The Central Reserve Bank of Peru did not implement an eleventh rate hike since May 2010 today, fooling analysts.  A statement today seized upon a drop of CPI inflation to 3.1% last month from 3.4% in April and 2.7% in March to justify the pause and also noted somewhat slower economic growth signaled by some [...]

The Bank of Korea, whose Base Rate was slashed from 5.25% prior to August 2008 to 2.0% six months later, announced its fifth increase of 25 basis points today.  The rate is now at 3.25%, representing a 38.5% reversal of the previous stimulus.  Monetary officials had not raised rates at either of its prior two [...]

British industrial production plunged 1.7% on month in April and was 1.2% lower than a year earlier.  Factory output dropped 1.5%.  These monthly changes are much worse than anticipated.  Industrial output in March had only risen 0.2%.  British producer price inflation meanwhile slowed last month, further killing any chance of an early Bank of England [...]

The United States and Canada released April trade figures.  The headline U.S. goods and services deficit looked encouraging, contracting $3.1 billion or 6.7%, but the census-basis merchandise trade shortfall only narrowed $15 million (0.03%) and was concentrated in an 11.5% decline in the deficit with OPEC.  The deficit with China was $3.5 billion wider in [...]

A statement from the ECB signals a likely increase of interest rates next month.  Sufficient justification for a second tightening by July was provided by the Bank staff’s revised price and growth projections, the evolution of which can be seen below.  Both estimates for year 2011 were revised higher, especially CPI inflation, which is now [...]