Central banks news

BOC Extends QE to Provincial and Corporate Bonds, while Leaving Rate at Lower Bound

After three cuts, 150 bps in total, in March, BOC left the policy rate unchanged at 0.25% at the April meeting. With the policy rate standing at the lower effective bound, the central bank added further monetary easing by extending ...
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BOC to Stand on Sideline this Week. Unscheduled Policy Announcement Possible in Near Future

Having cut the policy three times and announced QE program in March, BOC will likely keep the powder at the April meeting. Policymakers will explain the rationale of the stimulus measures, reinforcing that the policies are essential to containing the ...
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FOMC Minutes Revealed Rationale for Emergency Cuts and QE Inifinity

As noted in the FOMC minutes for the March emergency meeting, the members agreed that economic situation has “deteriorated sharply” in light of the coronavirus pandemic. They were also in “strong support” of the measures to facilitate the flow of ...
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Aussie Gained as RBA Hinted the Possibility of Easing the Pace of QE

As widely anticipated, RBA left the cash rate unchanged at 0.25% in April. This is following two emergency rate cuts (50 bps in total) a month ago. The central bank pledged to maintain the stimulus measures announced last month for ...
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Manufacturing PMI and Inflation in the Eurozone Reveal that Eurozone is Approaching Recession

Latest indicators for virus-haunted Eurozone’s economic developments suggest that the region is very close to recession. While accelerating QE, ECB refrained from lowering the policy rate March. We expect it would be obliged to do so in April. Meanwhile, coordinated ...
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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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