Central Bank Watch
Bank of England: No Change in Policy Settings by Unanimous Consensus
June 16, 2016
The BOE’s Bank Rate has been 0.5% since March 2009. The Brexit referendum a week from today represents an enormous uncertainty overhanging future policy. A final large paragraph from the Monetary Policy Committee’s statement has this to day about the potential effect on policy of that vote. As the Committee set out last month, the […] More
Uncategorized
Unchanged Swiss Monetary Policy but Higher Near-Term Inflation after Quarterly Policy Review
June 16, 2016
The Swiss sight deposit rate target was left at -0.75% and the 3-month Libor target corridor was kept at -1.25% to -0.25%. Swiss National Bank authorities also said they”will remain active in the foreign exchange market, as necessary.” Explaining these decisions in a released statement, officials go on to say The negative interest rate and the […] More
Central Bank Watch
A 25-Basis Point Central Bank Rate Cut in Indonesia
June 16, 2016
Bank Indonesia cut the BI Rate, which had been reduced by 25 basis points each in February 2015 and January, February and March of this year, was cut to 6.5% from 6.75%. A released statement cited ” low inflation, a narrower current account deficit and relatively stable exchange rates” and opined that “the new policy […] More
Central Bank Watch
Bank of Japan Elects to Do Nothing New after Mid-June Meeting
June 16, 2016
The central bank’s inaction elicited a very negative market reaction that sent Japan’s stock market down 3.1%, pinned the JGB yield at negative 0.21%, and lifted the yen to a multi-year high against the dollar of 103.55. The released statement of the Policy Board after deliberations totaling 4 hours and 9 minutes over two days […] More
New Overnight Developments Abroad - Daily Update
Eroded Confidence in Central Banks
June 16, 2016
The yen leaped as high as 103.55 per dollar from 105.95 at the Wednesday close following the Bank of Japan’s decision not to change policy settings at its June meeting. The Nikkei tumbled 3.1% to 15,434, and the 10-year JGB yield is at -0.21%. Investors were bummed out by Janet Yellen’s press conference yesterday. While […] More
