ECB Preview – Awaiting Actions in Response to Higher Yield and Revisions on Economic Forecasts
Macroeconomic developments have changed significantly since the January ECB meeting. One of the most prominent developments is the rise in inflation expectations and bond yields. As the ECB has pledged to maintain a accommodative monetary policy, it would be of...
BOC Preview: Caution over Pandemic Uncertainty while acknowledging Better-than-Projected Growth
The BOC will leave its policy rate and the size of the QE program unchanged at this week’s meeting. While there will be no press conference and updated economic projections will not be released until April, policymakers will address the...
RBA Review – QE Might Increase Further to Curb Rising Yields and Exchange Rate
As widely anticipated, the RBA left all monetary policy measures unchanged. As a summary, the cash rate target, the 3-year Australian Government Bond ‘Yield Curve Control’ (YCC) target and the Term Funding Facility (TFF) interest rate all stay at 0.1%....
RBA Preview – Assessing Impacts of Rising Yields on Economy after Unexpected Increase in Bond Buying
At tomorrow’s meeting, the RBA should leave all monetary measures unchanged. The cash rate, 3-year yield target and the rate on the TFF program will stay unchanged at 0.1%. The QE program will likely remain intact as the central bank...
RBNZ Upgraded Economic Forecasts, NZD Shot Higher
The RBNZ delivered a more upbeat statement at today meeting. While leaving the monetary policy measures unchanged and warned of the uneven economic recovery, the staff upgraded the economic projections significantly. Policymakers also introduced a new forward guidance which suggests...
Fed Powell Cautioned about Uneven Recovery, Pledged to Maintain Stimulus
At the testimony before the Senate, Fed Chair Jerome Powell cautioned that the economic recovery is uneven. He pledged to maintain sufficient support to achieving the employment and inflation targets. Concerning economic developments, Powell refrained from sending a too optimistic...
RBNZ Preview – Policymakers to Sound Less Dovish with Yields and NZD Strengthened
We expect the RBNZ to deliver a less dovish message in the upcoming meeting. Economic data released since the November meeting have been encouraging, with the price level and the job market on track to reach the target. These should...
Fed Cautiously Optimistic about Recovery with Fiscal Support. USD Upside Limited as Accommodative Policy Remains in Place
The FOMC minutes for the January meeting revealed that policymakers were cautiously optimistic over the economic outlook. Meanwhile, it also dampened hopes of tapering. US dollar’s rebound has been driven by more upbeat economic data and rising yields. However, the...
BOE Upbeat about Inflation Outlook. Negative Rate Seems Unlikely although It is Not Ruled Out
As expected, BOE left the Bank rate unchanged at 0.1%. Meanwhile, the QE program also remains at 875B pound worth of government bonds, and 20B pound of corporate debt. The economic projections reveal that policymakers are more optimistic about inflation...
RBA Extends Asset Purchases of AUD 100B Until September
RBA announced to extend the asset purchase program by an additional AUD100B as the current program ends in mid- April. Meanwhile, it has turned more upbeat about the global and domestic economic outlook, and upgraded GDP and employment forecasts. RBA...