Brazil Central Bank Left Rates Steady for Fourth Month at 13.75%, Cautious Due to Fiscal Risk

Banco Central do Brasil​ kept its benchmark interest rate unchanged for the fourth consecutive meeting in February 2023, in line with market expectations. The Central Bank last year having aggressively hiked its benchmark interest rate with twelve consecutive interest rate hikes since 2021 when the bank began its current tightening cycle early last year, the Selic was at a record low 2%. The lending rate is now at its highest level since 2017. Policy makers are seeing signs of easing … Continue reading “Brazil Central Bank Left Rates Steady for Fourth Month at 13.75%, Cautious Due to Fiscal Risk”

Bank Negara Malaysia Leaves Interest Rates Unchanged to Assess Previous Hikes Impact

The central bank of Malaysia, Bank Negara Malaysia surprised markets by leaving its key overnight policy rate steady at 2.75% in the first meeting of 2023 on Thursday. Markets had forecast a 25bps increase. Bank Negara said it wants to assess the impact of the previous four rate hikes. Policymakers noted that the current policy stance remains accommodative and supportive of economic growth and further normalization would depend on the evolving conditions and their implications to the domestic inflation and growth … Continue reading “Bank Negara Malaysia Leaves Interest Rates Unchanged to Assess Previous Hikes Impact”

Potential Future Black Swans in an Uncertain World

It is difficult to predict exactly what black swan events might occur in the future, as these events are by definition rare and unexpected. Critical thinking around past black swans gives a range of possibilities including, pandemics, cyber-attacks, natural disasters, major technological breakthroughs or disruptors, or a geopolitical event, such as a war or a political crisis. Of course, by their very nature the black swan could be from something totally unthought of. Expect the unexpected as a good way … Continue reading “Potential Future Black Swans in an Uncertain World”

Malaysian Ringgit and Kuala Lumpur Stocks Soar After Anwar Ibrahim Appointed PM

The Malaysian ringgit and the main Kuala Lumpur stock index soared Thursday amid easing political turmoil. Malaysia’s king appointed long-time opposition leader Anwar Ibrahim as prime minister Thursday as the country’s 10th prime minister. The FTSE Bursa Malaysia KLCI Index jumped just over 4 per cent to close at 1,501.88 points in its strongest single day increase since March 2020. Malaysian ringgit strengthened by almost 2% to above $4.5 on Thursday, the sharpest rise since March 2016 and pushing the … Continue reading “Malaysian Ringgit and Kuala Lumpur Stocks Soar After Anwar Ibrahim Appointed PM”

Who is in Xi Jinping’s Third Term Chinese Communist Party Politburo Standing Committee

China’s leader Xi Jinping officially secured an unprecedented third term as the head of the Chinese Communist party at its 20th congress held every five years. Xi unveiled a new leadership team if seven-member Politburo Standing Committee. Four of the officials are new loyalist appointees. The announcements came a day after he orchestrated the removal of former rival Li Keqiang from the party’s top ranks and further consolidating his grip on power. “I was re-elected as general secretary,” Xi said … Continue reading “Who is in Xi Jinping’s Third Term Chinese Communist Party Politburo Standing Committee”

Brazil Central Bank Pauses Rates at 13.75%, after Inflation Eased Below 10%

Banco Central do Brasil​ kept its benchmark interest rate unchanged after having aggressively hiked its benchmark interest rate by .50% to 13.75% last month. That move was the twelfth consecutive interest rate hike since 2021 when the bank began its current tightening cycle early last year, the Selic was at a record low 2%. The lending rate is now at its highest level since 2017. Policy makers are seeing early signs of easing inflation, with the annual rate below 10% … Continue reading “Brazil Central Bank Pauses Rates at 13.75%, after Inflation Eased Below 10%”

Brazil Central Bank Aggressively Raises Rates for Twelfth Consecutive Time, another 50bp to 13.75%, Signals More to Come

Banco Central do Brasil​ again aggressively hiked its benchmark interest rate by .50% to 13.75%. It was the twelth consecutive interest rate hike since 2021 when the bank began its current tightening cycle early last year, the Selic was at a record low 2%. Brazil’s annual inflation stood at 11.39% in mid-July. The lending rate is now at its highest level since 2017. The bank’s monetary policy committee (Copom) said it expects to raise the Selic signaled in September again. … Continue reading “Brazil Central Bank Aggressively Raises Rates for Twelfth Consecutive Time, another 50bp to 13.75%, Signals More to Come”

Brazil Central Bank Aggressively Raises Rates for Eleventh Consecutive Time, another 50bp to 13.25%, Signals More to Come

Banco Central do Brasil​ again aggressively hiked its benchmark interest rate by .50% to 13.275%. It was the tenth consecutive interest rate hike since 2021 when the bank began its current tightening cycle early last year, the Selic was at a record low 2%. The impact is being felt, last week, Brazil’s 12-month inflation rate declined for the first time in 2022 in May, and retail sales increased in April at the slowest pace so far this year. The lending … Continue reading “Brazil Central Bank Aggressively Raises Rates for Eleventh Consecutive Time, another 50bp to 13.25%, Signals More to Come”

Who is Attending the Davos World Economic Forum and Who Is Not

The world’s elite, well sans Russians, are hobnobbing it in the Swiss Alps at the World Economic Forum’s annual meeting in Davos from Sunday (May 22) through Thursday. The gathering was nixed for last two years with the coronavirus pandemic. Not to say the elites haven’t been trying to shape, and profit from all and sundry in that time. About 2500 participants are registered, down from 3000 at the last gathering in January 2020. What is notable is who isn’t … Continue reading “Who is Attending the Davos World Economic Forum and Who Is Not”

Brazil Central Bank Aggressively Raises Rates For Tenth Consecutive Time, Another 100bp to 12.75%, Signals More To Come

Banco Central do Brasil​ again aggressively hiked its benchmark interest rate by 1.0% to 12.75%. It was the tenth consecutive interest rate hike since 2021 when the bank began its current tightening cycle early last year, the Selic was at a record low 2%. The lending rate is now at its highest level since 2017. The bank’s monetary policy committee (Copom) said it expects to raise the Selic by a smaller magnitude. Inflation is the issue of concern. The institution’s … Continue reading “Brazil Central Bank Aggressively Raises Rates For Tenth Consecutive Time, Another 100bp to 12.75%, Signals More To Come”