Central Bank Watch
Bank of Mexico Raises Overnight Interbank Rate by Greater-than-Expected 50 Basis Points
December 16, 2021
The four previous rate hikes in June, August, September and November had been all 25-basis point changes, and analysts had assumed a similar increment. The rate was cut by three percentage points in 2020 and topped off by a 25-basis point reduction to 4.0% in February of 2021. The vote was not unanimous, as one […] More
Central Bank Watch
Lessening Quantitative Monetary Support by the European Central Bank
December 16, 2021
The European Central Bank Governing Council left its three main interest rates (a zero percent refinancing rate flanked by a deposit rate of -o.50% and an MLR facility rate of 0.25% unchanged but authorized changes in its quantitative stimulus with the net effect of lessening the degree of accommodation. Projected GDP growth was revised upward, […] More
Central Bank Watch
A Turkish Central Bank Rate Cut and a Norwegian Rate Increase on the Same Day
December 16, 2021
Thursday’s central bank action illustrated the broadening diversity of monetary policies around the world amid rising inflation but also persistent uncertainty related to the coronavirus pandemic. The Turkish lira got clobbered, slumping more than 5.0% further after the Central Bank of the Republic of Turkey reduced the one-week repo rate by another 100 basis point […] More
Central Bank Watch
Bank of England Raises Bank Rate by 15 bps to 0.25%
December 16, 2021
The Bank of England’s nine-person Monetary Policy Committee lifted the bank rate by 15 basis points to 0.25% in an 8-1 decision and indicated that modest further increases will probably be needed in 2022. Today’s move was somewhat controversial insofar as Britain is being hammered by the rapidly spreading Omicron Variant and now undergoing renewed […] More
New Overnight Developments Abroad - Daily Update
A Parade of Central Bank Announcements and PMI Releases, Plus Another Strong U.S. Labor Market Indicator
December 16, 2021
The rally late yesterday in U.S. equities carried over into Thursday trading. Share prices rose 2.1% in Japan, 0.8% in China, 0.7% in Taiwan and 0.6% in South Korea. The British, German and French stock markets show gains so far of more than 1.0% today, and the DJIA has gone up by a further 0.6%. […] More
