Percentage Point Cut in Overnight Deposit Rate Still Leaves Such at 24%, well above 13.9% CPI Inflation May 22, 2025 Today’s interest rate cut at the Central Bank of Egypt had been anticipated but was considerably smaller than prior and initial cut of 225 basis points done in April. A released statement attributes a significant…
Sri Lankan Interest Rate Cut May 22, 2025 The Central Bank of Sri Lanka also reduced its policy interest rate by 25 basis points from 8% to 7.75%. In light of a rise in Sri Lankan consumer price deflation of -2.0% in April versus -4.2% just two months earlier, analysts were not expecting a cut….
The Sounds of Chaos May 22, 2025 In the wake of the tax-cutting and deficit-engorging bill approved by the U.S. House of Representatives last night, The 30-year Treasury bond yield rose as high as 5.154%, its most elevated level since mid-2007 just weeks before the start of the subprime financial market crisis that triggered the…
Yankees Resilience May 21, 2025 A series of setbacks for the New York Yankees that began with losing the 2024 World Series to the Los Angeles Dodgers in five games last October was followed by off-season losses of their second best hitter, a starting pitcher and two top relief pitchers, and continued into the 2025…
Central Bank Rate Cuts of 25 Basis Points in Jamaica, Indonesia and Iceland May 21, 2025 The Bank of Jamaica implemented its fifth 25-basis point reduction since last August. The new rate level of 5.75% contrasts with 7.0% maintained previously from November 2022. The vote to undertake this latest cut was unanimous and, according to…
Weakness of Bonds and Dollar Extends Further May 21, 2025 Ten-year sovereign debt yields climbed overnight by six basis points the U.K., France, Italy and Spain, by five basis points in the United States and Germany, and by two basis points in Japan. The weighted DXY dollar index fell 0.5% so far this Wednesday to…
Interest Rate Cuts in Australia and China May 20, 2025 Australia’s OCR cut of 25 basis points to a 23-month low of 3.85% today was the second such move since February, but Governor Bullock and a released statement acknowledged significant changes since that initial reduction. Price risks have diminished, while the global landscape for growth…
Producer Price Disinflation and Chinese and Australian Interest Rate Cuts May 20, 2025 The U.S. dollar’s biggest overnight move was a 0.9% advance against the Australian dollar that followed an as-expected cut in the Reserve Bank of Australia Official Cash Rate but also a more dovish-than-expected statement and press conference explaining the action. The weighted…
Australia’s stock market experienced a modest rebound on Tuesday, with the S&P/ASX 200 Index advancing by 0.6% to close at 8,343. This rise marked the end of losses from the previous session, driven by the Reserve Bank of Australia’s decision to lower the interest rate by 25 basis points to a two-year low. The index,…
Fresh Concerns about U.S. and Chinese Economies May 19, 2025 (191) Two related developments conspired to hurt the U.S. Treasury bond markets in overnight trading. The Moody’s agency downgraded their rating of U.S. federal debt to Aa1 from Aaa, projecting sizable additional increases over the coming decade in both debt to 134% of GDP from…