Deeper Analysis
Less U.S.-Advantageous PMI Spreads in August
September 3, 2015
In July when Grexit fever was at a high burn, the sum of the U.S.-minus-Eurozone purchasing manager survey differential had jumped to 6.6 points from 2.6 points the month before, but 80% of that increase was reversed in August. It was reported on Monday that the U.S. manufacturing PMI declined 1.6 points last month while […] More
Central Bank Watch
Swedish Riksbank: No Policy Change this Time but Will Loosen Further If Inflation Tracks Lower than Assumed
September 3, 2015
Sweden has a very expansionary monetary policy the embodies a negative interest rate, bond buying and the threat of currency intervention. All this is intended to raise inflation closer to 2% next year. At the prior meeting on July 2, the repo rate was cut by 10 basis points, and a bond buying program totaling […] More
Central Bank Watch
A Dovish ECB Message
September 3, 2015
Today’s Governing Council statement Left the refinancing, deposit and marginal lending rates at 0.05%, -0.20% and 0.30%, their levels since September 2014. Revised the projected future path of GDP growth and CPI inflation slightly downward because of a slowdown in emerging market economies and the recent drop in oil prices. Modified quantitative stimulus (QE) in […] More
New Overnight Developments Abroad - Daily Update
Heavy Flow of Information Continues
September 3, 2015
The Bank of Brazil ended a 7-meeting streak of rate tightening, as risks of deepening recession outweigh danger of vicious cycle of currency depreciation and rising inflation. The Selic Rate was left at 14.25%, its level after 325 basis points of tightening between October 2014 and July 2015. The Swedish Riksbank likewise left monetary policy […] More
