Central Bank Watch
Bank Indonesia Keeps Policy Stance on Hold
February 15, 2018
The 7-day reverse repo rate, the deposit rate and the overnight lending facility rate were retained at 4.25%, 3.5%, and 5.0%, respectively, at the February monthly meeting of Bank Indonesia’s Board of Governors. A statement was released that reiterates the main points of January’s statement. Inflation lies with and is expected to stay in the […] More
New Overnight Developments Abroad - Daily Update
Stocks Recover Further, While Bond Prices and Dollar Move Lower
February 15, 2018
Japan’s Nikkei jumped 1.5%. A number of other Asian markets (China, Taiwan, Hong Kong, and Singapore did not open because of the Lunar New Year holiday. Share prices in Europe are so far up today by 1.5% in France and Greece, 1.0% in Italy, 0.8% in Spain, 0.7% in Germany and 0.6% in the U.K.. […] More
Central Bank Watch
Swedish Riksbank Keeps Repo Rate at Negative 0.50%
February 14, 2018
Four months after lowering Sweden’s repo rate to an unprecedented level of zero percent in October 2014, Executive Board members embraced the negative interest rate tool, cutting the repo four times over the twelve months to February 2016 to its current level of -0.5% where such has been for the past two years. The start […] More
Central Bank Watch
Bank of Thailand
February 14, 2018
Thailand’s central bank policy interest rate has been at 1.5% since 25-basis point cuts in March and April of 2015. Monetary Policy Committee members decided to keep it at this pro-growth, accommodative level at this week’s review, releasing a statement that defends the need for such in order to promote the upward return of inflation […] More
New Overnight Developments Abroad - Daily Update
Significant Data Reports
February 14, 2018
Japanese real GDP expanded only 0.5% at a seasonally adjusted annualized rate last quarter, the weakest pace in eight quarters and down from 2.2% in 3Q and 2.5% in 2Q17. GDP still grew faster (1.6%) in 2017 than the prior year’s pace of 0.9%. The GDP price deflator went up merely 0.2% in 2017 and […] More
New Overnight Developments Abroad - Daily Update
Another Selling Wave Hits Stocks
February 13, 2018
Concern about the U.S. fiscal deficit appears to have been the catalyst for the latest drop in equities. A bill that passed the House by a vote of 240 to 186 and the Senate by 71 to 28 has been signed by President Trump, aborting a short-lived government shutdown, the second one of his administration. […] More
Central Bank Watch
A 25-Basis Point Cut in the Bank of Russia’s Main Interest Rate to 7.5%
February 12, 2018
During calendar 2017, a combination of three 50-basis point central bank interest rate reductions including one in December and three other cuts of 25 basis points lowered the rate to 7.75% from 10.0%. For this year’s first easing, officials chose a 25-basis point increment but released a statement that observed a significant current shortfall of […] More
New Overnight Developments Abroad - Daily Update
Fragile Market Conditions
February 12, 2018
Stocks rose, and the ten-year Treasury yield of 1.84% is five basis points below the recent peak. However, the rhetoric of comments about the market sounds unconvinced that last week’s extreme turmoil is out of the system. The DOW at this hour shows a rise of 0.8%, but the S&P 500 is only 0.3% firmer. […] More
Foreign Exchange Insights and Next Week
Next Week
February 9, 2018
Holiday Closures: Japan Founders Day on Monday. Brazil observes Mardi Gras on Monday and Tuesday. Several Asian countries will be closed Thursday and/or Friday for the Lunar New Year that ushers in the year of the dog. These include China, South Korea, Hong Kong, Indonesia and Singapore. Central Banks: Policy reviews at the Swedish Riksbank, […] More
Central Bank Watch
Reserve Bank of Peru
February 9, 2018
In each of the last three years, Peruvian CPI inflation has hovered in the lower half of the 1-3% target, and such was at 1.25% last month with a 2.0% underlying core rate. Economic growth is expanding at less than its potential trend. Expected inflation is still creeping lower. Monetary policy officials have accordingly been […] More
