The FOMC minutes for the October meeting revealed that most members judged that the monetary easing was enough to support growth. However, they continued to see downside to the economic outlook.
In October, the members voted to cut the Fed...
RBA’s minutes for the November meeting sent a more dovish tone than expected. At the Statement of Monetary Policy, the members noted that “the Board was mindful that rates were already very low and that each further cut brings...
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...
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...
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....
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...
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...
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...
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....
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...
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...
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...
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...
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...
BOE voted 9-0 to leave the Bank rate unchanged at 0.75%. It also maintained the asset purchase program at 435B pound and corporate purchase at 10B pound. BOE also made detailed discussion on the problems stemmed from Brexit uncertainty.
The...
SNB left the policy rate unchanged at -0.75%. It reiterated the commitment to “intervene in the foreign exchange market as necessary, while taking the overall currency situation into consideration”. Additionally, the central bank adjusted the interest charged on banks’...
Fed lowered the policy rate by -25 bps to 1.75-2.00%, although market expectations of a rate cut diminished markedly ahead of the meeting. The decision was not unanimous. Yet, it revealed a more divided Fed. The updated median dot...
Another rate cut, by -25 bps, is a done deal this week, although the market has trimmed its expectations to 66% from 92% a week ago. This would take Fed funds rate's target range to 1.75-2%. The focus of...
ECB has announced a new package of stimulus measure as inflation weakens. At the same time, the central bank revised lower both GDP growth and inflation outlooks for coming years. EURUSD initially plunged to as low as 1.0927 before...
We expect ECB to deliver a easing package at this week’s meeting. Economic developments since the last meeting have remained steady. However, growth is limited and risk is skewed to the downside. The latest economic projections will show downgrades...