Deeper Analysis
Considerable contraction of U.S.-minus-Euroland PMI differential
February 4, 2015
A 2.0-point reduction of the spread between the U.S. and Euroland factory purchasing managers differential was revealed at the start of this week. To that relative improvement in the euro area’s situation, a 0.9-point drop in the service-sector PMI differential was learned today. In the two months since November, the sum of these two spreads, […] More
Central Bank Watch
Central Bank of Iceland Elects Not to Cut Interest Rate at February Meeting
February 4, 2015
The seven-day Icelandic rate had been cut by 50 bps in December and 25 bps in November 2014, reversing 43% of a previous 175-basis point rise in six steps between August 2011 and November 2012. A statement released by the Monetary Policy Committee explains why a further deceleration of inflation to 0.8% in December-January did […] More
Central Bank Watch
National Bank of Romania Eases Further as Expected
February 4, 2015
The monetary policy rate was reduced to 2.25%, a record low, from 2.50% after this month’s Board meeting. This was the second such cut of 2015 and follows cumulative reductions of 125 basis points in 2014, 125 bps in 2013, 75 bps in 2011, 175 bps in 2010 and 225 bps in 2009. The expected […] More
New Overnight Developments Abroad - Daily Update
Both Encouraging and Discouraging PMI Survey Results
February 4, 2015
Euroland’s service-sector purchasing managers index was revised upward to a 5-month high of 52.7 in January. That reading exceeded 51.6 in Decembere and 51.1 in November, helping to lift the composite PMI score to 52.6, best since July and consistent with 0.3% GDP growth if sustained through the current quarter. The composite PMIs for Germany […] More
