Central Bank Watch
Bank of Mexico’s 50-Basis Point Rate Hike Exceeds Expectations of Half That Much
February 9, 2023
Mexico’s overnight interbank rate has undergone big swings since the onset of the Covid Pandemic at the start of 2020. The Bank of Mexico’s Board cut such from 7.25% to 4.0% between February 2020 and February 2021, then hiked the rate by 150 basis points over the balance of 2021 and by an additional 500 […] More
Central Bank Watch
Amid Elevated Inflation, Another Swedish Interest Rate Hike Made, and It Won’t Be the Last
February 9, 2023
The Executive Board at the Swedish Riksbank hiked their policy interest rate to a 15-year high of 3.0% from 2.5%. The pace of the central bank balance sheet reduction will also be increased in April via outright selling of Swedish government bonds, and the Board’s statement includes forward guidance indicating ” that the policy rate […] More
Central Bank Watch
Serbian Interest Rate Hike
February 9, 2023
Executive Board members at the National Bank of Serbia today authorized their 11th consecutive interest rate since April, but the 25-basis point size of the increase both today to 5.5% and at January’s policy review were only half the 50-bp size of the final four hikes done in 2022. Tightening began last April from a […] More
New Overnight Developments Abroad - Daily Update
Dollar Down in Pre-Open Trading
February 9, 2023
The dollar fell broadly overnight, dropping 0.9% against the Australian and New Zealand dollars, 0.7% versus sterling, 0.5% relative to the euro and in weighted terms, 0.4% vis-a-vis the Japanese yen and Canadian dollar and 0.2% against the Chinese yuan. Equity markets have strengthened amid favorable earnings reports and soothing remarks from President Biden touting […] More
