Central Bank Watch
Peruvian Central Bank Interest Rate Kept at 4.25%
April 15, 2016
Four previous 25-basis point rate increases were implemented last September, December, January and February in response to inflation considerably above the 1-3% target. April’s was the second straight monthly meeting not to tighten further, and a statement released by monetary officials at the Central Reserve Bank of Peru noted that total and core inflation fell […] More
New Overnight Developments Abroad - Daily Update
Profit-Taking Friday
April 15, 2016
Investors were in a more sober mood at week’s end. The dollar fell back 1.0% against the kiwi, 0.7% relative to the won, 0.5% versus the yen, 0.3% vis-a-vis the Aussie dollar and sterling, and 0.2% against the euro. The loonie and yuan are unchanged. Share prices in Europe are down 0.8% in Switzerland, 0.6% […] More
Central Bank Watch
Singapore’s Semi-Annual Monetary Policy Statement Adopts a Neutral Policy Stance
April 14, 2016
The Monetary Authority of Singapore (MAS) subordinates monetary policy to an exchange rate target and had run a stance of gradual trade-weighted appreciation of the Singapore dollar for the past six years. The rate of permitted appreciation had been flattened somewhat at an unscheduled January 2015 meeting and again last October. In fact, the average […] More
Central Bank Watch
Bank of England: No Change
April 14, 2016
In 2016, communication by the Monetary Policy Committee has changed but not the stance of policy. Policymakers now release a detailed statement of explanation instead of the old system of deferring details except when changing the interest rate to published minutes, which used to be delayed by two weeks. The Bank Rate of 0.5% since […] More
New Overnight Developments Abroad - Daily Update
Some Investor Caution Returns
April 14, 2016
Yesterday’s stock market rally carried into Asia but not Europe. Share prices rose 3.2% in Japan, 1.3% in Australia, 1.8% in South Korea, 1.9% in India and 0.5% in China. Equities in Europe have settled back 0.7% in Greece, 0.4% in Spain and Italy, and 0.1% in the U.K. and France. The German Dax is […] More
Central Bank Watch
Bank of Canada Retains 0.5% Overnight Money Rate Target and Releases New Forecasts
April 13, 2016
A statement justifying the existing central bank interest rate structure makes seven primary assertions. First, the global economic outlook has weakened since January. Second, commodity prices are slightly above levels assumed at the start of this year, although well below historical averages. Third, the Canadian dollar has firmed. Fourth, potential non-inflationary output growth had to […] More
New Overnight Developments Abroad - Daily Update
Crowd-Pleasing Chinese March Trade Data
April 13, 2016
Investors had already been in a risk-on frame of mind because of the upcoming OPEC meeting to freeze production and lend support to oil prices. Chinese trade figures released overnight suggest that economy’s slowdown may be stabilizing and boosted stock and commodity prices further. Chinese exports recorded on-year positive growth of 11.5%, their first rise […] More
Central Bank Watch
Central Bank of Chile
April 12, 2016
There were two 25-basis point Chilean interest rate hikes in the final quarter of 2015. They were the first tightenings in several years, but there has been no further change in the 3.5% range since December. A statement released after the latest policy meeting kept that level but promises further rate normalization. Inflation of 4.5% […] More
Deeper Analysis
IMF Reduced Projected Growth Further
April 12, 2016
New economic growth forecasts were unveiled today ahead of the spring 2016 IMF/World Bank meetings. The latest World Economic Outlook, which is prepared quarterly, downgrades projected baseline 2016 growth for the world, the aggregated groups of all advanced economies and those that are developing or emerging, as well as for most individual countries including the […] More
New Overnight Developments Abroad - Daily Update
Oil Retains $40-Plus Level
April 12, 2016
After closing above $40 per barrel on Monday, West Texas Intermediate crude oil extended its rebound by 0.6% to $40.59. Investors are hopeful that upcoming talks between OPEC and Russia will yield an accord to freeze production. Signs of higher inflation contributed to a better investor mood as well. Swedish consumer prices rose 0.5% in […] More
