Deeper Analysis
The True Nature of Sanders’ Appeal
June 9, 2016
The widely accepted narrative behind the success of Bernie Sanders quest for the Democratic Party nomination and rationale for him staying in the race long after he had any reasonable prospect of securing a majority or plurality of convention delegates rests on a few assertions. First, he polls better than Clinton with young voters. Second, […] More
Foreign Exchange Insights and Next Week
Next Week
June 9, 2016
Central Banks: There are interest rate policy meetings scheduled at the Fed, Bank of Japan, Swiss National Bank, Bank of England, and Bank Indonesia. The FOMC meeting will be followed by the release of new forecasts and a press conference given by Janet Yellen. ECB President Draghi and Bank of Canada Governor Poloz also speak […] More
Central Bank Watch
National Bank of Serbia
June 9, 2016
Serbia’s policy interest rate had been at 8% just 15 months ago. Seven 50-basis point reductions over the balance of 2015 were topped off with a 25-basis point cut this past February to the current level of 4.25%. That rate was retained at today’s June monthly meeting, and a released statement again justifies no need for […] More
Central Bank Watch
Surprise Central Bank Rate Cut in South Korea
June 9, 2016
The Bank of Korea’s Base Rate was sliced 25 basis points to 1.25%. This first rate change in a year was made “to ensure that the recovery of economic growth continues and consumer price inflation approaches the target level over a medium-term horizon.” Exports are still contracting, and domestic growth since April has evolved more […] More
New Overnight Developments Abroad - Daily Update
Reserve Bank of New Zealand Retains Record Low 2.25% Cash Rate
June 9, 2016
At a second straight monetary policy meeting, New Zealand’s official cash rate was not changed. Beginning at the year-earlier meeting in June 2015, five reductions were engineered by March 2016, and these more than reversed the four 25-basis point tightenings to 3.5% between March 2014 and July 2014. A statement explaining today’s decision talks about […] More
New Overnight Developments Abroad - Daily Update
Market Pessimism Returns
June 9, 2016
Central bank action overnight accentuated the negative. ECB President Draghi made another plea for badly needed structural reform and fiscal support, and he warned of lasting damage to potential growth in the region of prolonged very weak growth with persisting deflationary risks. ECB Governor Villeroy defended very low interest rates as necessary to counter insufficient […] More
