Central Bank Watch
Bank of Canada Cuts its Main Interest Rate
January 21, 2015
Canada’s overnight money rate target was cut by 25 basis points to 0.75%. Officials acknowledged some undesirable yet unavoidable surprise to markets in this decision, which is a response to an unambiguously negative impact on Canada of the recent plunge in oil prices. Today’s rate change was the first since the third of three 25-basis […] More
Central Bank Watch
Bank of Japan Puts Up a Good Front
January 21, 2015
The BOJ Board was not expected to change is quantitative monetary stimulus settings (QQE), and it didn’t surprise in that regard. Less than three months ago, planned annual JGB purchases were increased from 50 trillion yen, which had been the plan since April 2013, to JPY 80 trillion, and the targeted average maturity of JGB […] More
New Overnight Developments Abroad - Daily Update
Spotlight on Central Banks
January 21, 2015
In response to disinflationary implications of the plunge in oil prices, the Bank of Canada cut its overnight money rate target to 0.75% from 1.0%. Oil price changes also pose downside risks to growth, which is projected to fall to around 1.5% in the first half of this year, and to financial stability. The prior […] More
