Central Bank Watch
Bank Negara Malaysia
November 7, 2013
The overnight Malaysian policy interest rate has been 3.0% since a 25-basis point hike in May 2011 that culminated four such increases implemented in March 2010, May 2010, July 2010 and the aforementioned most recent tightening. A statement from the Monetary Policy Committee at BNM projects higher inflation than the 1.8% on-year average in the […] More
Central Bank Watch
The ECB’s Surprise Rate Cut
November 7, 2013
In a surprise to private ECB watchers, the Governing Council cut both the refinancing rate and the marginal lending rate to 0.25% and 0.75%, respectively, while leaving its deposit rate at zero. At today’s press conference, President Draghi denied that the decision was a response to the euro’s external level, asserting that policymakers acted in […] More
Central Bank Watch
Bank of England
November 7, 2013
The Monetary Policy Committee did not change its two policy settings — a 0.5% key interest rate and a GBP 375 billion ceiling on the asset purchase program — were left unchanged as expected. Forward guidance unveiled last July remains intact and factored in today’s result. A statement shed no light on the committee’s latest […] More
New Overnight Developments Abroad - Daily Update
ECB Cuts Interest Rates, Surprising Analysts Who Didn’t Expect Such Before December.
November 7, 2013
The dollar has marked time overnight and on balance is unchanged against the euro, yen and kiwi, up 0.1% versus sterling and the Swiss franc, up 0.3% relative to the Aussie dollar, and down 0.1% vis-a-vis the loonie. Share prices dropped 0.8% in Japan, 0.6% in China and the Philippines, 0.7% in Hong Kong, 0.4% […] More
Central Bank Watch
Central Bank of Iceland
November 6, 2013
Monetary officials decided to keep Iceland’s seven-day collateralized lending rate at 6.0%, its level over the past year encompassing eight interest rate policy meetings. The rate was increased in six moves by 175 basis points between August 2011 and November 2012, and officials continue to signal an eventual need for more rate normalization as spare […] More
Central Bank Watch
National Bank of Poland Extends Likely Unchanged Monetary Policy to Mid-2014
November 6, 2013
The Monetary Council of Narodowy Bank retained its record low 2.5% reference interest rate. From 4.75%, such was cut by 225 basis points in eight moves to its present level between November 2012 and July 2012. A 25-bp cut in July was the most recent rate change, and a statement accompanying today’s decision extended the […] More
Deeper Analysis
Bigger U.S. Advantage over Ezone in Services
November 6, 2013
The differential between the U.S. and Euroland service sector purchasing manager indices increased by 1.3 points to 3.5 in October. That spread was still much smaller than August’s differential and indeed the tightest spread since August 2011. Each region has posted PMI indices of more than 50.0 in both manufacturing and non-manufacturing for the last […] More
New Overnight Developments Abroad - Daily Update
Slightly Softer Dollar and Yen
November 6, 2013
The dollar edged 0.1% higher against the yen but is otherwise down 0.5% against the kiwi, 0.4% versus the euro, 0.3% relative to the Swiss franc, sterling and Australian dollar, and 0.1% against the loonie. The yuan is unchanged on a day that saw Chinese share prices drop 1.3%. In other stock markets, share price […] More
Central Bank Watch
Reserve Bank of Australia Expresses Greater Concern about the Aussie Dollar than Before
November 5, 2013
For some time, Australian monetary officials have asserted that the A-dollar is more elevated than economic fundamentals justify now that the terms of trade has peaked and the burst in investment-sector mining is winding down. The central bank’s Board meets monthly (except in January) and just issued a more urgent call for depreciation. The Board’s […] More
Central Bank Watch
National Bank of Romania Sanctions a Further Interest Rate Cut of 25 Basis Points
November 5, 2013
With today’s cut to 4.0%, Romania’s monetary policy interest rate has dropped in four steps by 125 basis points since midyear. From a peak of 10.25%, previous reductions of 400 bps were implemented in 2009-10 and 100 bps between November 2011 and March 2012. Analysts anticipated today’s development. In a statement released today, officials at […] More
