Central Bank Watch
National Bank of Poland Tightens
October 6, 2021
Poland’s is the latest central bank to hike interest rates in the face of above-target inflation. Whereas earlier rate increases announced in New Zealand and Iceland were not unexpected, a 40-basis point policy rate hike to 0.5%, which reverses the last of three cuts in the first half of 2020, had not been forecast. In […] More
Central Bank Watch
Central Bank of Iceland Implements Third Rate Hike of 2021
October 6, 2021
At the Central Bank of Iceland, the seven-day term deposit rate was increased by 25 basis points to 1.5%. This is the third quarter percentage point tightening since May. Inflation topped 4% at 4.4% last month, and supply chain shortages continue, further risking an upward drift in inflation expectations. While first-half growth underperformed the expectations […] More
Central Bank Watch
Reserve Bank of New Zealand Raises OCR
October 6, 2021
The Reserve Bank of New Zealand’s Official Cash Rate was doubled to 0.50% in the first increase since June 2014. A statement released by the Monetary Policy Committee there warns that “the economy contracted sharply during the recent nationwide health-related lockdown” but identifies “cause for concern in that inflation expectations appear to have begun rising […] More
New Overnight Developments Abroad - Daily Update
Inflation Surprises Persisting, Central Banks Reacting, and Investors Fretting about What Lies Just Ahead
October 6, 2021
Against the backdrop of central banks reacting to higher-than-forecast inflation, the dollar continues to be a well-bid currency. The weighted DXY dollar index came within a 0.05-point whisker overnight of matching its 52-week high set last November. The U.S. currency also rose 1.1% against the kiwi and Mexican peso, 0.7% versus the euro and Aussie […] More
