RBNZ Pledged to Expand QE and other Stimulus if Needed, as Risk to Outlook Skewed to Downside
As widely anticipated, RBNZ left the OCR unchanged at 0.25%. The size of QE also stays unchanged at NZD60B. Policymakers acknowledged that the spread ofcoronavirus is under control in the country for now. They also saw reasons for being more...
RBNZ Preview: Cautiously Optimistic about Recovery while Pledges to Do More if Needed
RBNZ is likely to leave the OCR unchanged record low of 0.25% in June. Meanwhile, the size of the LSAP program (QE) will also stay at NZD 60B. Control of the coronavirus pandemic in the country has been more effective...
BOE Expands QE Size, but Slows Pace of Purchases
BOE turned out to be less pessimistic than we had anticipated. The members acknowledged that global economic contraction in 2Q20 will be “less severe than expected”. While the size of QE is expanded, the members will likely slow the pace...
SNB Intervened Aggressively to Weaken Franc and Pledged to Continue So
SNB left the monetary policy unchanged in June. Meanwhile, the members reiterated the commitment to intervene in the currency market as Swiss franc has remained “highly valued”. Economic and inflation forecasts for this year were sharply downgraded as a result...
BOE to Expand QE and Discuss Negative Rates
Although there are signs that the coronavirus outbreak in the UK is stabilizing, its economic impact has just been emerged. Record contraction in GDP, sharp slowdown in inflation and weak employment indicators suggest that the BOE would have to maintain...
FOMC Signals to Increase Asset Purchases in Coming Months
As expected, FOMC left its monetary policy measures unchanged and downgraded the macroeconomic outlook. The members also project that the policy rate will stay unchanged through 2020. The accompanying statement showed few changes. Yet, the pledge to increase purchases by...
FOMC Preview – Standing Ready to Add Stimulus Despite Signs of Recovery
While we do not expect any change in monetary policy at the June FOMC meeting, there are a number of things that should be watched for. Chair Jerome Powell will discuss the economic outlook and the monetary policy stance at...
ECB Expands and Extends PEPP, after Sharply Downgrading Inflation
ECB’s increase in stimulus was slightly more than we had anticipated. The move was mainly driven by the sharp downgrade in inflation outlook. The decision has sent a strong message to the market that the central bank is “undeterred” by...
BOC Turns More Optimistic About Economy, Scales Back Term Financing
Turning more optimistic on the economic outlook, BOC scaled back some term financing facilities, while leaving the policy rate and QE programs unchanged. Policymakers suggested that the impacts of the coronavirus pandemic have peaked, despite ongoing uncertainties. The members have...
ECB Preview – Lagarde to Expand PEPP and Sharply Downgrade GDP and Inflation Forecasts
We expect ECB to add more stimuli and downgrade it macroeconomic projections at the upcoming meeting. It is likely that the more flexible PEPP will be expanded and extended. Previous meetings suggest that the members are reluctant to lower the...