Central Bank Watch
Central Bank Interest Rate Cut in Taiwan
March 24, 2016
The Board of the Central Bank of the Republic of China (Taiwan) meets on a quarterly basis and, as done last September and December, cut its three interest rates including the main rediscount rate by 12.5 basis points at this month’s review. Three of the five 12.5-basis points hikes engineered between June 2010 and June […] More
New Overnight Developments Abroad - Daily Update
Investor Sentiment Spooked by Fed Official Rhetoric
March 24, 2016
Led by oil, commodity prices have dropped. West Texas Intermediate crude oil dropped 2.5% to $38.81 per barrel after indications of rising U.S. inventories. Comex gold edged 0.1% lower to $1,218.83 per ounce. The Shanghai Composite index of Chinese share prices fell 1.6%, most in two weeks. Equities closed down 1.3% in Hong Kong, 1.1% […] More
Central Bank Watch
Bank of Thailand
March 23, 2016
Thailand’s monetary policy interest rate was left at 1.5% as widely expected. Such was also the result of the previous six Monetary Policy Committee meetings. In 2015, the rate was cut by 25 basis points each in march and April. Six earlier reductions of that magnitude were implemented from November 2011 to March 2014. A […] More
Central Bank Watch
Bangko Sentral ng Pilipinas
March 23, 2016
Filipino central bank policy settings — a 4.0% overnight borrowing rate, a 6% overnight lending rate, and existing reserve requirement ratios — were left unchanged as expected. The last changes in the key interest rates were hikes of 25 basis points each in July and September 2014. A statement released today projects in-target inflation (2-4%) […] More
Central Bank Watch
Magyar Nemzeti Bank Cuts Hungary’s Central Bank Interest Rates
March 23, 2016
The Bank Rate had been cut by 490 basis points between August 2012 and July 2014 to 2.10% and by an additional 75 basis points in 15-bp increments from March 2015 through July 2015 but paused at 1.35% thereafter until now. Easing was resumed at this month’s meeting of the Monetary Council, and the amount […] More
New Overnight Developments Abroad - Daily Update
Tuesday-Wednesday Two-Day Highlights
March 23, 2016
The dollar on Wednesday extended Tuesday gains and has appreciated since the Monday closing by 1.3% against sterling, 0.7% vrsus the yen, 0.9% vis-a-vis the kiwi, 0.5% relative to the euro and Swiss franc, and 0.3% against the Chinese yuan. Chicago Fed President Evans made bullish remarks about the likelihood of more interest rate hikes […] More
New Overnight Developments Abroad - Daily Update
Constructive Start to a Holiday-Shortened Week
March 21, 2016
The Shanghai Composite Chinese equity index advanced 2.2% in response to a relaxation of government curbs there on margin lending. Japanese markets were closed for the Vernal Equinox holiday. Other stock markets in the Pacific Rim rose 1.3% in India, 0.5% in New Zealand and 0.3% in Hong Kong. In Europe, equities are mixed, with […] More
Foreign Exchange Insights and Next Week
Next Week
March 19, 2016
Central Banks: Interest rate policy meetings in Hungary, Thailand, Taiwan, Turkey, and the Philippines. Lockhart, Evans, Bullard and Harker of the Fed Speak publicly. So do Stevens and Edey of the Reserve Bank of Australia and Funo of the Bank of Japan. Holiday Closures: Japan on Monday for the Vernal Equinox. Greece on Friday for […] More
Central Bank Watch
Bank of Mexico
March 18, 2016
Mexico’s policy interest rate was left at 3.75%. An unexpected 50-basis point increase in February has lent the peso a more stable tone. A released statement from the Bank of Mexico says that future rate decisions will hinge on developments affecting actual inflation, expected inflation, Mexico’s output gap and Fed policy. The FOMC’s decision not […] More
Central Bank Watch
Russian Monetary Policy Left Unchanged
March 18, 2016
After keeping the 11.0% policy interest rate unchanged, Russian monetary policymakers released at statement that called the policy stance “moderately tight” and noted a drop in on-year CPI inflation from 15% in November to 8.1% last month. Officials surmise that “monetary policy may remain moderately tight over a longer period of time than expected” but express […] More
