Central Bank Watch
Magyar Nemzeti Bank
May 24, 2016
Hungary’s Base Rate was cut to 0.90% from 1.05% in a third consecutive reduction of 15 basis points. The overnight lending rate also got sliced by 15 basis points, while the overnight deposit rate was retained at -0.05%. More important, a statement from Hungary’s Monetary Council signaled an end to the latest string of base […] More
Central Bank Watch
Central Bank of the Republic of Turkey
May 24, 2016
As done at the prior meeting on April 20, monetary officials in Turkey left the one-week repo rate and overnight borrowing rate unchanged at 7.5% and 7.25%, respectively, but lopped 50 basis points off the overnight marginal funding rate to 9.5%. The overnight rate corridor has but narrowed by 125 basis points since the March […] More
New Overnight Developments Abroad - Daily Update
Pound Up on Reduced Brexit Fears
May 24, 2016
A new phone poll by Daily Telegraph revealed a widening margin of voters favoring Britain staying in the European Union (55% to 42%), and sterling rose 0.9% against the dollar in response. The U.S. currency otherwise climbed 0.9% against the Aussie dollar, 0.6% versus the kiwi, 0.3% vis-a-vis the euro and yen, 0.2% relative to […] More
Central Bank Watch
Bank of Israel
May 23, 2016
Like the fourteen previous monthly monetary policy meetings, this month’s decision was to keep the key Israeli central bank rate at a lowly 0.1%. Four four straight calendar years (2011-14), it was reduced by 75 basis points, and those three cumulative percentage points of easing were topped off by a 15-basis point cut in February […] More
Foreign Exchange Insights and Next Week
Currency Management Norms Under Threat
May 23, 2016
A statement released April 15 by G20 finance ministers and central bank governors reaffirmed a position against currency manipulation that represents a coordinated stance that’s been in place already for a long time: Excess volatility and disorderly movements in exchange rates can have adverse implications for economic and financial stability. We will consult closely on […] More
New Overnight Developments Abroad - Daily Update
A Newsworthy Start to the Week
May 23, 2016
At the weekend meeting in Japan of Group of Seven finance ministers and central bankers, participants disagreed over the yen, expressed concern about Brexit and, more generally, the outlook for global growth, and pledged coordinated effort to prevent the financing of terrorism. U.S. Treasury Secretary Lew towed the precedent pledge not to engage in competitive […] More
Foreign Exchange Insights and Next Week
Next Week
May 20, 2016
Central Banks: Monetary policy meetings in Canada, Turkey, Hungary, Israel and Ukraine. Fed Chair Yellen heads a list of U.S. central bank officials speaking publicly that also includes Kaplan, Kashkari, Bullard, Powell, Harker, and Williams. Praet and Constancio of the European Central Bank, Stevens and DeBelle of the Reserve Bank of Australia, and Nakaso of […] More
Central Bank Watch
Central Bank of Sri Lanka
May 20, 2016
A 50-basis point hike in the lending and borrowing rates three months ago to 8.0% and 6.5% had been characterized by monetary officials as a pre-emptive move: “Excessive growth of broad money fuelled by domestic credit expansion in the midst of continued upward trend in underlying inflation requires pre-emptive policy measures in order to contain […] More
Central Bank Watch
Central Bank of Chile
May 20, 2016
Chile’s May monetary policy meeting on May 17 resulted in no change to the policy interest rate, which has been at 3.5% since a 25-basis point increase last December, but the statement released by officials reaffirmed that more rate normalization will become necessary eventually. December’s tightening was the second of the cycle following an initial […] More
New Overnight Developments Abroad - Daily Update
Stocks and Commodities Show Better Tone
May 20, 2016
Share prices in Europe have thus far recovered today by 2.3% in Greece, 1.3% in the U.K., 1.1% in France and Italy, 1.0% in Switzerland, and 0.9% in both Germany and Spain. Most markets in the Pacific Rim closed higher, too, such as Japan (0.5%), Australia (0.5%), Singapore (0.9%), China (0.7%), Hong Kong (0.7%), and […] More
