New Overnight Developments Abroad - Daily Update
Continuing Stock Market Jitters
February 9, 2018
Equities lost 4.1% in China, 3.6% in Hong Kong, 2.3% in Japan, 1.8% in South Korea. They are down 0.9% in France and 0.7% in the U.K. and Germany. After yesterday’s second 1000+ point daily drop of this week, the DOW initially rose today but now shows a decline of nearly 200 points. It’s taken […] More
Central Bank Watch
Bank of Mexico Tightens
February 8, 2018
Mexico’s overnight interbank facility rate was lifted again, this time by 25 basis points to 7.5%. Today’s action is the twelfth increase dating back to December 2015, prior to which the policy rate had been at 3.0%. This progressive restraint is meant to anchor medium-term and long-term inflation expectations in the face of unforeseen shocks […] More
Central Bank Watch
Bank of England
February 8, 2018
As had been expected, the Monetary Policy Committee by unanimous consent did not change policy settings. The Bank Rate has been 0.50% since being doubled three months ago in a move that reversed the 25-basis point cut in August 2016 shortly after Brexit was approved narrowly by citizen referendum. Ceilings of GBP 435 billion on […] More
Central Bank Watch
Bangko Sentral ng Pilipinas
February 8, 2018
The Filipino overnight reserve repo rate was left at 3.0%. It’s been at that level since early June 2016 when the central bank monetary board abandoned a point target of 4% and adopted a 3-4% target corridor. The ceiling is imposed by the overnight lending rate. A statement of explanation for today’s action revises projected […] More
Central Bank Watch
National Bank of Serbia
February 8, 2018
Serbia’s policy interest rate was left at 3.5%. The last and only reduction of 2017 was implemented in October and a half percentage point in size. There had been previous cuts of 275 basis points in the final eight months of 2013, 150 bps in 2014, 350 bps in 2015 and 50 basis points in 2016. […] More
New Overnight Developments Abroad - Daily Update
Equity Market Volatility Picks Up
February 8, 2018
It’s been another difficult day for equities. Today’s session started fine enough, with gains of 1.0% in India, 0.5% in South Korea where the Winter Olympics are getting under way, and 0.4% in Hong Kong. These up-moves balanced declines of 0.4% in Japan and 1.4% in China where a considerably smaller trade surplus for January […] More
Central Bank Watch
Reserve Bank of New Zealand
February 8, 2018
New Zealand’s Official Cash Rate was left at 1.75%. In seven increments of 25 basis points, such was halved between June 2015 and November 2016 and has been at 1.75% fifteen months. A released statement from the central bank notes that inflation has been weaker than expected lately, projects a rise of inflation in the […] More
Central Bank Watch
Central Bank of Brazil
February 7, 2018
Brazilian monetary officials lowered the Selic interest rate by a total of 625 basis points in 2017, but the reduction of 50 basis points in December had been the smallest cut. After meeting this week, members of the monetary committee, Copom, decided unanimously to halve that increment to 25 basis points and asserted that “regarding […] More
Central Bank Watch
Reserve Bank of India
February 7, 2018
India’s Monetary Policy Committee maintained its existing rate structure including a 6.0% repo rate after its first scheduled review of 2018. It did this despite a 5.2% inflation rate at end-2017, which is well above the target center of 4.0%. Official felt compelled to revised projected inflation in the first half of the fiscal year […] More
Central Bank Watch
Central Bank of Iceland
February 7, 2018
The Monetary Policy Committee at Sedlabanki kept Iceland’s seven-day term deposit rate at 4.25%, its level since a 25-basis point cut in October 2017 that culminated four moves totaling 125 basis points of reduction since August 2016. Those declines fully reversed rate hikes previously during 2013. Officials released a rather hawkish statement that suggests that […] More
