy. This meeting was one of the extremely few exceptions, which in itself could be the biggest story. Rather detailed remarks in a released statement conclude The Committee discussed the appropriate policy response to the combination of the weakness […] More
Central Bank Watch
ECB Review: No Big Surprises
February 7, 2013
ECB interest rates — a 0.75% refinancing rate flanked by a zero deposit rate and a 1.50% marginal lending rate — were left unchanged as expected. They’ve been at these levels since last July’s easing. Remarks on growth and inflation were consistent with what has been said in the recent past including at January’s meeting […] More
