Archive for May 2nd, 2019

Central Bank Watch

An Eighth Central Bank Rate Hike in the Czech Republic

May 2, 2019

Monetary officials at the Czech National Bank unanimously agreed to raise the 2-week repo rate by a quarter percentage point to 2.0%. Earlier 25-basis point rate hikes occurred in November 2017 and February, June, August, September and November of last year. This tightening cycle began in August 2017 with a move to 0.25% from the […] More

Deeper Analysis

U.S.-Minus-Euroland Advantage in Manufacturing Narrowed in April

May 2, 2019

The widening of the ISM U.S. minus euro area IHS purchasing purchasing manager manufacturing differential that had occurred in March was exactly reversed in April. The spread dropped from 7.8 points to 4.9 points, as the euro recorded its firmest monthly average against the dollar since December 2017. Manufacturing is more sensitive to movements in […] More

New Overnight Developments Abroad - Daily Update

Hawkish Central Bank Actions, Released Factory Surveys, and U.S. Politics in Turmoil

May 2, 2019

The Bank of England Monetary Policy Committee voted unanimously to leave its Base Rate at 0.75% but indicated that markets aren’t discounting enough future rate increases. The MPC’s statement affirms An ongoing tightening of monetary policy over the forecast period, at a gradual pace and to a limited extent, would be appropriate to return inflation […] More