Central Bank Watch
Bank of Mexico Doubles Size of Incremental Interest Rate-Cutting Cycle that Began Six Months Ago
February 6, 2025
Six months passed after Mexican consumer price inflation peaked at 8.7% in September 2022 before the Bank of Mexico’s overnight interbank interest rate reached its highest level of restraint. That rate was then left at 11.25% for a full year from March 2023 until an initial 25-basis point cut in March 2024. After then making […] More
Central Bank Watch
Czech Interest Rate Cut
February 6, 2025
The Czech National Bank‘s two-week repo rate’s 25-basis point cut to 3.75% today is the fourth such move since August after 225 basis points of reduction between December 2023 and the middle of last year. A peak of 7.0% had been maintained for a year and a half. Czech CPI inflation, partly in response, fell […] More
Central Bank Watch
British Rate Cut Motivated By Soft Growth
February 6, 2025
The Bank of England’s rate cut to 4.5% from 4.75% was primarily motivated by weaker British economic activity than central bank officials had been assuming. GDP growth over the four quarters ending in the current one is projected to be a mere 0.4%, prompting a halving of the projected 2025 growth rate to just 0.75%. […] More
New Overnight Developments Abroad - Daily Update
Contrasting European and U.S. Data Trends Support Dollar
February 6, 2025
Compared to Wednesday closing levels, the dollar shortly before the opening of U.S. equity markets had strengthened by a further 0.4% against the euro, Aussie dollar and even sterling despite an as-expected announced 25-basis point cut in the Bank of England’s policy interest rate. The Czech National Bank’s key rate also was sliced by 25 […] More
