Central Bank Watch
Central Bank of Brazil Tightens Monetary Policy Again in Face of Accelerating Inflation and Contracting GDP
July 29, 2015
Copom, Brazil’s monetary policy committee, started raising its short-term Selic interest rate from a base of 7.25% in April 2013. Inflation then of 6.6% was above target and threatening to send inflation expectations upward. Over the ensuing year to April 2014, the Selic rate was increased by 3.75% to 11%, and policy tightening was put […] More
Deeper Analysis
FOMC Policy Statement a Very Close Facsimile of the Prior One
July 29, 2015
Officials made even fewer modifications in the wording than the scant amount I was expecting, and the only changes came in the first paragraph describing economic conditions. The labor market — both job growth and unemployment — were upgraded, but the overall assessment of moderately expanding activity, sub-target inflation, low market-based measures of inflation compensation, […] More
Central Bank Watch
FOMC Preview
July 29, 2015
The last FOMC meeting on June 16-17 upgraded growth on improved household consumption, spoke of continuing progress on the mandates to maximize employment and secure a 2.0% inflation target, but decided that more evidence of sustained growth and higher inflation are needed before beginning to normalize the federal funds rate. Energy and the dollar, two […] More
New Overnight Developments Abroad - Daily Update
Dollar Marking Time Ahead of Today’s FOMC Announcement
July 29, 2015
The FOMC policy statement will be released at 18:00 GMT (14:00 EDT). There is no press conference or release of updated forecasts. No policy change is expected, but investors are unsure if the statement will provide clarifying information regarding the likelihood of a rate hike at September’s meeting. I look for vagueness on that regard, […] More
