Central Bank Watch
Magyar Nemzeti Bank: No Policy Change Likely for Considerable Time Longer
December 16, 2014
In 24 consecutive increments from August 2012 through July 2014, Hungary’s central bank base rate was cut from 7.0% to 2.1%, topped off by a 20-basis point reduction in the final step. There have now been five successive meetings with no rate change, and today’s statement, which asserts that Inflation in Hungary is likely to […] More
Central Bank Watch
Swedish Riksbank Seeking More Accommodation in Unconventional Means
December 16, 2014
The Swedish repo rate was cut to zero on October 28th, but a statement after this year’s final regular monetary policy meeting sends the message that attaining a zero nominal interest rate is not the end of the line for augmenting monetary stimulus. Rather explicit forward guidance is the first go-to policy tool, and it […] More
New Overnight Developments Abroad - Daily Update
Extremely Volatile Markets
December 16, 2014
A 650-basis point hike in the Central Bank of Russia’s one-week auction rate to 17% stemmed the ruble’s plunge only momentarily, and the currency posted its greatest daily drop since the 1998 default. Earlier today, it approached 80 per dollar, having only traversed the 40 level in October. There is talk that capital controls or […] More
