Central Bank Watch
Bank of Canada Keeps Four-Year-Old Policy Settings But Shares New Kernels of Wisdom
October 22, 2014
The monetary policy interest rate target has been at 1.0% since a 25-basis point hike in September 2010. Following a quarterly review, that level is still considered appropriate, according to a statement released today. The statement and accompanying Monetary Policy Report convey numerous insights into the latest thinking of Canada’s monetary policymakers. Canada’s output gap […] More
New Overnight Developments Abroad - Daily Update
Focus on Lessening Inflation
October 22, 2014
The latest monthly economic assessment from Japan’s government downgraded its view on consumer prices from “rising moderately” to “rising at a slower tempo recently.” The overall view of the economy also was downgraded to “is on a moderate recovery, while weakness can be seen recently.” Australian third-quarter consumer price data revealed the smallest quarter-on-quarter rise […] More
New Overnight Developments Abroad - Daily Update
Data to Digest
October 21, 2014
Data released earlier today include Chinese GDP, retail sales, industrial production and business investment, revised Euroland deficit- and debt-GDP ratios, and Japan’s all-industry index. U.S. existing home sales and weekly chain store sales figures are awaited. Markets are also getting some corporate earnings reports, which have exceeded expectations. The dollar is unchanged overnight against the […] More
New Overnight Developments Abroad - Daily Update
Fresh Drop in European Equities
October 20, 2014
European share prices are selling off again following Friday’s interrupted downtrend. The German Dax, British Ftse and Paris Cac are down 1.1%, 0.9%, and 0.8% so far. Investors remain worried about the outlook for European growth and fear the ECB Governing Council will not do enough to forestall another slide into recession and possible deflation. […] More
Foreign Exchange Insights and Next Week
Next Week
October 17, 2014
Central Bank interest rate meetings are scheduled next week in Canada, Norway, the Philippines and Turkey. Central Banks in the U.K. and Australia release minutes of their meeting earlier this month, and the Bank of Canada publishes a quarterly Monetary Policy Report. U.S. existing and new home sales data will be released, along with consumer […] More
Central Bank Watch
Another Chilean Interest Rate Cut
October 17, 2014
Officials at the Central Bank of Chile announced late Thursday the eighth interest rate cut in a year. The key rate was reduced previously in October and November of 2013 and February, March, July, August, and September of this year. All these cuts have been by 25 basis points, and the benchmark is now 3.0% […] More
New Overnight Developments Abroad - Daily Update
Dovish Rhetoric
October 17, 2014
Markets have a better tone. aided by some dovish remarks from Fed’s Bullard (maybe QE3 shouldn’t end now), Coerce (ECB to start buying assets very soon), Nowotny (euro depreciation constructive), Haldane (British data point to later rate hike rather than sooner), and Kuroda (BOJ easing to continue until 2% inflation secured). The 10-year Treasury futures […] More
Deeper Analysis
Who’s Easing Monetary Policy; Who’s Been Tightening
October 16, 2014
Central banks cut interest rates during the first half of October in South Korea and Poland. Rates were cut in September in Romania, Sri Lanka, Chile, Peru, and Euroland, where the ECB Governing Council also introduced several unconventional measures to loosen policy. Between May and August, rates were cut in Sweden, Turkey, Hungary, Thailand, Israel, Serbia […] More
Central Bank Watch
Unchanged Serbian Monetary Policy Rate
October 16, 2014
The Executive Board of the National Bank of Serbia left monetary policy on pause. The benchmark interests rate had been cut by 225 basis points over the final two-thirds of 2013 but by a further 50 basis points each in May and June of this year to 8.5%. But a released statement after this month’s […] More
New Overnight Developments Abroad - Daily Update
No Respite from Volatility
October 16, 2014
The dollar and yen were well bid overnight. Japan’s currency climbed 0.3% against the greenback, which otherwise advanced 1.3% relative to the Australian dollar, 0.9% vis-a-vis the kiwi, 0.8% against the loonie, 0.6% versus the euro and Swissie but just 0.1% against sterling. Stocks slumped overnight by 2.2% in Japan, 1.4% in Singapore, 1.3% in […] More
