Archive for January 2015

Central Bank Watch

Bank Negara Malaysia

January 28, 2015

The past five changes in Malaysia’s overnight policy interest rate have been hikes, each of 25 basis points, administered in March 2010, May 2010, July 2010, May 2011 and, most recently, July 2014.  Officials at this week’s policy meeting agreed to keep the 3.25% rate level, calling the monetary stance both accommodative and appropriate.  The […] More

Central Bank Watch

Bank of Thailand Keeps Status Quo after 5-2 Vote

January 28, 2015

Thailand’s policy interest rate will remain at 2.0%, its level since a 25-basis point cut last March.  A debate over the implications for inflation of lower oil prices is described in a released statement.  According to the 5-person majority that favored the present level of monetary accommodation over cutting the interest further, A marked fall […] More

Central Bank Watch

FOMC Preview

January 28, 2015

This week’s FOMC meeting marks the end of the first year with Janet Yellen as Fed Chairperson.  A change in policy settings is not foreseen, and the market consensus continues to anticipate an initial rate hike happening around the middle of this year.  One new element in thinking could be the appreciation of the dollar, […] More

New Overnight Developments Abroad - Daily Update

Spotlight Today Belongs to Central Banks

January 28, 2015

Financial markets await the FOMC statement due at 14:00 EST (19:00 GMT).  Meaningful changes are not anticipated.  No press conference is scheduled afterward. The Monetary Authority of Singapore (MAS) tweaked monetary policy after its first unscheduled policy meeting in thirteen years.  Ordinarily policy, which is oriented around the management of the currency rather than a […] More

Central Bank Watch

Magyar Nemzeti Bank

January 27, 2015

A two-year-long campaign of central bank interest rate reductions, which cumulatively cut the two-week deposit rate by 490 basis points to 2.1%, ended last July when a final 20-basis point reduction was engineered.  The baseline scenario since then has been to leave the rate at the current level for all of 2015, but today’s latest […] More

Central Bank Watch

Sri Lankan Monetary Policy Settings Deemed Still Appropriate

January 27, 2015

The latest policy review at the Central Bank of Sri Lanka retained an 8% lending rate, a 6.5% deposit rate, and a 6% reserve requirement ratio.  The interest rates arrived at current levels after reductions in each of 25 bps in December 2012, 50 bps in May 2013 and 50 bps in October 2013, plus […] More

New Overnight Developments Abroad - Daily Update

Disappointing News Sends Dollar and Stocks Lower

January 27, 2015

Juno was downgraded to sub-blizzard status.  N.Y.C. is likely to get just a foot of snow, and the stock exchange opened as scheduled but with a thud, as the Dow dropped over 1.0%.  In Europe, equities have declined 5% in Greece, 1.4% in Germany, 1.2% in France, 0.9% in Spain, 0.8% in Britain and 0.6% […] More

Central Bank Watch

Bank of Israel

January 26, 2015

Israel’s central bank interest rate was left at the record low level of 0.25%, where such has been since a 25-basis point cut announced late last August.  An accompanying statement notes that both inflation and expected inflation continue to lie well below the 1-3% target range, that economic growth improved last quarter, and that trade-weighted […] More

New Overnight Developments Abroad - Daily Update

There’s Greece, and There’s the Rest of the Euro Area

January 26, 2015

Markets reacted with concern to a resounding victory of the Leftist anti-austerity Syriza Party in Greek parliamentary elections over the weekend.  The 10-year Greek sovereign debt yield jumped 33 basis points, and Greek share prices have fallen 3.5% after initially losing 5.6%.  One member of the ECB Governing Council reiterated that there can be no […] More

Foreign Exchange Insights and Next Week

Next Week

January 23, 2015

Central Bank Policy Meetings: Federal Reserve (but not press conference), Bank of Mexico, Bank of Russia, Central Bank of Sri Lanka, South African Reserve Bank, Bank Negara Malaysia, Reserve Bank of New Zealand, Magyar Nemzeti Bank, Bank of Israel, and the Bank of the Republic of Colombia.  Minutes will be released from the Bank of […] More

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