Central Bank Watch
Bank of Russia Keeps Interest Rate Steady at 10.5%
July 29, 2016
The Bank of Russia had reduced the rate in June, but according to its new statement, a paused decline in expected inflation led officials not to cut further this time. The statement, however, leaves the door open to more rate relief if, as they expect, inflation actually continues to decline. The 4% target is expected […] More
Central Bank Watch
Disappointing Bank of Japan Response
July 29, 2016
Market participants were expecting a more forceful Bank of Japan stimulus than was done. The Bank of Japan’s three-tier interest rate structure wasn’t changed. The macro add-on rate is zero. The Basic Balance rate is 0.10%. The BOJ policy rate is negative 0.10%. The program to increase bond purchases at a rate of 80 trillion […] More
Deeper Analysis
July in Figures
July 29, 2016
In July, the price of West Texas Intermediate oil plunged more than 10%, the 10-year British gilt yield dived 75 basis points, share prices around the world rallied strongly, and the dollar slipped moderately against a broad spectrum of other currencies. 10-Yr Yield 06/30/16 07/29/16 Chg v End-2Q U.S. 1.48% 1.45% -3 Basis Points Germany […] More
New Overnight Developments Abroad - Daily Update
Plenty of Disappointment to Go Around
July 29, 2016
Second quarter U.S. GDP growth of 1.2% was only about half as much as forecast, due mainly to a big drag from inventories. Canadian GDP sank 0.6% in May as industrial production there plunged 3.7% on month. The Bank of Japan produced less stimulus than hoped, limiting its action to an increase of EFT buying […] More
