China Holds Loan Prime Rates Steady for 14th Month as Economic Recovery Remains Uneven 
RBA Signals More Rate Hikes Possible as Australia Battles Stubborn Inflation 
Australia Inflation Cools as Core CPI Misses Forecasts, Easing RBA Rate Hike Pressure 
Gold Shines on Oil Relief: Buy Dips at $4160, Targeting $4305 as Bullish EMAs Dominate 
BOJ Rate Decision in Focus as Sticky Inflation, Weak Yen Shape USD/JPY and Nikkei Outlook 
Meta-backed research finds exposure to ‘untrustworthy’ social media is rare. The fine print is less reassuring 
ECB Expected to Hold Rates as Middle East Tensions Keep September Hike in Focus 
Ukraine’s drone strikes are having an impact on Russia — but Russian leaders remain committed to war 
Same sparkle, different story: how lab-grown diamonds are transforming the market 
SpaceX Earnings Preview: Bernstein Says 4 Key Factors Will Drive Long-Term Valuation 
Fed Holds Interest Rates Steady as Kevin Warsh Says Rising Treasury Yields Tighten Financial Conditions 
Chile Central Bank Holds Interest Rate at 4.5% as Inflation and Global Risks Persist 
US Federal Reserve chair Janet Yellen last night gave speech on inflation dynamics and monetary policy at university of Massachusetts, Amherst. Due to not feeling well over dehydration, madam chair hasn't been able to complete her speech and retired early. She felt better later on.
Nevertheless she was able to provide crucial clues to Federal Reserve's thinking over monetary policies. Below are key extracts -
- According to her, prospects of US economy appear solid as average monthly job gains so far this year stands at 210,000 and overall economy has been expanding modestly faster than its productive potential.
- FED expects further improvement in labor market heading into 2016.
- FED still expects to raise rates some time later this year, though pace of hike would be gradual over next few years.
- Both first rate hike and subsequent hikes will depend on economic developments.
- Some uncertainty still persists as FED is not sure how the headwinds restraining US economy will fade.
- Exports remain significant drag over US economic activity.
- Risk is high that a slowdown in foreign growth might restrain US economy further.
- However these foreign developments as of now unlikely to alter path of monetary policy.
- FED feels there is a risk of abrupt tightening if it choose to wait for too long for inflation to reach closer to 2%.
Dollar has gained significantly since yesterday and more so after Yellen's speech. Dollar indec is currently trading at 96.32, up 0.15% so far today.
