Central banks news

Global Central Banks Rushed to Stimulus Amidst Limited Monetary Policy Tools

As the coronavirus pandemic could very likely lead the world to recession, global central banks have rushed to inject liquidity through rate cuts another other unconventional measures. However, interest rates have already stayed at very low levels before the crisis ...
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RBNZ Announced QE to Tame Tightening Market Conditions

RBNZ announced QE on Monday, following an aggressive emergency rate cut, by -75 bps, to 0.25% last week. The surprising move aims at soothing the credit conditions which have tightened significantly over the past weeks. Besides QE, the central bank ...
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RBA Announced Emergency Rate Cut, Initiated QE

RBA announced an emergency rate cut of -25 bps, sending the cash rate to 0.25%, today. The central bank also announced a QE-style yield curve control plan. It attempts to target the yield for 3-year government bond at 0.25% through ...
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Fed and RBNZ Announce Emergency Cuts, BOJ to Follow?

In a very surprising move, FOMC has implemented another emergency cut, the second time in two weeks, to combat the negative impacts of the coronavirus outbreak. Originating in China, the virus has officially evolved into a pandemic affecting almost 100 ...
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ECB Expected to Announce Stimulus Package Including Deposit Rate Cut

Coronavirus originated from Wuhan, China has become an pandemic affecting about 90 countries and territories in the world. In the Eurozone, the top 3 economies have reported totally 11,800 cases so far, with Italy alone taking up over 9,000 cases ...
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Fed’s Emergency Cut Reveals the Lack of Tools to Deal with Corona-Crisis

The Fed implemented an emergency rate cut of -50 bps on Tuesday, just two weeks ahead of the FOMC meeting scheduled on March 18. The Fed funds rate range now stands at 1-1.5%. While the move is not entirely surprising, ...
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RBA Cut Rate to 0.5%, Being the First Central Bank to Ease Due to Coronavirus

RBA becomes the first central bank to cut interest rate in light of the negative impacts from the coronavirus outbreak. The central bank lowered the cash rate by -25 bps to 0.50% in March, expected to ease further in the ...
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Bets of BOC Rate Cut Increased as Domestic Growth Loses Steam while Coronavirus Gets More Worrying

The market has priced in a 60% chance of a BOC rate cut this week, up from virtually 0% two weeks ago. While moderation in domestic growth has suggested that further easing is likely, the coronavirus outbreak and its impact ...
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RBA to Keep Powder Dry Next Week, Could Push Forward Rate Cut to April

RBA is expected to leave the Bank rate unchanged at 0.75% in March. However, disastrous coronavirus outbreak in China is expected to hurt Australia’s economy, triggering the members to push forward further easing in as soon as April. Indeed, the ...
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Uncontrollable Coronavirus Spread Could Force the Fed to Resume Easing

The FOMC minutes for the January meeting revealed that policymakers remained content about the domestic growth outlook. However, they acknowledged the growing uncertainty emerged from the coronavirus outbreak. This could present significant downside risks to global growth. The situation of ...
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RBA Minutes Reveal that Members Consider Cutting Rates Below 0.75%, Warn of Coronavirus Uncertainty

In contrast to February’s RBA meeting statement, which demonstrated a less dovish outlook, the minutes revealed that the members considered lowering the policy rate further. Yet, they decided to keep the powder dry on concerns over “risks associated with very ...
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RBNZ’s Next Move could be Rate Hike

RBNZ left the OCR unchanged at 1%. Yet, its message came in less dovish than expected. The members were upbeat about the employment situation and inflation. While coronavirus would affect domestic economy, the impact would be short-lived. Policymakers project GDP ...
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