Central Bank Watch
New Zealand Official Cash Rate Held Steady at 1.75%
March 22, 2017
As they decided at the first 2017 meeting held February 9, policymakers at the Reserve Bank of New Zealand agreed to keep their key interest rate at 1.75%, a record low reached after a 25-basis point cut last November. That was the seventh 25-basis point reduction since June 2015. The official cash rate had been […] More
New Overnight Developments Abroad - Daily Update
Continuing Retreat in Share Prices
March 22, 2017
The Japanese Nikkei tumbled 414 points or 2.1%. Equities also fell 1.6% in Australia, 1.4% in Hong Kong, 1.1% in India, 1.3% in Singapore and 0.5% in China and South Korea. This followed yesterday’s U.S. selloff and extended into Europe where stocks so far today are down 1.4% in Greece, 0.8% in the U.K., 0.6% […] More
Deeper Analysis
Comment on U.S. Current Account Data
March 21, 2017
U.S. President Trump has cast great attention on the U.S. trade and current account deficits, calling such a drag on the growth of U.S. real GDP and jobs and insinuating that the deficit expanded and the jobs and GDP situations deteriorated under his predecessor’s stewardship. The facts indicate otherwise otherwise. The current account deficit averaged 2.5% […] More
New Overnight Developments Abroad - Daily Update
Dollar in Retreat
March 21, 2017
The dollar’s weaker again. The euro rose above $1.080 for the first time since February 2 and hit its best level since January 31. The greenback has fallen 0.9% against sterling, 0.7% relative to the euro, 0.4% vis-a-vis the kiwi, 0.3% versus the Swiss franc, Chinese yuan and Mexican peso, 0.2% against the loonie, and […] More
New Overnight Developments Abroad - Daily Update
Somewhat Softer Dollar in Wake of G20 Meeting of Finance Ministers and Central Bank Chiefs
March 20, 2017
The dollar slipped overnight by 0.4% against the New Zealand and Australian dollars, 0.2% relative to the euro and sterling, and 0.1% vis-a-vis the Swiss franc. The dollar is unchanged against the loonie and up 0.2% versus the peso and 0.1% against the yen and yuan. The Japanese and Mexican markets are shut for the […] More
Foreign Exchange Insights and Next Week
Comments on G20 Communique and Medium-Term Macroeconomic Expectations
March 19, 2017
The Group of Twenty finance ministers and central bank leaders met for two days in Baden-Baden, Germany and released a statement on Saturday that is notable for two omissions. The first deletion concerns trade and exchange rate policy. The pledge regarding currency management wasn’t changed and still states, We reiterate that excess volatility and disorderly […] More
Foreign Exchange Insights and Next Week
Next Week
March 17, 2017
Central Banks: Monetary policy reviews in New Zealand, Sri Lanka, Russia, The Philippines, and Colombia. Minutes of prior policy meetings to be published by the Bank of Japan and Reserve Bank of Australia. Fed officials speaking publicly include Chair Yellen, Evans, Kashkari, Mester, Dudley, George, and Bullard. The size of a new ECB targeted long […] More
Central Bank Watch
Central Bank of Chile Cuts Interest Rate to 3.0%
March 17, 2017
The Chilean monetary policy rate had been 3.5% for 13 months until a 25-basis point reduction in January, and now a second such cut has been engineered and statement released suggesting more easing may lie ahead: “if the recent trends of the economic scenario persist, and so do their implications on the medium-term inflation outlook, […] More
New Overnight Developments Abroad - Daily Update
Discussions on a Quiet Day in the Market
March 17, 2017
Fed Chair Yellen and U.S. Treasury Secretary Mnuchin are in Baden-Baden Germany for two days of talks with their Group of Twenty counterparts. Trade and currency manipulation will be center stage. German Chancellor Merkel is in Washington on a visit with U.S. President Trump, who has criticized the size of the German current account deficit […] More
Central Bank Watch
Bank of England
March 16, 2017
The Monetary Policy Council agreed again to leave its Bank Rate at 0.25%, but the vote drew a dissent for only the second time in the past dozen meetings. The dissent by Kristin Forbes, who favored a 25-basis point rate increase to 0.50%, was the first one she has cast since joining the MPC. Policymakers […] More
