Central Bank Watch
Big Interest Rate Hike at the Central Bank of Chile
January 26, 2022
Whereas G7 central banks other than the Bank of England (whose interest rate is still a very depressed 0.25%) have not begun interest rate lift-off, the same is not true at many second-tier monetary authorities. For example, the Brazilian Selic rate has been raised from a 2.0% pandemic low to 9.5%. Ukraine’s policy rate has […] More
Central Bank Watch
FOMC Statement and Press Conference: No Big Surprises and A Singularly Anti-Inflation Approach Articulated
January 26, 2022
As expected, the FOMC statement signals that the fed funds rate will likely be raised “soon,” code for the clear possibility of lift-off at the next meeting in March. Inflation has been recategorized from “having exceeded 2%” to “well above 2%.” An assertion of “a strong labor market” was inserted into the statement as a […] More
Central Bank Watch
FOMC Preview
January 26, 2022
Over the six weeks since the last FOMC meeting in 2021, the dollar has risen 0.3% against the yen but dipped 0.2% relative to the euro. The anticipation of Fed interest rate liftoff as soon as March has weighed on equities not only in the United States but also many other countries. The ten-year Treasury […] More
Central Bank Watch
Bank of Canada Drops Exceptional Forward Guidance that Had Committed Keeping Policy Rate at 0.25% Until Around Mid-2022
January 26, 2022
While keeping the central bank’s overnight policy rate at 0.25%, Bank of Canada officials today made a substantial modification in the forward-looking part of their released statement. Previous statements including that after last year’s final policy review on December 8 had promised to “hold the policy interest rate at the effective lower bound until economic […] More
New Overnight Developments Abroad - Daily Update
Equities and Dollar Up Ahead of FOMC Announcement
January 26, 2022
Share prices so far today have climbed 1.8% or more in Germany, France, Spain, Italy and Great Britain. Futures trading in the S&P 500, DJIA, and Nasdaq show overnight gains of 1.0 – 1.8%. Equities in Asia closed narrowly mixed with drops of 0.4% in Japan and South Korea but gains of 0.7% in China […] More
