BOC Preview: Will Poloz Maintain Hawkish Stance?
Bank of Canada is expected to keep its policy rate unchanged at 1.75%, after a rate hike of +25 bps in October. Despite bets of another move this month, we believe policymakers would take a wait- and- see mode to...
RBA More Concerned about Housing Markets, Disinflation Likely Keeps Policy Rate Unchanged for 2019
As widely expected, RBA left the cash rate unchanged at 1.5% for the 26th consecutive meeting. The accompanying statement contained little new information. Yet, it revealed that the members were dovish about the housing market. Meanwhile, disinflation in Australian economy...
FOMC Minutes Signals Rate Hike “Fairly Soon”, Policy Outlook Masked by Tariff and Debts
The FOMC minutes for the November revealed that the members still considered a rate hike in December is appropriate. Yet, they debated on the change in forward guidance regarding the pledge on “further gradual increases” in the policy rate. Some...
Fed Chair Powell’s U-Turn on Interest Rates?
Stock markets rallied after Fed Chair Jerome Powell’s speech at the Economic Club, New York. Market players were thrilled amid their interpretation that Powell has turned dovish, probably succumbed to Trump’s endless criticism. We do not see an abrupt turn...
ECB Might Keep Policy Rates Low for Longer, Given Downside Risk to Growth and Trade War
ECB has tilted its tone on the economic outlook recently. In the minutes for the October meeting, ECB acknowledged “uncertainties and fragilities” in the economy. The members noted that risks to the economic outlook is skewed to the downside as...
Australia: Low Unemployment Rate Masks Underlying Problems in Job Market
RBA has sounded confident in the domestic growth outlook in both. On the job market, the members acknowledged the decline in unemployment rate and indicated the “notable” fall in youth unemployment. The central bank forecast that employment growth would be...
Limited News from FOMC, December Rate Hike Hopes Unaltered
As widely anticipated, FOMC left the target range for the federal funds rate unchanged at 2.00-2.25% at its November meeting. The changes in the accompanying statement were limited. This is not unusual as the November meeting is in between important...
RBNZ Affirmed the Next Move Can be Up Or Down, Despite Upbeat Data
RBNZ left the OCR unchanged at 1.75% in November. The move had been widely anticipated. Despite recent strong dataflow, the central bank downplayed the improvements and Governor Adrian Orr affirmed that the next rate change can be up or down....
RBA Turns More Upbeat Over GDP Growth, Keeps Rates Unchanged amidst Low Inflation
The RBA meeting this month is a non-event. As widely anticipated, the members left the cash rate unchanged at 1.5%, for the 25th consecutive meeting. The members remained upbeat over the economic outlook, expecting the job market to strengthen further...
FOMC Preview – Affirming a Strong Economic Case for December Rate Hike
The aim of the FOMC meeting later this week is to prepare the market for a December rate hike. While the recent stock market crash and slowdown in inflation have trimmed bet for a December rate hike to 77.5% from...