Central Bank Watch
Central Bank of Thailand
January 25, 2023
Officials today at the Central Bank of Thailand raised their interest rate benchmark from 1.25% to a 3-1/2 year high of 1.50%. This was the fourth 25-basis point increase since last August. CPI inflation rose to a 2-month high in December of 5.9%. That’s still down from August’s peak of 7.9% but well above the […] More
New Overnight Developments Abroad - Daily Update
Investors Anxious Over Several Matters
January 25, 2023
Although down from 2022 highs in many places, inflation remains too elevated for central bankers to feel comfortable. Many data including this week’s spate of purchasing manager surveys are consistent with a contraction of GDP in this first quarter of 2023. The war in Ukraine and proliferation of mass shootings in the United States are […] More
Central Bank Watch
Central Bank of Nigeria
January 24, 2023
In Nigeria where consumer price inflation of 21.3% last month was not far below November’s 17-year high of 21.5%, officials at the central bank raised their policy interest rate by another full percentage point to 17.5% at their first scheduled review of 2023. The rate had been at 11.5% from July 2020 until a 150-basis […] More
New Overnight Developments Abroad - Daily Update
Directionless Tuesday Evokes a Hazy Shade of Winter
January 24, 2023
Many markets in Asia including China, Taiwan, Hong Kong, Malaysia, South Korea, Vietnam and Singapore remained closed for the Lunar New Year holiday. Equities closed down 0.4% in the Philippines, 0.2% in Indonesia, and unchanged in India but up by 0.4% in Australia and 1.5% in Japan. Stock markets in Europe are currently unchanged in […] More
Central Bank Watch
Pakistani Central Bank Rate Increased to 17%
January 23, 2023
The State Bank of Pakistan‘s policy rate has been raised a full percentage point to a 24-year high of 17.0%. That’s 10 percentage points above the pandemic low of 7% that prevailed from June 2020 until an initial 25-basis point hike in September 2021. The previous rate hike in November was also by a full […] More
New Overnight Developments Abroad - Daily Update
Lunar New Year Holiday Quells Monday Financial Market Activity
January 23, 2023
Financial markets in China will be shut all week for the Lunar New Year holiday that ushers in the Year of the Rabbit. Hong Kong, Taiwan, Indonesia, Malaysia, Singapore, South Korea, and Vietnam are also closed today. The euro touched a nine-month high overnight of $1.0923 but subsequently settled back under $1.09 to a net […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: January 21 – 27, 2023
January 20, 2023
Central Banks: Interest rate policy meetings are scheduled in Canada, South Africa, Hungary, Chile, Colombia and Argentina. The Bank of Canada’s quarterly Monetary Policy Report and a summary of discussions at this past week’s Bank of Japan Board meeting will be released. Holidays and Special Events: The Lunar New Year holiday ushering in the year […] More
New Overnight Developments Abroad - Daily Update
Prices, Consumer Confidence, and Recessionary Worries
January 20, 2023
On this eve of the Chinese Lunar New Year holiday, investors are digesting the latest inflation data, perusing reports on consumer confidence, but also continuing to worry about the risk of recession to which many economists in both the private and public sectors ascribe better than even odds. The global economy is coming off a […] More
Central Bank Watch
Central Bank Authorities in Norway and Turkey Hold Their Fire
January 19, 2023
Norway’s policy rate was cut from 1.5% to 0% in the early months of the pandemic and not increased until September. Another hike of 25 bps to 0.5% followed in December 2021 and six more totaling 225 basis points to 2.75% followed in 2022, including a 25-bp increase last month. Officials didn’t hike further at […] More
Central Bank Watch
Another Indonesian Central Bank Rate Hike But Perhaps the Last One
January 19, 2023
From a pandemic low of 3.5% (February 2021 to August 2022), Bank Indonesia’s 7-day reverse repo rate had been raised four times by a half percentage point plus once by 25 bps during the balance of last year. A sixth 25-bp hike announced today lifts such to 5.75%, its highest level in three and a […] More
