Central Bank Watch
Central Reserve Bank of Peru Raises Interest Rate to 4.25%
March 10, 2016
Peru’s policy interest rate was increased by another 25 basis points in March, the fourth advance in four months and the fifth in seven months. A released statement, like earlier ones, characterized the move as preventive. Although temporary supply-side factors, including sol depreciation, lie behind the recent rise of inflation above 4.0%, expected inflation surpasses […] More
Central Bank Watch
Bank of Korea
March 10, 2016
The South Korean central bank’s seven-day repo rate was left at 1.50%, its level since a 25-basis point reduction in June 2015. There had been five earlier 25-bp cuts in November 2012, May 2013, August 2014, October 2014 and March 2015. A statement released after this month’s meeting of the Monetary Policy Board observes that […] More
Central Bank Watch
ECB Makes Several Policy Changes in More Aggressive Attempt to Lift Inflation Closer to Target
March 10, 2016
European Monetary Bank officials were intent on not making the mistake of December when the previous loosening of the policy stance underwhelmed markets for its timidity. The goals of today’s more forceful stimulus are explained in the statement from President Mario Draghi. This comprehensive package will exploit the synergies between the different instruments and has […] More
New Overnight Developments Abroad - Daily Update
Euro Rises on ECB Announcements
March 10, 2016
The ECB Governing Council announced a more aggressive package of stimulants than analysts were expecting. All ECB central bank interest rates including the main refinancing rate were lowered. The size of monthly quantitative asset purchases was increased 33% to EUR 80 billion and will run at least through end-2017. The types of eligible assets in […] More
