Central banks news

RBNZ Preview – Can RBNZ Maintain Neutral Stance amidst Deteriorating Outlook?

RBNZ is expected to leave the cash rate at 1.75% in March. However, as both domestic and global economic slowdown has intensified since the February meeting, we doubt if the central bank could maintain the guidance that next rate change ...
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BOE Left Policy Unchanged. Next Move Depends on Brexit Outcome

BOE voted unanimously to leave the Bank rate unchanged at 0.75%, and the asset purchase program at 435B pound, in March. Dataflow during the inter-meeting period was mixed, while the Brexit outlook has become even less certain. The members indicated ...
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SNB Downgraded Inflation Forecast for Switzerland, Pledged to Curb Franc’s Strength

SNB left target range for the three-month Libor unchanged at between -1.25% and -0.25%, and maintained a dovish tone. Apart from pledging to intervene the “highly valued” Swiss franc, the central bank downgraded its inflation forecasts. However, this appears to ...
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Fed Turns Even More Dovish in March – Downgrading Economic Outlook, Pausing Rate Hike Cycle, Ending Balance Sheet Reduction

The Fed has turned more dovish than previously expected. Besides downgrading the economic assessments at the policy statement, the members now expect no change in interest rate this year, followed by one rate hike in 2020. They also revised lower ...
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BOE Preview – Staying Cautious Despite Temporary Bounce in Economic Data. Brexit Uncertainty Remains

BOE would leave the Bank rate at 0.75% in March. Despite the bounce in the January data, the members would still remain cautious as global economic slowdown remains a key theme of this year. Meanwhile, the members would maintain a ...
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FOMC Preview: Fed to Maintain Dovish Tone and Announce Plan to End Balance Sheet Reduction

At the upcoming FOMC meeting, the members would vote to leave the Fed funds rate target at 2.25-2.5%. We expect reinforcement of the dovish message conveyed in January. The focus is on the plan to complete the reduction of its ...
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ECB Announces new TLTROs, Markedly Downgrades Growth and Inflation Forecasts

ECB left the main refi rate, the marginal lending rate and the deposit rate unchanged at 0.00%, 0.25% and -0.40%, respectively. However, much change was made in the economic assessment and the forward guidance, as a result of “moderation in ...
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BOC’s Dovish Shift Widened Yield Spread, Sending CAD Lower

BOC left the policy rate unchanged at 1.75%. What caused the market dramatic market movement was its dovish turn – stripping off the forward guidance that the next move would be a rate hike. The abrupt turn in just two ...
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ECB Preview – Downgrades in Forecasts, Changes in Forward Guidance and Hints on New Lending

More dovish messages from ECB seem inevitable at the upcoming meeting. Clouded by Brexit uncertainty, trade conflicts with the US and global economic slowdown, economic developments since the January meeting turned out weaker than expected. We expect ECB to revise ...
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BOC Preview – Risk on Growth is to the Downside

BOC would leave the policy rate unchanged at 1.75% at this week’s meeting. Since the last meeting, economic data released pointed to slowdown in Canada’s growth momentum. Although Governor Stephen Poloz has recently affirmed at the central bank should still ...
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FOMC Minutes – Balance Sheet Reduction Likely Ends This Year

In the minutes for the January FOMC meeting, the members elaborated the rationale for their dovish shift. While affirming solid growth and the resilient employment market, the members focused on the softening inflation and were concerned about the “muted” price ...
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NZD Jumped although RBNZ Postponed Timing of Rate Hike (At Least Not Expecting a Cut)

Kiwi rallied although RBNZ left the OCR unchanged at 1.75% as anticipated. The central bank did turn slightly more dovish than in November but the market had expected more. The central bank indicated that “the tailwinds to growth have eased” ...
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