Central Reserve Bank of Peru
Central Reserve Bank of Peru Lifts Interest Rate by Half a Percentage Point
November 12, 2021
At the Central Reserve Bank of Peru, the Board of Directors felt compelled to react to a 0.6 percentage point further acceleration of CPI inflation to 5.8% in October, its highest level since the start of 2009. Officials attribute the rise mostly to external factors but also mentioned the Peruvian Sol’s recent depreciation. Their hope […] More
A Mostly Inconsequential Friday
November 12, 2021
The dollar marked time overnight. It’s weighted DXY value did not climb further after reaching highs on Thursday not seen since July 2020. The dollar is also unchanged from Thursday closing levels against the euro, yen, loonie, and kiwi, up 0.3% versus the Turkish lira and 0.2% against the Swiss franc but down 0.2% vis-a-vis […] More
Numerous Inflation and Industrial Production Reports Released This Friday
September 10, 2021
There were also two central bank policy rate announcements, and each involved an interest rate increase: The Central Reserve Bank of Peru‘s Board of Directors hiked its policy interest rate twice as much as analysts were anticipating to 1.0% from 0.5%. This was the second straight increase after a hike of 25 bps in August, […] More
Central Bank Rate Hike in Peru
August 13, 2021
An interest rate hike surprise has been sprung by officials at the Central Reserve Bank of Peru. With inflation accelerating there more than half a percentage point to 3.8% in July, monetary policymakers doubled their policy interest rate to 0.5%. This increase was the first change since a pair of 100-basis point reductions in March […] More
Inflation Stays in the Spotlight
August 13, 2021
Quite a few indicators of inflation were released this Friday, among which July U.S. import prices caught the most attention. Import prices had posted monthly advances of at least 0.9% in each of the previous seven months but went up just 0.3% in July. This reduced year-on-year import price inflation by a full percentage point […] More
Stocks Attempt to Bounce but Outlook Uncertain
July 9, 2021
Following Thursday’s wave of risk aversion, equities and sovereign debt yields rose in early Friday trading, and the dollar edged lower. Several Chinese and British data were release. The People’s Bank of China cut reserve requirements by 50 basis points, which is projected to release about one trillion yuan of extra liquidity and hopefully buttress […] More
G7 Summit and a Greater-than-Expected Interest Rate Hike in Russia
June 11, 2021
Leaders of the Group of Seven (U.S., Japan, Germany, France, Italy, U.K., and Canada) are holding their annual summit in Cornwall, England. A third successive hike of the Central Bank of Russia has been engineered, and its 50-basis point increase to 5.5% exceeded forecasts of a 25-basis point move. The rate had been raised by […] More
Another Batch of Important U.S. Data Due Later Today
May 14, 2021
Thursday’s ebbing of inflation phobia in financial markets extended into overnight trading, and now investors await this morning’s release of U.S. import prices, retail sales, industrial production, and the U. Michigan index of consumer sentiment. Equity markets in the Pacific Rim rebounded 2.3% in Japan, 1.8% in China, 1.1% in Hong Kong, kand 1.0% in […] More
Large Rise in Dollar and Sovereign Debt Yields
March 12, 2021
Yesterday was a momentous day for the Biden Administration. He signed the nearly $1.9 trillion American Rescue Plan on the one-year anniversary of last year’s Covid lockdown and then gave his first prime time address to the nation, setting a goals for vaccinations and a start of permissible family gatherings. Overnight, the trade-weighted dollar climbed […] More
Dollar Rose Slightly
February 12, 2021
The dollar recovered 0.5% against the Mexican peso and New Zealand dollar, 0.3% relative to the Swiss franc and Australian dollar, 0.2% versus the euro, yen, and loonie, and 0.1% against sterling overnight. On a trade-weighted basis, the U.S. currency is up 0.2% and trading in the middle of today’s high-low corridor. Lunar New Year […] More
