StansTake

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STP-086 ……………………………………………………Date: 03/24/10

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| ? | Mystery Eyes 01 is here. | ? |

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China, India, Australia, Malaysia, Norway, and Israel Lead the Way in Gradual Withdrawal of Bank Liquidity.

One of the caveats we mentioned in our last post was the coming withdrawal of financial liquidity by central banks around the world.

The process is clearly underway as India has now joined China, Australia, Malaysia, Norway, and Israel in the gradual withdrawal of monetary liquidity from their respective economies.

The Reserve Bank of India recently increased it’s reverse repurchase rate to 3.5% from a record low 3.25%.  This was done because two high-ranking bank officials said that inflation in India has become “imperative”.

Furthermore, the treasurer of BNP Paribas in Mumbai stated, “This is just a sign of things to come.  A 25 basis point increase does not get you there, but it sets the course.” (more…)