Central Bank Watch
Swedish Quantitative Monetary Stimulus Augmented
October 28, 2015
Economic activity in Sweden is strengthening and inflation is showing a clear upward trend. But there is still considerable uncertainty regarding the strength of the global economy and central banks abroad are expected to pursue an expansionary monetary policy for a longer time. Compared with the previous assessment, inflation is expected to be a little […] More
New Overnight Developments Abroad - Daily Update
Dollar Mixed Ahead of FOMC Statement
October 28, 2015
The dollar is down 0.3% against the euro and loonie and 0.1% relative to the yen, but the U.S. currency has also risen by 0.7% against the Aussie dollar, 0.5% vis-a-vis the kiwi and 0.1% against the yuan. Sterling is steady. Japan’s Nikkei rose 0.7% but elsewhere in the Pacific Rim stocks dropped by 1.9% […] More
Deeper Analysis
FOMC Preview: No Chance of a Federal Funds Hike
October 27, 2015
Weaker-than-expected U.S. growth and inflation since the mid-September meeting of the Federal Open Market Committee, plus greater disparity in public comments from Fed officials with some coming out in favor of no rate change before 2016, has all but eliminated any chance of a rate hike tomorrow. The announcement will occur at 14:00 EDT (18:00 […] More
New Overnight Developments Abroad - Daily Update
Softer Energy Prices, Stronger Yen
October 27, 2015
West Texas Intermediate oil fell 1.2% to $43.98 per barrel, and natural gas costs slipped to a three-year low. The yen is 06% stronger against the dollar, which otherwise firmed 0.2% relative to the loonie and 0.1% vis-a-vis sterling and the Swiss franc. The euro, yuan and Aussie dollar are unchanged. Share prices mostly fell […] More
Central Bank Watch
Bank of Israel
October 26, 2015
Israel’s monetary policy rate will stay at 0.10% in November, its level since a 15-basis point cut announced in late February. CPI inflation of 0.4% remains less than zero, and core inflation is at 1.0%. Expected inflation is stable, and GDP is expanding moderately. The official statement notes that monetary policy stances are still quite […] More
New Overnight Developments Abroad - Daily Update
Further Evidence of the German Economic Resilience
October 26, 2015
The dollar fell overnight by 0.4% against the yen, loonie and kiwi, 0.3%relative to the euro and 0.2% against sterling. Share prices rose in the Pacific Rim but mostly are down in Europe. The changes have been only moderate. The 10-year gilt yield is a basis point lower. The 10-year JGB firmed a basis point. […] More
Foreign Exchange Insights and Next Week
Next Week
October 16, 2015
Central Banks: Policy meetings are scheduled at central banks next week in Canada, Brazil, the ECB, Turkey and Hungary. Scheduled U.S. Data Reports: Next week’s slate of releases includes housing starts, building permits, the NAHB housing market index, existing home sales, the Chicago Fed’s National Activity index, the K.C. Fed manufacturing index, the Conference Board […] More
Central Bank Watch
Central Reserve Bank of Peru
October 16, 2015
A 25-basis point increase of Peru’s monetary policy interest rate at the previous policy meeting in September had been the first rate hike since May 2011 and followed 25-bp cuts in November 2013, July 2014, September 2014 and January of this year. It is the hope of monetary officials that September’s action will not launch […] More
Bank of Chile
Central Bank of Chile
October 16, 2015
Chile’s monetary policy rate was lifted by 25 basis points to 3.25%. This was the first increase since June 2011. In between, the rate had been lowered nine times by 225 basis points in all. The first of those cuts occurred in January 2012, and the last one was done a year ago in October […] More
Central Bank Watch
Another Serbian Central Bank Interest Rate Cut
October 16, 2015
The National Bank of Serbia’s policy rate was cut this past Wednesday by 50 basis points to 4.5%. This was the seventh 50-bp reduction since March. A released statement defends the move because of several factors: continuing sub-target inflation, a stable exchange rate amidst earlier monetary easing, favorable fiscal and balance of payments developments, and […] More
