BOJ Holds Rates at 1% as Inflation Outlook Eases, October Rate Hike Still Possible 
Japan Services Producer Prices Rise 3.2% in June, Supporting BOJ Rate Hike Expectations 
BOJ Seen Holding Rates at 1% While Keeping Inflation Risk Warning 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
Brazil Cuts Selic Rate to 14% as Inflation Eases but Risks Persist 
ECB Expected to Hold Rates as Middle East Tensions Keep September Hike in Focus 
Japan PM Sanae Takaichi Unveils Growth Plan as BOJ Independence Concerns Lift Bond Yields 
Singapore Central Bank’s Exchange Rate Policy Explained: Why MAS Uses the S$NEER Instead of Interest Rates 
FxWirePro’s previous dashboard was a success as it was able to successfully predict not only the rate hike in March but a dissent from Minneapolis Fed President Neel Kashkari. We are building our next dashboard focusing on the June FOMC meeting. We prepare the dashboard by reviewing comments from the voting members of this year’s FOMC. We have chosen June as a target as the market is predicting the next hike to be in June. Currently, the market is predicting two mare rate hikes in 2017; one in June and the other one in December.
Since our last update, there were crucial commentaries coming from the New York Fed President William Dudley, who is a permanent voting member of the FOMC. Speaking with Bloomberg Television, Mr. Dudley said that a couple of more hikes in 2017 seem reasonable. He went further to add that the central bank might also begin shrinking its $4.5 trillion balance sheet later this year or in 2018.
With the above update, our June dashboard looks like below,
- Doves: Neel Kashkari
- Hawks: Charles Evans, Patrick Harker, William Dudley, Stanley Fisher and Robert Kaplan.
- Unknown: Janet Yellen, and Lael Brainard
Pls. note that Daniel Tarullo has resigned and the position is yet to be filled. He voted at the March meeting.
