Central banks news

ECB Gets Slightly More Hawkish, Revealing that it might Not Use All of PEPP Envelope

The ECB left its powder dry in January. While continuing to warn of the downside risks on the Eurozone and global economy, the central bank delivered a hawkish tweak about operation of the Pandemic Emergency Purchase Program (PEPP). On the ...
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BOJ Downgraded Economic Outlook for FY2020, Inflation to Fare Better During Forecasting Horizon

The January BOJ is non-eventful. Cautioning that risks to the economic outlook is tilted to the downside, the central bank announced to leave all its stimulus measures unchanged. In contrast to speculations, the central bank did not adjust the implicit ...
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ECB Preview – Awaiting More Comments of Strong Euro

While ECB would likely leave its monetary policy measures unchanged this week, the market should focus on several issues: members’ view on recent euro strength, discussions on QE tapering and economic impacts of renewed lockdown. Following the recalibration in December, ...
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BOC Preview – All Eyes on Likelihood of Micro Rate Cut

BOC is widely expected to leave its overnight rate at the effective lower bound of 0.25% in January. The size of asset purchases will also stay unchanged at CAD4B/week. Over the past month, there has been market speculations about the ...
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BOE Stays Put as Deadline of Brexit Talk Approaches

BOE left the Bank rate unchanged at 0.1% and the asset purchase program at 875B pound. The central bank remained cautious about the “unusually uncertain” economic outlook and pledged to take “whatever additional action is necessary” if the outlook for ...
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Fed Pledged to Continue QE Until “Substantial Progress” Seen in Employment and Inflation

The major changes in the December were forward guidance in the asset purchase program (QE) as well as upgrades in economic forecasts. The Fed left the policy rate unchanged at 0-0.25% and asset purchases at US$120B per month. The updated ...
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BOE Preview – Staying Cautious about Brexit Outlook

For QE expansion at the last meeting, we expect the BOE will keep its powder dry this month. BOE should leave the Bank rate unchanged at 0.1%, and the size of asset purchases (QE) at 875 pound. There have been ...
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FOMC Preview – Fed to Update Forward Guidance on QE

At the last meeting of the year, we expect the Fed to be more cautious about the near-term outlook, while more optimistic over the longer-term. The focus of the meeting will be on the adjustment of the forward guidance about ...
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ECB Extends PEPP, APP and TLTROs to At Leaset Until Mid-2022

As promised, the ECB “recalibrated” the existing monetary policy measures at the December meeting. The aim is to ensure that the current level of stimulus remains in presence through to 2020. On the economic projections, the staff revised lower the ...
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BOC Upbeat about Vaccine but Remained Cautious about Slow Global Recovery

As widely anticipated, BOC left all its monetary policy measures unchanged. Policymakers acknowledged the economic recovery since the last meeting. Yet they cautioned about the resurgence in coronavirus cases and the potential impacts on related restrictions on the economic outlook ...
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BOC Preview: Keeping Powder Dry While Reiterating Stimulus will Last For Years

After the adjustment in asset purchases in October, we expect BOC to keep the powder dry this week, at its last meeting in the year. Policymakers will caution about the rising number of coronavirus cases and economic impacts of tighter ...
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ECB Preview – Policy Recalibration to Focus on PEPP and TLTRO

Given the strong hint in the October meeting, the ECB is prone to add monetary easing measures at Thursday’s meeting. We expect to see increase in the size of PEPP and adjustment of TLTRO. As the policy rates have been ...
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