FOMC Minutes Reveal Dovish Notes Which Were Hidden in December
To us, the message conveyed in the FOMC minutes for the December meeting was somehow different from those at the post-meeting press conference. From the post-meeting statement and Chair Jerome Powell’s speech, we judged that the Fed turned a bit...
BOC Pushed Back Timing for Next Rate Hike, Trimmed GDP Growth and Inflation Forecasts for 2019
As we expected, BOC left the policy rate unchanged at 1.75% in yesterday. Policymakers admitted that the decline in oil price has “material” impact on the economy. Yet, they viewed the impact as transitory. Reflecting the view on economy projections,...
BOC Preview – No Change in Rates, Dovish Stance Accompanied by Modest Forecast Downgrades
We expect BOC to leave the policy rate unchanged at 1.75% at the upcoming meeting this week. Besides releasing the statement and Monetary Policy Report, the central bank would also update the economic forecasts and host a press conference. The...
BOE Turns Dovish as Brexit Deadline Nears, Yet No Deal is Secured
BOE voted 9-0 to leave the Bank rate unchanged at 0.75% in December. The committee also voted unanimously to leave the asset purchase program at 435B pound .It has turned more cautious than November, warning that Brexit uncertainty has “intensified...
FOMC Review – Fed Not As Dovish As Expected
The December FOMC meeting outcome is expected, yet unexpected. As widely anticipated, it raised the policy rate, by +25 bps, to 2.25-2.5%. The IOER rate was raised by +20bps. The members trimmed the rate hike forecasts to two, form three,...
BOJ: Loss in Communication Hinders Policy Effectiveness
The government of Japan downgrades its forecasts on GDP growth and inflation for the coming years. This evidences the failure of the transmission mechanism of the monetary policy adopted by the Bank of Japan. We believe the central bank has...
BOE Probably Turns More Cautious amid Brexit Uncertainty
At the meeting later in the week, BOE would most likely leave the Bank rate unchanged at 0.75%. It would also keep the purchases of gilts and corporate bonds remain at 435B pound and 10B pound, respectively. BOE sounded hawkish...
Fed Likely Hikes Rate in December, Future Path More Dovish
While the majority of market participants (including us) expects the Fed to raise the policy rate, by +25 bps, to 2.25-2.5% at the December meeting, this is far from fully priced in. CME’s Fed funds futures suggest that the market...
ECB’s Reinvestment of QE Proceeds Would Well- Pass First Rate Hike. Growth Outlook Downgraded
ECB made a much of announcement at the December meeting. Yet, most of them had been widely anticipated by the market. What we want was confirmation. The members formally indicated that the asset purchase program (QE) would end by this...
ECB Preview – Focus on Reinvestment Plan, New Round of TLTRO
The market is closely watching ECB’s policy after QE. At the upcoming meeting next week, ECB would announce its plan to reinvest the maturing bonds. Meanwhile, market speculations are rising that the central bank would soon announce a new round...