Foreign Exchange Insights and Next Week
Next Week
June 13, 2014
Central Bank meetings are being held next week in Norway, Switzerland, Thailand, the Philippines, Russia and, most importantly, by the Federal Reserve, which will unveil new macroeconomic and individual interest rate forecasts. There will be a press conference Wednesday led by Chair Janet Yellen. Ironically, her predecessor Ben Bernanke also speaks that day in Zurich. […] More
Central Bank Watch
Central Bank of Chile Leaves Key Interest Rate Unchanged as Expected
June 13, 2014
Chile’s central bank rate is currently 4.0%, same as Peru’s, even though Chilean inflation of 4.7% is 1.1 percentage points above the Peruvian rate. Also, whereas Peru’s rate has been reduced just once in the past four-plus years (by 25 basis points last November), Chile’s monetary policy rate was sliced five times by that increment […] More
Central Bank Watch
Central Reserve Bank of Peru: Again No Rate Change
June 13, 2014
The last change in Peru’s monetary policy reference rate was a cut of 25 basis points last November to 4.0%, and that was the first reduction in over four years. For the seventh straight subsequent meeting and as analysts were expecting, policy was left unchanged after the June Board meeting. A released statement attributes above-target […] More
Central Bank Watch
Bank of Japan Holds ‘Em
June 13, 2014
The Bank of Japan Board released a statement after its June meeting that reaffirmed existing policy and reads nearly identically to the prior meeting’s statement released May 21. Current policy settings were first announced in early April 2013 as the first pillar among three that form Abenomics. Stimulative fiscal policy is the second pillar, and […] More
New Overnight Developments Abroad - Daily Update
Scent of Monetary Restraint Coming to the U.K.
June 13, 2014
The annual Mansion House Speech from Bank of England Governor Mark Carney suggested that the first hike of the central bank interest rate may happen sooner than markets are assuming and possibly before year-end. Actions against house price inflation appear imminent but will be introduced in a measured way. Three other central banks overnight left […] More
