Deeper Analysis
Draghi on Why the Euro Area Is Not Sliding into Deflation like Japan Did
June 3, 2014
History and economic history is full of rationalizations that “this time is different.” So it seems to be with the ECB officials, who have defended their policy stance against accusations of the same over-complacency that the Bank of Japan showed in the 1990s as that economy slid gradually into price deflation. For the record, the […] More
Central Bank Watch
Reserve Bank of Australia: Outlook is for a Steady Interest Rate
June 3, 2014
The RBA Board previously cut its Official Cash Rate eight times between November 2011 and August 2013, lowering such by 225 basis points to just 2.5%. The OCR will continue at that record low level following this month’s policy meeting. A released statement call the policy stance “accommodative” but “appropriately configured to foster sustainable growth […] More
Central Bank Watch
Reserve Bank of India Policy Near Possible Turning Point
June 3, 2014
Repo and reverse repo hikes of 25 basis points each were implemented last September 20, October 30 and January 28. Policy has since been on hold in terms of rate level with the repo at 8.0% and the reverse repo at 7.0%. But the just completed bi-monthly review, to boost liquidity, authorizes a reduction of […] More
Central Bank Watch
National Bank of Poland
June 3, 2014
The central bank’s seven-day reference rate has been at 2.5% since a 25-basis point cut in July 2013 culminated a 225-bp easing cycle that had begun in November 2012. Officials do not expect this record low level to be changed before this year’s final quarter. That’s the conclusion of the policy committee’s latest statement. In […] More
New Overnight Developments Abroad - Daily Update
Steady Dollar as Ezone CPI Report Reinforces Need for ECB Easing
June 3, 2014
The dollar is unchanged against the yen, kiwi and sterling, up by 0.2% versus the loonie and 0.1% relative to the yuan, and down 0.1% overnight relative to the euro, Swiss franc and Australian dollar. Share prices climbed 0.7% in Japan and India, 0.9% in Hong Kong, 0.6% in Indonesia, 0.5% in Taiwan, and 0.3% […] More
