Archive for October 17th, 2013

Central Bank Watch

A Chilean Central Bank Interest Rate Cut

October 17, 2013

Board members at the Central Bank of Chile cut their policy interest rate for the first time since January 2012.  Both reductions were by 25 basis points, and the new rate level becomes 4.75%.  Previously, the rate was slashed by 775 basis points to 0.5% over the first seven months of 2009 and then raised […] More

Foreign Exchange Insights and Next Week

Taking Stock of the Effects of the latest U.S. Budget Showdown

October 17, 2013

Two questions in the immediate aftermath of the budget crisis are 1) what has changed and 2) whether those changes improve or harm the dollar’s outlook. The government shutdown and game of political chicken over the debt ceiling means weaker U.S. growth in both the third and fourth quarters from reduced government spending, shaken business […] More

New Overnight Developments Abroad - Daily Update

U.S. Debt Crisis Averted for Now.. Markets Turn to React

October 17, 2013

U.S. agreement details: Government shutdown suspended until January 15, barring a budget deal before then. Debt ceiling raised temporarily through February 7, though real deadline now sometime in March. President Obama has enhanced safeguards to avoid a default at the next crisis. Deal agreed by 81-18 senate vote and 285-144 vote in the House. There’s […] More