Central Reserve Bank of Peru
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
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
Investor Bottom-Fishing
May 13, 2022
Within bear markets, brief interruptions happen typically as investors pause to take in the carnage and test markets to see if perhaps enough has been lost to secure a trend reversal. Today’s been one such instance. Share prices rose in Pacific Basin markets by 2.7% in Hong Kong, 2.6% in Japan, 2.1% in South Korea, […] More
Peruvian Central Bank Rate Hike
May 12, 2022
The Central Reserve Bank of Peru’s policy interest rate had been at 2.25% when the pandemic struck in early 2020. Back-to-back percentage point cuts in March and April pinned the rate at 0.25% where it remained for fifteen months. Peruvian CPI inflation of 1.6% in June 2020 had constituted an 18-month low and in the […] More
Another Peruvian Interest Rate Hike
April 8, 2022
At this month’s scheduled monetary review, the Central Reserve Bank of Peru lifted its policy interest rate by 50 basis points to 4.5%, its highest level since 2009. While the Fed only within the past month entertained the thought of raising interest rates by increments greater than 25 basis point (something not done in decades), […] More
More Bad Inflation News and a Diversity of Central Bank Decisions
April 8, 2022
The dollar continued to trade at historically firm levels overnight. The weighted DXY dollar index is up 0.1% and touched another multiyear high of 99.99. Gains of 0.5%, 0.3% and 0.2% were made against the New Zealand, Australian and British currencies, but the greenback dipped 0.2% versus the Russian ruble. Asian stock markets made modest […] More
Another Peruvian Central Bank Interest Rate Hike
March 11, 2022
Monetary policy normalization continues in Peru, where CPI inflation has risen from 2.4% last April to 6.15% last month. There have now been eight policy rate hikes in all, starting with a 25-basis point increase to 0.5% then and followed by seven consecutive half percentage point hikes. The Central Reserve Bank of Peru‘s interest rate […] More
Many Investors Revising Expected Fed Tightening Upward as Inflationary Pressure Spreads and Other Central Banks Move Aggressively
February 11, 2022
There were further repercussions today in the aftermath of Thursday’s U.S. January CPI release. Some analysts now think that the federal funds rate could be hiked at every remaining FOMC meeting this year, and there’s been more speculation over the possibility of larger incremental moves than the standard of 25 basis points. The ten-year U.S. […] More
Peru’s Monetary Policy Interest Rate Also Hiked by 50 Points but Still Below Inflation
February 10, 2022
Today’s increase was the fifth straight month with a half-percentage point increase and preceded by a 25-basis point initial rise last September. But at 3.5%, the new policy rate level of the Central Reserve Bank of Peru over two percentage points less than CPI inflation of 5.68% in January. More increase are probable in this […] More
Case Keeps Rising for Early Rise in Fed’s Interest Rate
January 7, 2022
The case is growing for an FOMC rate hike in March. From a monetary policy standpoint, Fed officials are expected to pay more attention to faster-than-expected wage growth and lower-than-forecast unemployment last month than to December’s 199k rise in jobs, which was only half as much as predicted. For one thing, employment growth in October-November […] More
