Central banks news

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 ...
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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 ...
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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 ...
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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 ...
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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 ...
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Hawkish Carney Signals Overheating Economy Could Accelerate BOE Rate Hikes

As widely anticipated, BOE voted unanimously to keep all monetary policies unchanged in November. The Bank rate stays unchanged at 0.75%. Meanwhile, purchases of gilts and corporate bonds remain at 435B pound and 10B pound, respectively. The central bank sent ...
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ECB Reveals No Details about Reinvestment. December in Focus

ECB left it policy rates and the asset purchase program unchanged. The members remained confident over the economic outlook but acknowledges some risks, including protectionism and financial market volatility, that could derail the recovery path. As we had anticipated, ECB ...
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BOC Review – Hiking Policy Rate to 1.75% with Hawkish Bias

The market was thrilled by BOC’s hawkish comments accompanying the widely-anticipated +25 bps rate hike. With the uncertainty of future trade relationship with the US reduced and economic growth on track, the members judged that it is prudent to move ...
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ECB Likely More Cautious amid Soft Core Inflation and Italy. Reinvestment Details to be Revealed in December

We expect ECB to emphasize downside risk to growth in this week’s meeting on October 25. That woudl be a slight shift from the more hawkish stance at the last meeting six weeks ago. With the path of QE announced ...
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BOC Preview – Rate Hike Fully Priced but Future Decision Still Data- Dependent

The market has fully priced in that BOC would raise its policy rate by +25 bps to 1.75% this week. With trade uncertainty eased and the employment market staying strong, the focus is on whether policymakers would consider accelerating the ...
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Fed’s September Minutes Explained the Rationale of Removing Forward Guidance, Showed More Concerns about USD Strength

The FOMC minutes for the September meeting contained little news regarding the rationale of the 25 bps rate hike last month, as well as the future path of monetary policy normalization. Yet, there are some points worth nothing. First, the ...
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RBA Minutes – Content with Weak AUD but More Concerned about Credit Conditions

The RBA minutes for the October meeting reinforced its cautious stance on the monetary policy. With the cash rate unchanged at 1.5% for 24 consecutive months, the members have seen no urgency to make adjustment. While affirming the next move ...
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