January 2025 in Figures February 1, 2025 Net movements in the dollar last month were minimal despite a change in the U.S. federal government that could have profound effects on the economies of other countries and how such interact with America. Ten-year sovereign debt yields also changed to a lesser extent than in December. European…
Next Week’s Menu: February 1-7, 2025 January 31, 2025 Central Banks: Monetary policy reviews at the Bank of England, Bank of Iceland, Czech National Bank, National Bank of Poland, Bank of Mexico, and Reserve Bank of India. A summary of the most recent Bank of Japan Board meeting and the Bank of England’s quarterly Monetary…
Central Bank of Argentina Interest Rate Cut to 39% from 42% January 31, 2025 The Central Bank of Argentina’s policy interest rate has been reduced another 300 basis points following a similar cut in December, a five percentage point reduction in November and a combined 60 percentage points of easing in the first half of…
Dollar and Equities Up on Day Before Threatened Tariff Hike January 31, 2025 The dollar rose overnight by 0.8% against the Mexican peso, 0.4% relative to the yen and won, 0.2% vis-a-vis the Chinese yuan, and 0.1% versus the euro and sterling. Stock markets remained on holiday in China, Taiwan and Hong Kong but rose…
25-Basis Point Interest Rate Cut at the South African Reserve Bank January 30, 2025 South Africa’s policy interest rate, as expected, was cut today. The reduction to 7.50% from 7.75% was by the same increment as the previous and first cut done at November’s policy review. Previously, the interest rate had crested and stayed at…
25-Basis Point Cut in European Central Bank Interest Rates January 30, 2025 As was expected, the Governing Council of the European Central Bank undertook a fifth interest rate cut, and its size was 25 basis points. The cutting edge deposit rate was lowered to 2.75% versus 4.0% prior to last June’s initial reduction. A released…
Brazilian Selic Interest Rate Hiked to 13.25% from 12.25% January 30, 2025 The Central Bank of Brazil’s Selic interest rate was hiked by another full percentage point, matching the increase made at December’s meeting and bringing the cumulative rise since September to 275 basis points. At 13.25%, the new rate level is its highest since…
FOMC Statement and Press Conference January 29, 2025 As expected, there was no change made in the 4.25-4.50% federal funds rate target, and balance sheet reduction will continue as previously indicated. Several tweeks were made to the FOMC’s characterization of U.S. economic trends: December’s statement called unemployment stabilized at a low level; this month joblessness…
Potential for Tension Between Trump and Fed January 28, 2025 During his first term as president, the relationship between the Trump and Federal Reserve policymakers was contentious. After the Fed Chairman then and now warned of adverse financial market repercussions from trade sanctions, Trump characterized Japan Powell as an enemy of America. It did not…
Market Focus Returns to Central Bank Policies January 28, 2025 The Federal Open Market Committee’s first of eight scheduled policy reviews in 2025 begins today. Tomorrow’s second day will end with an announcement likely to be neutral in tone and devoid of any further cut in interest rates this time but dispelling of the possibility…