Central Bank Watch
Today’s FOMC Statement
March 20, 2013
Today’s statement from the Federal Open Market Committee repeated the January 30th statement in most respects, including The retention of all existing interest rate and quantitative monetary policy settings. The retention of the same economic data-driven policy guidelines for the future of the federal funds target. These are thresholds, not targets that would automatically necessitate […] More
Deeper Analysis
Comments on the British Budget and Relevance to Fiscal Discussions in America
March 20, 2013
The British Budget avoided surprises. It was already well-advertised by the team of Prime Minister David Cameron and his financial sidekick George Osborne that there is to be no backing down from a strategy of austerity in the face of excessive fiscal deficit spending and rising debt, never mind that weak growth (and in turn […] More
Central Bank Watch
FOMC Preview
March 20, 2013
This marks a release time change for the FOMC statement. These were released previously at about 14:15 local time but from hereon will arrive at 14:00 EDT. The statement will be followed 30 minutes later by the start of a Bernanke press conference and the unveiling of new macroeconomic forecasts and indications of the frequency […] More
Central Bank Watch
South African Reserve Bank Keeps 5.0% Repo Rate
March 20, 2013
After sifting through a complexity of cross-currents, the Monetary Policy Committee called the current stance “appropriately accommodative. Note was made in a newly released statement that Growth is weak, and its outlook is fragile. The current account is wider. Difficult labor relations have fed high unemployment. Headline and core inflation rose sharply last month to […] More
Central Bank Watch
No Change Made in Central Bank of Iceland Interest Rate
March 20, 2013
Six increases of the seven-day collateralized lending rate between August 2011 and November 2012 lifted such from 4.25% to 6.0%, but three subsequent meetings have come and gone without a further increase. A statement released today after the third of those meetings Notes that Icelandic GDP growth slowed more sharply between 2011 and 2012 than […] More
New Overnight Developments Abroad - Daily Update
A Day of Big Events
March 20, 2013
The proposed levy on Cypriot bank deposits was rejected by that country’s parliament by a vote of 36 to zero with 19 abstentions. Tremendous uncertainty surrounds the scramble for an alternative plan to secure bailout aid and how this development might hurt the post-OMT stabilization of Ezone and global financial markets. Cyprus constitutes just 0.2% […] More
