Archive for February 1st, 2018

Central Bank Watch

Czech National Bank Raises its Interest Rates a Third Time

February 1, 2018

Following earlier increases of 20 basis points last August and 25 bps in November, the Czech two-week repo rate has been increased another 25 basisĀ  points to 0.75%. The Lombard rate becomes 1.50% versus 0.25% prior to last August, while the 0.05% discount rate hasn’t changed all this time. A released statement anticipates some further […] More

Deeper Analysis

U.S.-Minus-Euroland PMI Spread Narrowed in January

February 1, 2018

The differential between the ISM’s U.S. manufacturing purchasing managers index and the IHS-compiled PMI for the euro area had roughly doubled in December to -4.0 but then was cut by half to -2.0 last month. Both indices remained well above 50, indicating very strong rates of improvement, but each index was below December’s level. That […] More

New Overnight Developments Abroad - Daily Update

Evidence of Intensifying Price Pressure Around the World

February 1, 2018

The dominant theme of manufacturing PMIs for January was a further significant pickup in cost pressure related to a variety of factors such as more elevated oil prices, faster growth in demand than capacity, and the falling value of the dollar. U.S. unit labor costs jumped 2.0% between the third and fourth quarters of last […] More