Central Bank Watch
Central Bank of Russia
June 10, 2022
The Central Bank of Russia, unlike most other monetary authorities around the world, is marching to a different drum, and the irony is that Russia’s ruthless destruction of Ukraine — a major producer of both energy and food — is a major reason for the rise of world inflation. Two rate hikes by Russian officials […] More
Central Bank Watch
ECB Flags Interest Rate Normalization to Counter Above-Target Inflation
June 10, 2022
Yesterday’s scheduled meeting of the European Central Bank’s Governing Council made news, pre-announcing a likely 25-basis point rise in policy interest rates (currently a zero percent refinancing rate flanked by a negative 0.5% deposit rate and a 0.25% marginal lending facility rate). In addition, a released statement flagged a likely rate hike of more than […] More
Central Bank Watch
Central Reserve Bank of Peru
June 10, 2022
The Central Reserve Bank of Peru also raised its policy interest rate yesterday. The size of the hike, like ones each month since September 2021, was by 50 basis points, and the new rate level of 5.5% compares to 0.25% a year ago. Peruvian CPI inflation last month rose to 8.1%, most since 1998, but […] More
New Overnight Developments Abroad - Daily Update
Inflation Rising, Central Bankers Reacting, Dollar Firmer, and Equities Troubled
June 10, 2022
The dollar rose overnight by 0.4% against sterling and 0.2% relative to the euro, Swiss franc, and in weighted terms. The dollar alternatively dropped against the ruble, Australian and New Zealand dollars and Japanese yen. Following yesterday’s sharp drop in U.S. share prices, equities fell 1.5% in Japan, 1.3% in Indonesia and Australia, 1.6% in […] More
