New Overnight Developments Abroad - Daily Update
Focus on Bank of England and ECB
February 7, 2013
The dollar is narrowly mixed with gains of 0.4% against the kiwi, 0.2% versus the euro and yen, and 0.1% against the Australian dollar but declines of 0.3% versus the Swiss franc and sterling and 0.1% relative to the loonie. The yuan is steady. After Wednesday’s 3.8% leap, the Nikkei settled back 0.9%. Elsewhere in […] More
Central Bank Watch
Bank of England Preview: No Changes Likely
February 6, 2013
January committee meeting minutes had a slightly more hawkish tone and indicated reservations about possible collateral damage of ever-increasing quantitative easing. Moreover, sterling’s modest depreciation in recent months constitutes some modest easing of monetary conditions delivered in a more innocuous manner. Global and regional growth prospects and financial conditions have improved since 4Q12. The Bank […] More
Central Bank Watch
ECB Preview
February 6, 2013
The Governing Council of the ECB is not expected to cut its 0.75% refinancing rate or to take unconventional easing steps at Thursday’s monthly meeting. The euro area economic recession seems to be flattening in an uneven way, and financial market strains have greatly lessened since November. Officials like Liikanen have reminded markets that the […] More
Central Bank Watch
National Bank of Poland Eases Again
February 6, 2013
The Monetary Policy Council announced its fourth reference rate cut of 25 basis points since November. The new rate, 3.75%, is just 25 bps above its trough of 3.5% prior to 2011. In defending today’s decision, officials declared that The decrease in interest rates should support economic activity and reduces the risk of inflation remaining […] More
Central Bank Watch
Czech National Bank
February 6, 2013
Bank officials decided unanimously to leave the CNB’s two-week repo rate at 0.05%, the level to which it was cut by 20 basis points in early November. That move followed 25-bp reductions last September and June and cumulative cuts of 150 bps in 2008, 125 bps in 2009, and 25 bps in 2010. The backdrop […] More
Central Bank Watch
Central Bank of Iceland: Benchmark Interest Rate Kept at 6.0%
February 6, 2013
The 7-day Icelandic collateralized interest rate was previously raised from a base of 4.25% by 25 basis points in August and November of 2011, then by 25 bps in March 2012, by 50 bps in May, 25 bps in June and, most recently, by 25 bps last November to 6.0%. While keeping that level after […] More
New Overnight Developments Abroad - Daily Update
Somewhat Firmer Dollar
February 6, 2013
The dollar has strengthened 0.8% against the Aussie currency, 0.6% versus the Swiss franc, 0.4% relative to the euro, 0.3% against the kiwi, 0.2% vis-a-vis the loonie and 0.1% against the yen and pound. The yen touched overnight lows of 94.07 per dollar and 127.74 pr euro. The Aussie dollar hit a 2-month low of […] More
Central Bank Watch
Reserve Bank of Australia
February 5, 2013
The Board’s view is that with inflation likely to be consistent with the target, and with growth likely to be a little below trend over the coming year, an accommodative stance of monetary policy is appropriate. The inflation outlook, as assessed at present, would afford scope to ease policy further, should that be necessary to […] More
Central Bank Watch
National Bank of Romania
February 5, 2013
Romania’s monetary policy rate has not been changed since a 25-basis point cut to 5.25% in late March 2012, which culminated a sequence of four such moves that began in November 2011. Earlier, five reductions totaling 225 bps were implemented in 2009, and another four moves totaling 175 bps were done in 2010. The current […] More
Deeper Analysis
Service-Sector U.S.-Ezone Performance Gap Narrowed Last Month
February 5, 2013
The U.S. non-manufacturing purchasing managers index in January was at 55.2, about a half point less than forecast and down by a similar amount from December. Euroland’s services PMI of 48.6 was revised 0.3 points higher from its preliminary indication and 0.8 points above December’s score. As a result, the spread between the U.S. and […] More
