ECB Expected to Announce Stimulus Package Including Deposit Rate Cut
Coronavirus originated from Wuhan, China has become an pandemic affecting about 90 countries and territories in the world. In the Eurozone, the top 3 economies have reported totally 11,800 cases so far, with Italy alone taking up over 9,000 cases....
Fed’s Emergency Cut Reveals the Lack of Tools to Deal with Corona-Crisis
The Fed implemented an emergency rate cut of -50 bps on Tuesday, just two weeks ahead of the FOMC meeting scheduled on March 18. The Fed funds rate range now stands at 1-1.5%. While the move is not entirely surprising,...
RBA Cut Rate to 0.5%, Being the First Central Bank to Ease Due to Coronavirus
RBA becomes the first central bank to cut interest rate in light of the negative impacts from the coronavirus outbreak. The central bank lowered the cash rate by -25 bps to 0.50% in March, expected to ease further in the...
Bets of BOC Rate Cut Increased as Domestic Growth Loses Steam while Coronavirus Gets More Worrying
The market has priced in a 60% chance of a BOC rate cut this week, up from virtually 0% two weeks ago. While moderation in domestic growth has suggested that further easing is likely, the coronavirus outbreak and its impact...
RBA to Keep Powder Dry Next Week, Could Push Forward Rate Cut to April
RBA is expected to leave the Bank rate unchanged at 0.75% in March. However, disastrous coronavirus outbreak in China is expected to hurt Australia’s economy, triggering the members to push forward further easing in as soon as April. Indeed, the...
Uncontrollable Coronavirus Spread Could Force the Fed to Resume Easing
The FOMC minutes for the January meeting revealed that policymakers remained content about the domestic growth outlook. However, they acknowledged the growing uncertainty emerged from the coronavirus outbreak. This could present significant downside risks to global growth. The situation of...
RBA Minutes Reveal that Members Consider Cutting Rates Below 0.75%, Warn of Coronavirus Uncertainty
In contrast to February’s RBA meeting statement, which demonstrated a less dovish outlook, the minutes revealed that the members considered lowering the policy rate further. Yet, they decided to keep the powder dry on concerns over “risks associated with very...
RBNZ’s Next Move could be Rate Hike
RBNZ left the OCR unchanged at 1%. Yet, its message came in less dovish than expected. The members were upbeat about the employment situation and inflation. While coronavirus would affect domestic economy, the impact would be short-lived. Policymakers project GDP...
RBNZ to Leave OCR Unchanged at 1% and Warn of Risks Associated with Coronavirus
RBNZ is widely expected to leave the OCR unchanged at 1%. Upbeat economic developments since the November meeting should warrant removal of easing bias in February. However, outbreak of coronavirus from China suggests that risks to global growth are greatly...
RBA Left Cash Rate at 0.75%. Less Dovish on Growth Despite Headwinds
RBA left the cash rate unchanged at 0.75%. To our surprise, policymakers appeared more upbeat on the economic outlook than we had anticipated. While acknowledging uncertainty to growth mainly driven by bushfires and China’s coronavirus, the members adopt a wait-and-see...