Central Bank Watch
Bank of Japan Keeps Existing Policy Settings
October 31, 2017
The Bank of Japan Board released both a statement and a fresh quarterly Outlook for Economic Activity and Prices after its latest policy review, a two-day meeting that consumed a total four hours seven minutes of discussion. The Outlook is the more informative document as it provides extensive background regarding current economic conditions, the baseline […] More
New Overnight Developments Abroad - Daily Update
Mixed News at Month End
October 31, 2017
The dollar traded up by 0.6% against the kiwi, 0.4% relative to the Swiss franc and Australian dollar, and 0.2% vis-a-vis the yen, euro and loonie. The dollar is unchanged against sterling and 0.3% and 0.2% softer against the peso and yuan. In stock market action, share prices rose 0.9% in South Korea and 0.5% […] More
Central Bank Watch
Central Bank of Colombia Enacts an Eighth 2017 Interest Rate Cut
October 30, 2017
Colombia’s benchmark interest rate was sliced to 5.0% from 5.25%. This was this year’s sixth 25-basis point reduction, and there have been also two cuts of 50 basis points. Prior to these, there was an initial 25-bp cut in mid-December of 2016. The rate had crested at 7.75% from July until December of last year. […] More
Foreign Exchange Insights and Next Week
2017 Isn’t 1981
October 30, 2017
The dollar famously soared in the early 1980s on a mix of tighter monetary policy and a stimulative fiscal policy driven by sharp U.S. tax reduction. Such a policy configuration is falling into place as 2017 winds down, and market sentiment towards the dollar seems to be improving judging by momentum behind published forecasts. Moreover, […] More
New Overnight Developments Abroad - Daily Update
A Week Begins Fraught with Possibility
October 30, 2017
U.S. President Trump has promised to reveal his choice for Fed Chairperson this week before leaving for Asia on Friday. Jerome Powell is perceived to be the likeliest choice. Although presently a member of the Fed Board of Governors, Powell is not an economist by training. Over the past 47-1/2 years, economists have chaired the […] More
Foreign Exchange Insights and Next Week
Next Week
October 27, 2017
Central Banks: The identity of the next Federal Reserve Chairperson is expected to be revealed next week. The FOMC meets Tuesday and Wednesday for its penultimate policy review of 2017. Other central bank policy meetings are scheduled at the Bank of England, Bank of Japan, and Czech National Bank. A majority of analysts expect to […] More
Central Bank Watch
Bank of Russia
October 27, 2017
The fifth cut so far in 2017 in Russia’s central bank interest rate, this time to 8.25% from 8.50%, was announced today. The previous four reductions totaled 150 basis points, and previous cuts amounted to six percentage points during the first seven months of 2015 and 100 basis points last year. All in all, the […] More
New Overnight Developments Abroad - Daily Update
Stronger Yen and Dollar ahead of U.S. GDP Figures
October 27, 2017
The earliest estimate of U.S. third-quarter GDP growth gets released shortly. Forecasters anticipate similar growth to the 3.1% result in 2Q. The dollar meanwhile has continued to strengthen against the euro (0.3% overnight) in response to contrasting monetary policies. Trump is expected to replace Yellen with a more hawkish person to lead the Fed, while yesterday’s […] More
Central Bank Watch
Swedish Riksbank
October 26, 2017
Monetary officials at the Swedish Riksbank reaffirmed that a central bank rate hike is unlikely before the second half of next year and that the upward path thereafter will be gentle. According a a released statement, the repo rate, which has been non-positive since October 2014, negative since February 2015, and at the current -0.50% […] More
Central Bank Watch
Central Bank of Norway
October 26, 2017
The key Norwegian central bank interest rate has been 0.50% since a 25-basis point cut in March 2016. The rate previously was cut 50 basis points in December 2011, twice by 25 bps each in 2014, twice more by 25 bps each in 2015. A statement released today by Norges Bank’s Executive Board asserted that […] More
