ECB Preview – President Draghi’s Last Speech to Remain Dovish as He Leaves a Divided ECB to Largarde
In his last meeting as the president, Mario Draghi is not expected to announce any new measures. Rather, he would be defending the needs of the stimulus package announced in September and urging for a bigger role in fiscal policy....
RBA Minutes – Sending Dovish Message by Rebuking Arguments in Favor of Keeping Rates Unchanged
In the minutes for the October meeting, RBA revealed the debate for the -25 bps rate cut. The key reasons for lowering the policy rate to 0.75% are disappointing employment and inflation data, as well as downside risk to global...
BOE Stays Put But Warns of the Market Volatility in Case of Further Brexit Delay
BOE voted 9-0 to leave the Bank rate unchanged at 0.75%. It also maintained the asset purchase program at 435B pound and corporate purchase at 10B pound. BOE also made detailed discussion on the problems stemmed from Brexit uncertainty. The...
SNB Raises Exemption Threshold for Negative Rate; CHF Rises on No Rate Cut
SNB left the policy rate unchanged at -0.75%. It reiterated the commitment to “intervene in the foreign exchange market as necessary, while taking the overall currency situation into consideration”. Additionally, the central bank adjusted the interest charged on banks’ excess...
FOMC Cut Rate by -25 bps. Third Cut Still Possible Despite Sounding Less Dovish
Fed lowered the policy rate by -25 bps to 1.75-2.00%, although market expectations of a rate cut diminished markedly ahead of the meeting. The decision was not unanimous. Yet, it revealed a more divided Fed. The updated median dot plot...
FOMC Preview – Focus on Dot Plot for Potential Third Rate Cut
Another rate cut, by -25 bps, is a done deal this week, although the market has trimmed its expectations to 66% from 92% a week ago. This would take Fed funds rate’s target range to 1.75-2%. The focus of the...
ECB Cuts Deposit Rate to Historical Low of -0.5%, Resumes QE
ECB has announced a new package of stimulus measure as inflation weakens. At the same time, the central bank revised lower both GDP growth and inflation outlooks for coming years. EURUSD initially plunged to as low as 1.0927 before a...
ECB Preview – Awaiting New Easing Package
We expect ECB to deliver a easing package at this week’s meeting. Economic developments since the last meeting have remained steady. However, growth is limited and risk is skewed to the downside. The latest economic projections will show downgrades in...
BOC Sounds Less Dovish than Expected, as Housing Market and Wage Growth Improve
BOC left the policy rate unchanged at1.75%. Policymakers’ monetary policy stance was less dovish than previously anticipated. While showing more concerns about US-China trade war and downplaying GDP growth in the second quarter, the members described the current monetary policy...
RBA Left Rate Unchanged, More Flexible on Future Policy Decision
As expected, RBA left the cash rate unchanged at 1% in September. The accompany gin statement is largely unchanged from the previous one. RBA has not made any hints about a rate cut next month. Policymakers might want to take...