Foreign Exchange Insights and Next Week
Trick or Treat
October 24, 2013
This is the month when people are asked to choose between forking over a treat or suffering the consequences of a practical joke. The fiasco of a U.S. debt ceiling debate earlier this month ended thankfully without a government default but with a considerable dose of national disgrace. Knock on wood, but the treat during […] More
Central Bank Watch
Swedish Riksbank: Steady as She Goes
October 24, 2013
Four repo rate cuts were implemented between December 2011 and December 2012 but not since then. A statement released by the executive board of the Riksbank reaffirms that “the repo rate is not expected to be raised until the end of 2014.” The “low” inflation rate is continuing, and economic improvement, especially in the labor […] More
Central Bank Watch
Norges Bank Maintains 1.5% Policy Interest Rate
October 24, 2013
For a tenth straight time, Norway’s central bank executive board members left their policy interest rate at 1.5%. No change had been considered, and the policy outlook still considers a rate change unlikely before 3Q14. A statement summarizes developments since it met on September 19 as follows: “Inflation in September was lower than expected, but […] More
Central Bank Watch
Filipino Interest Rates Left Unchanged
October 24, 2013
The overnight lending and borrowing rates were last changed a year ago. Officials at Bangko Sentral ng Pilipinas implemented cuts of 25 basis points each in January, April, July and October 2012. The lending and borrowing rate levels will remain at 5.5% and 3.5%, respectively, officials announced after today’s policy meeting had concluded. A statement […] More
Deeper Analysis
35th Anniversary of Jimmy Carter’s Anti-Inflation Speech to the American People
October 24, 2013
The background to Jimmy Carter’s infamous speech on inflation, delivered October 24, 1978, was a four-percentage point rise in U.S. CPI inflation from 4.9% in December 1976, the month before his inauguration, to 8.9% in October 1978. After asking rhetorically how to reverse inflation, the former president admitted, “I do not have all the answers. […] More
New Overnight Developments Abroad - Daily Update
Several Things to Focus Upon
October 24, 2013
The dollar is generally steady, stocks are mixed, and there have been some data surprises. The dollar is unchanged against the Australian dollar and the yen, up 0.3% against the kiwi and 0.1% relative to the loonie, but down 0.2% against the euro and 0.1% vis-a-vis the yuan, Swiss franc and sterling. Share prices rose […] More
