- Overnight Interest Rate Update 03.18.10 Thu, 18 Mar 2010 10:37 GMT
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- Mar, 18 Euro Tumbles amid Greece Concerns, U.K. Mortgage Approvals Disappoint
- Mar, 17 BoE Remains Cautious Despite Unexpected Improvement in Labor Market
- Mar, 16 European Investor Confidence Weakens for a Sixth Consecutive Month
- Mar, 15 Euro-Zone Employment Extends Five Month Decline, Swiss Producer & Import Prices Tumble in February
- Mar, 12 Candian Unemployment Unexpectedly Falls As Full-time Hires Soar
- Mar, 10 A Drop in German Exports Casts Doubt on Recovery
- Mar, 09 Declining U.K. Exports Threatens Recovery, Keeping BoE on Alert
- Mar, 08 German Industrial Production Disappoints, As Construction Suffers.
- Mar, 05 Rising UK Factory Gate Prices May Force BoE to End QE
- Mar, 04 BoE Remains on Hold, No Statement Leaves Markets Guessing
- Mar, 02 Euro-Zone Inflation Slows Allowing ECB To Remain On Hold
- Mar, 01 Drop in U.K. Mortgage Approvals Raises Outlook For More QE
- Feb, 26 Stronger Than Expected U.K. Growth Creates Difficult Decision For BoE
- Feb, 24 German Growth Flat as Strong Demand From Abroad Offsets Domestic Weakness
- Feb, 23 U.K. Mortgage Approvals Decline, Opening the Door For More QE
- Feb, 19 U.K. Retail Sales Weaken More Than Expected, Euro-Zone Manufacturing Strengtens in February
- Feb, 17 U.K. Jobless Claims At Highest Since April 1997, Euro-Zone Trade Surplus Widens in December
- Feb, 16 U.K. Inflation Rises to 14-Month High, German Investor Confidence Tumbles for 5th Month
- Feb, 12 Euro-Zone GDP Stalls As Industrial Production Falters
- Feb, 11 ECB Raises Forecasts For Growth and Inflation But Deem Rates Appropriate
The BoE left their benchmark rate unchanged at 0.50% today but added £25 billion to their asset purchase program to bring the total to £200 billion. However, the central bank was upbeat in their post release comments stating that banks funding conditions have improved and a pickup in U.K. activity may soon be evident.
Fundamental Headlines
• Fed Affirms PlanTo Keep Rates Low – Wall Street Journal
• Australian Trade Gap to Slow GDP – Wall Street Journal
• China faces WTO inquiry over exports – Financial Times
• Bank of England Boosts Bond-Purchase Plan Less Than Forecast in Third Step – Bloomberg
• ECB Keeps Key Rate at Record Low of 1%, May Move Closer to Stimulus Exit -Bloomberg
EUR/USD – The European Central Bank kept their target interest rate at 1.00% as expected as policy makers continue to view rate are appropriate or the current environment. Indeed, the Euro-zone retail sales report showed that consumption fell for a 16th month on an annualized basis in September. Purchases from a year ago dropped 3.6% versus forecasts of 2.4% despite a 0.7% increase during the month of September. Policy makers may take some solace in the fact that domestic demand has started to show signs of life as economists were expecting a 0.2% rise on the month. Regardless, the central bank will maintain their measured approach unless inflationary pressures rise, which would force them to begin tightening as the look to adhere to their price stability mandate.
GBP/USD – The BoE left their benchmark rate unchanged at 0.50% today but added £25 billion to their asset purchase program to bring the total to £200 billion. However, the central bank was upbeat in their post release comments stating that banks funding conditions have improved and a pickup in U.K. activity may soon be evident. Indeed, today’s industrial production release showed activity rose in September by 1.6% which surpassed estimates of 1.2%. The MPC would go on to warn that inflation is likely to rise sharply in the near-term on the back of a weaker pound and stronger growth. Therefore, policy makers may start to consider tightening monetary policy sooner than previously expected as the try and stem rising consumer prices.
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More Articles
- Euro Tumbles amid Greece Concerns, U.K. Mortgage Approvals Disappoint
- BoE Remains Cautious Despite Unexpected Improvement in Labor Market
- European Investor Confidence Weakens for a Sixth Consecutive Month
- Euro-Zone Employment Extends Five Month Decline, Swiss Producer & Import Prices Tumble in February
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