Deeper Analysis
Comments on U.S. Current Account, Consumer Prices, and Monetary Policy
June 18, 2015
Balance of payments data out today confirm a weakening that foreshadows the dollar’s correction downward since mid-March. The $113.3 billion current account deficit in the first quarter was $10.2 billion wider than the prior quarter’s imbalance. The deficit increased as well in each of the final two quarters of 2014, bringing the three-quarter cumulative deterioration […] More
Central Bank Watch
Bank of Norway Cuts Deposit Rate to Record Low of 1.0%
June 18, 2015
Norway is an oil producer, and its economy was hard hit by the plunge in world oil prices after mid-2014 even though that dive has lately leveled off. A statement from Norges Bank Governor Olsen says that Norwegian growth has lately been weaker than expected. This not only justified today’s cut of 25 basis points […] More
Central Bank Watch
Swiss National Bank
June 18, 2015
As a perennial safe haven, the Swiss economy continues to grapple with the fallout of an overvalued currency related to global uncertainty including the five-year-long Greek debt crisis. Swiss monetary officials have resorted to negative interest rates and for several years imposed a cap with intervention on the Swiss franc’s euro cross rate. When that […] More
Central Bank Watch
Bank Indonesia
June 18, 2015
The released statement following this month’s Board of Governors’ meeting expresses satisfaction with the current monetary policy stance, anchored since February by a BI interest rate of 7.50%. Officials at the central bank believe the current interest rate structure meets their policy priorities: The decision is congruous with efforts to control inflation within the target […] More
New Overnight Developments Abroad - Daily Update
Many Factors for Investors to Digest
June 18, 2015
After the Fed’s decision and press conference, the dollar and sovereign debt yields fell, while share prices and commodities rose. The dollar lost further ground overnight, dropping 1.0% against the Australian dollar, 0.7% versus the yen, 0.6% vis-a-vis the loonie, euro and Swissie, and 0.5% relative to sterling. Against the pattern, the dollar also rose […] More
