BOC Erases Rate Hike Possibility in Near- to Medium- Term
BOC sent a mixed message in its April meeting. As shown in the accompanying statement, it has turned more dovish as it removed any chance of rate hike in the near- to medium- term. The central bank downgraded GDP growth...
BOC to Look Through Strong March Inflation and Maintain Dovish Stance
At the BOC meeting next week, we expect Governor Stephen Poloz to reinstate the stance that the next policy rate move would be data-dependent. The latest inflation report surprised to the upside. Yet, the central bank would likely look through...
RBA Minutes – Confirming Dovish Monetary Policy Stance. Low Inflation Raises the Chance of Rate Cut
While RBA had left the cash unchanged at 1.5% in April, the minutes for the meeting was closely-watched. Recall that the central bank turned more dovish as it acknowledged more downside risks to the growth outlook. The minutes reinforced this...
ECB Review – Reinforcing Dovish Tone. TLTROs Details to be Announced in Coming Months
ECB shrugged off the improvement in the economic data since the last meeting, reinforcing its dovish stance and raising the likelihood of further easing measures. The focus of the meeting was arrangements for TLTRO III and the tiered deposit rate...
FOMC Minutes – Pouring Cold Water on Doves who Expect Rate Cut This Year
Contrary to the market which has been pricing in a rate cut later this year, the Fed affirmed in the minutes for the March meeting that the members’ consensus was no change in the monetary policy for the rest of...
ECB Preview – More Warning on Downside Risk, No Big Move Until June
Despite some improvements in the economic data released since the March ECB meeting, the overall picture remains mixed and inflation pressure is still soft. There have been plenty of discussions about ECB’s future monetary policy since the last meeting. First,...
RBA Review – Holding Rate On Record Low and Turning More Dovish on Economic Outlook
Unsurprisingly, RBA left the cash rate unchanged at 1.5% for a 29th meeting.While the members acknowledged more downside risks on the economic outlook, they maintained the monetary policy forward guidance unchanged. However, Aussie weakened after the announcement, amidst heightened expectations...
RBA Preview – Expecting a Dovish Shift on Monetary Policy Stance
The lack of momentum in economic activities would soon dent RBA’s hope of higher household consumption (and eventually higher inflation), as a result of further decline in the unemployment rate. We expect the central bank to turn more cautious at...
RBNZ Review – Next Move would be Rate Cut as Risks to Growth Skewed to Downside
As we expected, RBNZ has turned more dovish in March. A more pessimistic view about the domestic and global economic outlook has led members to adjust their forward guidance on the monetary policy stance. The members now expect to cut...
RBNZ Preview – Can RBNZ Maintain Neutral Stance amidst Deteriorating Outlook?
RBNZ is expected to leave the cash rate at 1.75% in March. However, as both domestic and global economic slowdown has intensified since the February meeting, we doubt if the central bank could maintain the guidance that next rate change...