RBA to Announce Adjustments in QE and YCC Programs
Important decisions will be made at this week’s RBA meeting. All monetary policy measures would remain unchanged. Yet, as indicated in June, policymakers would discuss on the format of QE purchases after completion of the current tranche in September, and...
BOE Preview: Not Yet Time for Tapering as Virus Resurgence Raises Economic Uncertainty
The BOE would maintain an upbeat tone at this week’s meeting. However, the uncertainty, in particular a third wave of the pandemic which has caused a delay in restriction easing, suggests that it would be too early to hint about...
Fed Projects 2 Rate Hikes in 2023, Strongly Upgrades Growth and Inflation Outlook
The Fed has turned more hawkish at the June meeting. Besides significant upgrades in the GDP growth and inflation forecasts, the median dot plots now project two rate hikes in 2023, compared with no rate hike until 2024. At the...
RBA Minutes Reveal Members Discussed Three Options to Extend QE
The RBA minutes for the June meeting indicated that the member turned more optimistic about economic recovery. Yet, they remained concerned about soft inflation and wage growth. Accommodative monetary policy would stay in place for the years ahead. at the...
FOMC Preview – Too Early to for Tapering while Surge in Inflation is More Imminent
We do not expect the Fed talk about tapering at this week’s meeting. Policymakers would likely hint more about it at the Jackson Hole symposium in August while a formal announcement would be made at the September FOMC meeting. Rather,...
ECB Upgrades GDP Growth and Inflation Forecasts, Refrains from Talking about Taper
The ECB meeting contains little surprise. On economic developments, despite the notion that recent rise in inflation has been driven by temporary factors, the staff upgraded headline inflation projections sharply for this year and 2022. All monetary policy measures stay...
BOC Drew Attention to Rise in Core Inflation
BOC remained positive about the economic outlook despite recent softer data. The members viewed that weakness in the job market was temporary. Meanwhile, they were more attentive to the rise in core inflation. We believe the plan of QE tapering...
ECB Preview – Extending Current Pace of PEPP Purchases for 3 More Months
The focus of this week’s ECB meeting is the outlook of PEPP purchases in the second half of the year. Although the Eurozone’s economy has improved, while the vaccination progress has accelerated, since the last meeting, we expect policymakers to...
BOC Preview – Policymakers to Keep Upbeat Tone Despite Softening Growth
We expect the BOC to maintain its relatively hawkish outlook at this week’s meeting. Although economic data released since April have softened slightly, strong oil prices and the positive vaccination progress should allow the members to stay optimistic about the...
RBA Affirmed that Adjustments to YCC and QE would be Announced in July
As expected, the RBA left all monetary policy measures unchanged in June. Policymakers maintained a dovish tone, suggesting no rate hike at least until 2024. They also affirmed that some adjustments to the monetary policy would be made in July....