Central Bank Watch
Brazilian Selic Rate Hiked to 2.75%
March 18, 2021
As in Turkey, monetary policymakers at the Central Bank of Brazil out-tightened market expectations. The Selic interest rate was raised by 75 basis points, not 50 bps as forecast, to 2.75% in the first hike of any sort since 2015. The rate had been cut five different times last year from February through August by […] More
Central Bank Watch
Two Percentage Point Central Bank Rate Hike in Turkey
March 18, 2021
One currency to buck the downward trend of most currencies versus the dollar has been the Turkish lira, which has rebounded about 2% in response to a greater-than-expected 200 basis point increase in the Central Bank of Turkey’s one-week repo rate. Turkish CPI inflation has climbed to 15.6%. At 19%, the central bank interest rate […] More
New Overnight Developments Abroad - Daily Update
U.S. Treasury Yield Climbs Sharply in Spite of Fed’s Message and Lifts Dollar
March 18, 2021
Markets aren’t buying yesterday’s dovish policy message from the Federal Reserve. The 10-year U.S. Treasury yield roared ten basis points higher overnight to 1.74%, just shy of doubling mid-December’s level. The 10-year British gilt yield rose 6 basis points even though the Bank of England maintained its policy settings, too, and called its current monetary […] More
