Deeper Analysis
Italy’s Pre-Maastricht Days
May 17, 2018
A headline in today’s Financial Times reads “Italy’s populists pine for pre-euro times.” The recently established Five Star party and the right-wing League have been trying to form a government, and they have been openly considering desired measures to modify their relationship with other members of the European Monetary Union. The Maastricht Treaty signed in […] More
Central Bank Watch
Bank of Mexico
May 17, 2018
The Governing Board of the Bank of Mexico agreed unanimously not to raise the 7.5% overnight interbank rate further at this time. Higher inflation driven by peso depreciation driven by hostile U.S. policies toward Mexico has compelled the central bank authorities to adopt a prudent monetary policy. Starting with a 25-basis point rate hike in […] More
Central Bank Watch
Bank Indonesia Tightens Monetary Policy For First Time Since Late 2014
May 17, 2018
Like their Brazilian colleagues late yesterday, monetary policymakers in Indonesia were compelled by recent foreign exchange market developments, namely the strength of the dollar and depreciation of emerging market currencies like the real and rupiah, to shift policy gears. In Brazil’s case, a long string of interest rate cuts was ended, and in the Indonesian […] More
Central Bank Watch
Central Bank of Brazil Breaks Streak of Interest Rate Cuts
May 17, 2018
Brazil’s key Selic interest rate had been reduced by a total of 725 basis points since October 2016, and Copom, the policy-making committee of the central bank, had not anticipated halting the easing cycle this soon when it previously deliberated in March. But by a unanimous 9-0 vote, officials agreed to leave the Selic rate […] More
New Overnight Developments Abroad - Daily Update
Little Change Overnight in Most Dollar Forex Values
May 17, 2018
Against other major currencies, the dollar is unchanged against the loonie and yuan, up 0.1% relative to the euro, Swiss franc and kiwi, up 0.3% versus the yen, but down by 0.1% against the Australian dollar and sterling. Bigger dollar moves have occurred against emerging market currencies. The greenback dropped 0.3% against the Indonesian rupiah […] More
