Central Bank Watch
Trend Change in National Bank of Ukraine’s Policy Rate
October 26, 2017
Ukraine’s main central bank interest rate had been cut from 30% in August 2015 to 12.5% after a final cut made in May of this year, but officials at the latest policy review concluded that deterioration in actual inflation and price expectations now necessitated a full percentage point rate hike to 13.5%. CPI inflation was […] More
Central Bank Watch
Central Bank of the Republic of Turkey
October 26, 2017
Turkey’s 9.25% marginal funding rate, 7.25% overnight borrowing rate, and 8.0% one-week repo rate were all left unchanged. The last change made in any of these rates was a 75-basis point hike in the marginal funding rate in January of 2017. The Monetary Policy Committee released a statement today defending the decision not to relax […] More
Central Bank Watch
European Central Bank Settles on EUR 30 Billion of Monthly Asset Purchases Through at Least September
October 26, 2017
The ECB made several decisions: The interest rate structure (a zero refinancing rate, a negative 0.40% deposit rate, and a 0.25% marginal lending rate) was not changed, and a promise was made not to lift rates until well past the ending of quantitative stimulus. The current 60 billion euro pace of monthly asset purchases will […] More
New Overnight Developments Abroad - Daily Update
Central Bank Policies in the Spotlight
October 26, 2017
The Governing Council of the European Central Bank left its interest rate structure including a negative 0.4% deposit rate as is. The current monthly purchases of securities at a pace of 60 billion euros will continue this quarter and be reduced by half to 30 billion euros per month as of January. Quantitative stimulus at […] More
Central Bank Watch
Central Bank of Brazil
October 25, 2017
Brazil’s monetary policy committee, Copom, has undertaken the ninth interest rate reduction in the past twelve months, reducing its Selic Rate by 75 basis points to 7.5%. The previous four cuts were by a full percentage point each, and the Selic Rate prior to these nine reductions stood at 14.25%. Earlier, 325 basis points of […] More
Central Bank Watch
Bank of Canada Leaves Policy Rate at 1.0% and Releases Quarterly Monetary Policy Report
October 25, 2017
Canada’s overnight central bank interest rate was retained at 1.0% and will continue to be flanked by a 1.25% Bank Rate and a 0.75% deposit rate. After holding steady at 0.50% for two years, the overnight interest rate had been hiked by 25 basis points after each of the Governing Council’s prior two policy meetings […] More
New Overnight Developments Abroad - Daily Update
Sterling Rebounds and Streak Ends of Higher Daily Closes in Japan’s Stock Market
October 25, 2017
Sterling rose 0.9% overnight, buoyed by stronger-than-forecast third-quarter GDP growth. Xi Jinping introduced the new Chinese Politboro, all with similar ages to himself, and in so doing failed to signal an apparent successor in 2022. He is now China’s most powerful leader since Mao. Japan’s Nikkei closed down 0.5%. That was the first daily loss […] More
Central Bank Watch
National Bank of Hungary
October 24, 2017
Hungarian monetary policymakers left their base rate at 0.90% at the latest review. It’s been at that level since the last of 3 reductions in 2016, each by 15 basis points. The base rate had also been cut five times by 15 bps each during 2015 and is currently 610 basis points lower than in […] More
New Overnight Developments Abroad - Daily Update
Wait-and-See Mode
October 24, 2017
With much yet to be learned, investors seem to be of the view that on this day of a thin data release calendar that it’s best to wait and see Whom Trump picks to be the next Fed Chair. The details of ECB quantitative stimulus going forward into 2018 Whether the Catalonia crisis ends peacefully […] More
New Overnight Developments Abroad - Daily Update
A Fresh Political Mandate in Japan, While U.K. and Spain Stay Embroiled in Uncertainty
October 23, 2017
The Japanese Nikkei jumped 239 point or 1.1% following Sunday’s lower house election that gave Prime Minister Abe a resounding mandate and his LDP-led ruling coalition with Komeito more than a two-thirds majority in both houses of parliament. Abe now has the wherewithal to enact constitutional revisions that will affect foreign policy. The ten-year JGB […] More
