Central Bank Watch
First Hike in Brazil’s Selic Interest Rate Since August 2022
September 18, 2024
On the same day that the Federal Reserve initiated a cycle of declining interest rates, policymakers at the Central Bank of Brazil backtracked on their own easing. There had been seven cuts totaling 325 basis points since August 2023, but officials concluded that if the Selic rate were to be left at 10.50%, the medium […] More
Central Bank Watch
FOMC Chooses Larger 50-Basis Point Rate Cut
September 18, 2024
As in September 2007, January 2001, and October 1987, the Federal Open Market Committee chose to kick off an easing cycle with a 50-basis point reduction. The verdict was not unanimous. Governor Bowman preferred to cut the federal funds target only by 25 basis points. The new deposit rate range will be 4.75-5.0%. Bowman’s dissent […] More
Central Bank Watch
FOMC Preview
September 18, 2024
The Federal Open Market Committee signaled at its last meeting at end-July that an inflection point is now at hand. Up to and including the meeting in mid-June when the “Committee remained highly attentive to inflation risks,” price stability was prioritized over the committee’s other mandate to maximize employment. This ranking made sense then because […] More
Central Bank Watch
Bank Indonesia Cuts Interest Rate for First Time since early 2021
September 18, 2024
There’s already been one central bank interest rate cut today. Officials at Bank Indonesia reduced their policy rate by 25 basis points to 6.0%, reversing the final piece of a tightening cycle that culminated this past April. A low of 3.5% had been maintained from February 2021 until August 2022. Juxtaposed against a target band […] More
New Overnight Developments Abroad - Daily Update
European Price Data Released And Now Awaiting the Fed’s Opening Rate Cut Move
September 18, 2024
Fed officials have already signaled a readiness to begin a cycle of interest rate cuts starting today but the size of this opening gambit will only then be disclosed. Investors are also hoping to get a better sense of the likely path rates take during the coming 6-12 months. The rate change’s size and updated […] More
