Central Bank Watch
A Pause in Monetary Tightening in India
April 1, 2014
The Reserve Bank of India previously engineered 25-basis point interest rate hikes last September 20, October 30 and January 28. The repo and reverse repo rates have been at 8.0% and 7.0% since the January hike. After reviewing their policy, monetary officials concluded that no further tightening is needed in the near term. Today’s bi-monthly […] More
Deeper Analysis
U.S. Regains Small Manufacturing PMI Advantage Versus Euro Area in March
April 1, 2014
For a second straight month, the spread between the U.S. and Ezone purchasing manager indices was less than 1.0 in size, but after identical readings in February, the U.S. retook a modest 0.7-point advantage amid a further rise in the euro. Currency appreciation can erode the competitiveness of Euroland exports and import-competing goods. The improved […] More
Central Bank Watch
Reserve Bank of Australia: No Change
April 1, 2014
Australia’s Official Cash Rate had previously undergone nine reductions of 25 basis points between November and August to a decades-low level of 2.5%, which although “accommodative” also happens to be “appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with the target. On present indications, the most prudent course is likely to […] More
New Overnight Developments Abroad - Daily Update
No Kidding Around: Many PMIs, Japan’s Tankan, and Interest Rate Decisions in Australia and India
April 1, 2014
Currency markets have hardly reacted to a ton of data on this April Fool’s Day. The dollar has edged 0.1% higher against the yen, loonie, sterling and Australian dollar and 0.1% lower versus the euro, Swiss franc and yuan. The Australian dollar is down 0.4% after the RBA’s announcement of an unchanged 2.5% Official Cash […] More
