Central banks news

RBNZ Unanimously Left OCR at 1%. Rate Cuts Next Yet Still Likely

RBNZ left the OCR unchanged at 1% in October. The members acknowledged that inflation stayed below the midpoint of the 2% target and inflation forecasts have declined. Yet, they believe previous monetary easing should lift the price level back to ...
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RBNZ Preview – Market Divided over Another Rate Cut Move This Week

The market remains divided over whether RBNZ would lower the OCR this week. Back in August, the market had fully priced in a rate cut of -25 bps. Yet, the central bank surprised with a -50 bps reduction, sending the ...
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BOE Left Policy Rate at 0.75%. Two Members Voted for Easing

Although the Bank rate stayed unchanged at 0.75% as expected, it is surprising to see two members voted for a rate cut. At the minutes, BOE has left the door open for a rate cut for the first time. British ...
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RBA Left Cash Rate Unchanged at 0.75%, Maintained Dovish Bias as Members Struggle to Bring Jobless Rate Lower

As expected, RBA left the cash rate unchanged at 0.75%. Dovish bias remains as policymakers struggled to bring down the unemployment rate and boost inflation. Economic developments showed “little changed“. The members affirmed that “a gentle turning point appears to ...
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BOE Preview – Maintaining Dovish Stance although No-Deal Brexit Less Likely

The chance of no-deal Brexit appears to have diminished after Article 50 is further extended to January 2020 and the parliament will hold snap elections in December. However, domestic growth has shown signs of moderating and unemployment rate is bottoming ...
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Turning Dovish, BOC Discussed about Insurance Rate Cut for First Time In October

BOC turned dovish in the October meeting, while maintaining the policy rate unchanged at 1.75%. For the first time, the central bank discussed about “insurance” rate cut, citing trade war’s damage to business investment and exports. The announcement sent the ...
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Fed Signals to Pause after a Third Rate Cut

FOMC delivered a hawkish cut at the October meeting. The central bank lowered the Fed funds rate, by -25 bps, to 1.5-1.75%. Yet, the Fed removed the language that it will act to sustain expansion at the forward guidance. This ...
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FOMC Preview – Third Rate Cut on Table. Will Fed Signal A Pause or More to Come?

The market has almost fully priced in a rate cut of -25 bps in the FOMC meeting this week. Some in the market are speculating that the Fed would change the forward guidance. Some expect the central bank to signal ...
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BOC Preview – Policy Rate will Stay Unchanged. But for How Long?

Although the Fed and ECB have resumed monetary easing, BOC is not expected to follow suit. This is also the key reason for the recent strength in Canadian dollar. At the meeting next week, we expect the central bank to ...
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ECB Review – Outgoing Draghi Defended the Need to Easing Package

President Mario Draghi’s last ECB meeting came in without surprise. He sent a cautiously dovish message about Eurozone’s economy and reiterated the importance of the stimulus package announced last month. The new leadership will likely maintain the existing policy stance ...
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ECB Preview – President Draghi’s Last Speech to Remain Dovish as He Leaves a Divided ECB to Largarde

In his last meeting as the president, Mario Draghi is not expected to announce any new measures. Rather, he would be defending the needs of the stimulus package announced in September and urging for a bigger role in fiscal policy ...
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RBA Minutes – Sending Dovish Message by Rebuking Arguments in Favor of Keeping Rates Unchanged

In the minutes for the October meeting, RBA revealed the debate for the -25 bps rate cut. The key reasons for lowering the policy rate to 0.75% are disappointing employment and inflation data, as well as downside risk to global ...
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