Central Bank Watch
Bank of Korea Leaves Key Interest Rate Unchanged but Monitoring Impact of Won Appreciation against Yen
January 8, 2014
South Korea’s seven-day repo rate has been 2.5% since the last of three 25-basis point cuts between July 2012 and May 2013. The rate previously was hiked via five moves of 25 bps from 2.0% prior to June 2010 to 3.25% a year later. Inflation of 1.2% on-year as of November continues to lie below […] More
Central Bank Watch
FOMC Debate on Possible Reasons and Significance of Sub-Target Inflation
January 8, 2014
Aggressive quantitative stimulus by the Federal Reserve has for some time been defended because both its mandates — a sufficiently healthy labor market and price stability — are not being met and that faster economic growth is needed to close those gaps. While the U.S. unemployment rate has declined more quickly than Fed officials had […] More
Central Bank Watch
Polish Central Bank Interest Rate Left at 2.5%
January 8, 2014
Poland’s seven-day repo rate was last cut in July 2013. That reduction to a record low culminated 225 basis points of cuts in eight moves beginning with a 25-bp cut in November 2012. Officials at Narodowy Bank Polski agreed as expected to retain the existing monetary policy stance following their first meeting of 2014. Although […] More
Central Bank Watch
National Bank of Romania Becomes First Central Bank to Ease in 2014
January 8, 2014
Romania’s base rate has been cut to 3.75% from 4.0% and was accompanied by a statement that projects falling inflation and expresses concern about the negative growth of bank lending to the private sector. The analysis of macroeconomic indicators points to further disinflation, as a result of the decline in volatile prices, particularly food prices, […] More
New Overnight Developments Abroad - Daily Update
Euro a bit Lower Despite Positive German Data
January 8, 2014
The dollar climbed overnight by 0.3% against the loonie, 0.2% versus the euro, Swiss franc and yen and 0.1% relative to the kiwi. Sterling is 0.1% stronger, and the yuan and Aussie dollar are unchanged against the greenback. The Nikkei rebounded 1.9%, helped by a softer yen. In other markets around the Pacific Rim, stocks […] More
