Central Bank Watch
Bank of Brazil Elects Not to Hike 14.25% Selic Interest Rate Further
September 2, 2015
For seven straight meetings of Copom, the policy committee, between October 2014 and July 2015, the Selic Rate had been increased, bringing such up 325 basis points in all to 14.25% in order to counter accelerating inflation, which now stands exceeds 9.5% and the 3-5% target. Monetary policy hasn’t had much cooperation from fiscal policy. […] More
Foreign Exchange Insights and Next Week
Two Conflicting Views on the Dollar
September 2, 2015
The dollar had done well since the spring of 2014, and widely different outlooks surrounding Fed monetary policy and the stances at other central banks generated great optimism toward the dollar at the turn of 2014-2015. The policy polarity was underpinned by a stronger growth trend in the United States than Europe or Japan. One […] More
Central Bank Watch
National Bank of Poland
September 2, 2015
Poland’s 1.5% central bank reference rate was left unchanged as expected, but a released statement flagged mounting downside inflation risks: “Increasing risk of stronger economic slowdown in emerging economies and the declining commodity prices have raised the uncertainty about the pace of inflation returning to the target.” After the meeting in early July, officials by […] More
New Overnight Developments Abroad - Daily Update
A Lull in the Action
September 2, 2015
Market changes were comparatively muted overnight. The flow of data releases was light, but now investors await several important indicators from the United States: quarterly productivity and unit labor costs, the Fed’s Beige Book, and monthly factory orders and NAPM index of New York area manufacturing conditions. The dollar rebounded 0.6% against the yen, 0.5% […] More
