Central Bank Watch
Bank of Canada Identifies Two-Sided Interest Rate Policy Risk
January 22, 2014
For the first time since the last overnight interest rate policy change — a 25-basis point hike to 1.0% in September 2010 — Bank of Canada officials allowed for the possibility that the next change could be a cut. The subtle warning is contained in the final sentence of today’s rate announcement: “The timing and […] More
Central Bank Watch
Bank of Thailand Leaves Policy Unchanged Defying Speculation of a an Ease
January 22, 2014
Following a policy meeting today, Thailand’s Monetary Policy Committee voted narrowly (4-3 with three wanting a 25-basis point interest rate cut) to retain a 2.25% central bank rate. Analysts were expecting a rate cut because of soft economic growth, and a statement released by the MPC indeed acknowledges the softening of domestic demand and slower-than-forecast […] More
Central Bank Watch
Bank of Japan Very Comfortable with the Current Degree of Accommodation
January 22, 2014
It came as no surprise that the BOJ Board left all policy settings unchanged. The monetary base is being increased at a rate of 60-70 trillion yen a year. The overnight uncollateralized money rate is to stay pinned between 0.0 and 0.1%; such has lately averaged 0.07%. Stimulus is aggressively loose both quantitatively and qualitatively. […] More
New Overnight Developments Abroad - Daily Update
Focus on Central Banks
January 22, 2014
Bank of Japan Board members went out of their way to dissuade markets from counting on additional monetary policy stimulus soon. The January meeting left 9-1/2-month-old policy settings intact, reaffirmed the prior meeting’s economic assessment, and released new price and growth forecasts that are very similar to those adopted in October. Governor Kuroda said the […] More
