Peoples Bank of China

Disinflationary News from U.K. and Germany Ahead of FOMC Statement

September 20, 2023

The dollar slipped overnight by 0.4% against the Australian and New Zealand currencies, 0.2% versus the euro and peso, and 0.1% relative to the Canadian dollar and Swiss Franc. Equities closed down 1.2% in India, 0.7% in Japan, 0.6% in Taiwan and Hong Kong and 0.5% in China but are currently showing overnight gains of […] More

Central Banks and U.S. Data Setting the Tone

September 14, 2023

The European Central Bank will announce its interest rate decision and revised macroeconomic forecasts within the hour. Expectations are narrowly divided between a rate hike to counter inflation and leaving policy unchanged in light of recessionary conditions and monetary restraint in the pipeline. Growth and inflation projections are apt to be respectively upward and downward. […] More

People’s Bank of China Cuts One Loan Prime Rate but Not the Other

August 21, 2023

Policymakers at the Central Reserve Bank of China took a halfway approach to enhancing policy stimulus at the August fixing of the 1- and 5-year loan prime rates for corporate borrowing and house mortgages, respectively. It was expected that each rate would be cut further following 10-basis point reductions in each done two months ago. […] More

U.S. Debt Ceiling Standoff Into the Eleventh Hour

May 22, 2023

Without a higher debt ceiling, the U.S. federal government will begin to not meet all its spending obligations by the start of June, prompting a default by mid-month, if not somewhat sooner. Biden and McCarthy are to resume talks to avert such a crisis today. Fed Chairman Powell again insinuated that banking system strains could […] More

More Banking Uncertainty

March 20, 2023

The share price of First Republic Bank plunged 32.8% on March 17, and over the weekend Swiss authorities arranged for UBS to acquire Suisse Bank. Market expectations of the Federal Reserve’s interest rate decision this Wednesday range from an increase of only 25 basis points to no change at all in the federal funds target. […] More

A $30 Billion Rescue Package for First Republic Alleviates But Doesn’t End Investor Uneasiness about the Banking System

March 17, 2023

Helped by news that 11 large U.S. banks had put together $30 billion to avoid the failure of First Republic, equities in the Pacific Rim climbed Friday by 1.2% in Japan and New Zealand, 1.6% in Hong Kong, 1.5% in Taiwan, 1.7% in Indonesia, 0.8% in South Korea, 0.7% in China and 0.6% in India. […] More

Indonesia and China

October 20, 2022

Bank Indonesia’s seven-day reverse repo rate was lifted by an expected 50 basis points to a 32-month high of 4.75%. There had been two earlier hikes this year of 25 basis points in August and 50 bps in September. At 4.75%, the rate is just 25 basis points below its pre-pandemic level of 5.0%. Indonesian […] More

Large Jump in European Long-Term Interest Rates

September 20, 2022

Today is the Astart of the FOMC’s sixth scheduled policy review in 2022.  A third straight 75-basis point hike to a range of 3.0-3.25%  is anticipated, with the announcement due Wednesday at 14:00 EDT (18:00 GMT). Meantime, officials at the Swedish Riksbank today exceeded street expectations with a policy interest rate hike of a full […] More

Tightening Monetary Policies Continue to Lift the Dollar but Depress Share Prices

August 22, 2022

Financial markets are in a risk-averse mood ahead of the annual Jackson Hole Symposium that begins at the end of this week. U.S. stock futures were down 1.0-1.5% shortly before the opening bell. European stock markets had sunk so far today by 2.1% in Germany, 1.7% in Italy, 1.6% in France and 1.0% in Spain. […] More

Rising Inflation Dampening the Mood of Consumers Around the World

May 20, 2022

Amid bear markets, investors periodically test the waters in search of good values. Today has been one such day. The week will end with huge net share price declines, but on this Friday equities closed up 3.0% in Hong Kong, 2.9% in India, 1.8% in South Korea, 1.6% in China and Singapore, 1.4% in Indonesia […] More