Central banks news

RBNZ Turns Dovish, Downgrading Growth and CPI Forecasts

RBNZ left the OCR unchanged at 1.75% in May. The message delivered by the central bank came in slightly more dovish than expected, sending NZDUSD to a fresh 5-month low. In his first meeting in the capacity of the RBNZ ...

BoE Could be More Dovish than “Hawkish Hold”

BOE is almost certain to keep the Bank rate unchanged at 0.5% in the May meeting. Weakness in PMI data released last week aggravated concerns that recent the moderation in economic activities might persist. Doubts have arisen that whether the ...

FOMC More Hawkish on Inflation, June Rate Hike a Done Deal

As widely anticipated FOMC left the Fed funds rate target at 1.5-1.75% in May. The accompanying statement also came in largely in line with our expectations – shrugging off moderation in first quarter growth and getting more confident in the ...

RBA More Upbeat on Growth, Likely on Hold for 2018

Extending the streak for a 19th month, RBA left the cash rate unchanged at 1.5% in May. Benign inflation and recent slowdown in employment growth are allowing policymakers to keep the monetary policy accommodative. The accompanying statement was largely unchanged ...

FOMC Preview: Focuses on Inflation and Shrugs Off Temporary Disruption on Growth

There have been both positive and negative data released since the March FOMC meeting. We expect policymakers to view slowdown in GDP growth as driven by temporary factors which should not affect the monetary policy outlook. Meanwhile, the central bank ...

ECB Refrained from Hinting on Policy Outlook

In line with our expectations, ECB largely judged the recent slowdown in economic data as driven by temporary factors and moderation after periods of strong growth. The members maintained the view that risks to growth were “broadly balanced” and remained ...

ECB Preview: Caution over Recent Slowdown Won’t Affect QE Schedule

Despite expectations that the ECB would only announce adjustments on QE and interest rate in June the earliest, the upcoming meeting is not a non-event. Since the March meeting, Eurozone’s economic data have surprised to the downside. It would be ...

BOC Revised Lower Growth Forecast for 2018, Sent a Mixed Message

BoC has sent a mixed message in yesterday’s statement. Although the next rate adjustment remains a hike, the timing remains data-dependent and hinged on a number of uncertainties, including NAFTA negotiations and geopolitical tensions, something critical to Canada due to ...

FOMC Minutes: Fiscal Stimulus During Full Employment Facilitates Inflation to Reach +2%

The FOMC minutes for the March meeting reinforced the members’ confidence over the economic growth outlook and that inflation would return to the +2% target in the medium-term. The confidence was mainly driven by the tax reform plan passed late ...

RBA Aware of Recent Rise in Yields

The April RBA meeting contained little surprise. Policymakers left the cash rate unchanged at 1.5% and made few changes in the policy statement. The central bank remained upbeat on growth and employment. Yet, it remained wary of the slow growth ...

BOE Voted 7-2 to Leave Bank Rate Unchanged at 0.50%

BOE voted 7-2 to leave the Bank rate at 0.50%. The members voted unanimously to leave to asset purchase program unchanged at 435B pound. The members were generally positive over the economic outlook, noting that “recent data releases are broadly ...

UK And EU Reached Transition Deal, Erasing Key Uncertainty Of BOE’s Rate Hike Path

Despite initial rally following the announcement of a Brexit transition deal, British pound has retraced much of its gains. Both UK and EU officials have hailed the agreement. While UK’s Brexit negotiator Davis David noted that the deal contains ‘a ...

RBA Minutes Reiterated The Impacts Of Low Wage Growth On Inflation

Aussie remains under pressure although the RBA minutes contained little surprise. The minutes signaled that policymakers were encouraged by recent economic growth. However, subdued wage growth and elevated household debt have suggested that policymakers would keep the powder dry. Meanwhile, ...

SNB Warned Of Franc Appreciation Against US Dollar, Kept Commitment To Intervene

As widely anticipated, the SNB kept the sight deposit rate unchanged at -0.75%, while the target range for the three-month Libor stayed at between –1.25% and –0.25%. Again, the SNB maintained the commitment to intervene the FX market when needed, ...

ECB Surprisingly Removed Easing Bias, Draghi Downplayed The Implication On Future Policy

Surprising to most market participants, ECB dropped the easing bias in the forward guidance. While this had initially sent the euro slightly higher, it reversed as President Mario Draghi reinforced that the act was ‘backward looking’ and would not affect ...

BOC Left Rates On Hold, More Concerned About US Trade Policy

As widely anticipated, BOC left the policy rate unchanged at 1.25% in March. The accompanying statement was more cautious than the previous one, over the trade outlook. Policymakers suggested that ‘trade policy developments are an important and growing source of ...

RBA Left Cash Rate Unchanged At 1.5% As Property Markets Cooled

As widely anticipated, RBA left the policy rate unchanged at 1.5% in March. A cooling property market signals that further rate hike is less urgent. On top of the central bank’s agenda has returned to boosting inflation and employment. In ...

Hawkish Powell Raises Hopes For Four Rate Hikes This Year

While mainly maintaining the FOMC’s stance, the new Fed Chair Jerome Powell’s Congressional testimony before the House Finance Services Committee was interpreted as a hawkish one. Heightened speculations for three, or more, rate hikes this year were reflected in higher ...

(FED) Chairman Jerome H. Powell – Semiannual Monetary Policy Report to the Congress

Chairman Hensarling, Ranking Member Waters, and members of the Committee, I am pleased to present the Federal Reserve's semiannual Monetary Policy Report to the Congress.On the occasion of my first appearance before this Committee as Chairman of the Federal Reserve, ...

BOE Sent Hawkish Signal, Rate Hike Might Come As Early As In May

The BOE left the Bank Rate unchanged at 0.5% and the asset purchase program unchanged at 435B pound. The members voted unanimously (9-0) for the decision. What caught the market attention most is the comment that the“monetary policy would need ...