The Czech Central Bank Board reaffirmed the 0.75% level on its key two-week repurchase rate.  Eight reductions from August 2008 to May 2010 totaled 300 basis points.  The last cut from 1.0% to 0.75% in May of last year was the only rate change made in 2010.  Today’s action was universally anticipated.  Current CPI inflation [...]

Turkey’s unorthodox monetary experiment continues.  The strategy implemented in late 2010/early 2011 combines low interest rates with a wider corridor between borrowing and lending rates, and higher reserve ratios and is intended to prevent second-order inflation from elevated commodity prices while also dissuading short-term capital inflows and dampening upward pressure on the lira that undermines [...]

The Fed’s message — a dovish view on the economy, resignation that there’s not much else that policymakers can offer, uncertainty about how much time it will take for long-term balance sheet adjustments to be worked out, and considerable concern about long-term fiscal prospects –  was not received well. Eurozone flash purchasing manager readings signal [...]

After recent meetings, the FOMC had been releasing statements that hardly changed language and bordered on being boring.  This time was different. The elements of surprise did not involve the actions taken. The federal funds target was left at 0 to 1/4%. The full $600 billion of longer-term Treasury buying is being completed this month [...]

The Federal Open Market Committee policy statement will be released at 12:30 EDT and followed by an hour press conference at 14:15 EDT.  The statement from April 27 said the “recovery is proceeding at a moderate pace and overall conditions in the labor market are improving gradually,” but the view on commodity-inspired inflation was expressed [...]