Reserve Bank governor calls for hard talk about budget repair

Aug 10, 2016 16:07 pm UTC| Insights & Views Central Banks

Outgoing Reserve Bank Governor Glenn Stevens has delivered a strong warning about the need to face up to the issue of repairing the budget. Stevens, who leaves his post next month, said that we are kidding ourselves if...

Chart of the Day Series

Chart of the Day: Racing to the Bottom

Aug 10, 2016 16:00 pm UTC| Commentary Central Banks

Gilt yields acceleratedtheir pace towards the bottom after the Bank of England (BoE) fell short of their purchase target by52 million. It seems scarcity of the bonds could be a major hindrance for the...

RBNZ needs to judge by its mandate and act

Aug 10, 2016 14:02 pm UTC| Commentary Central Banks

Today Reserve Bank of New Zealand (RBNZ) will announce its monetary policy around 21:00 GMT. Over the past year or so, RBNZ has reduced rates from 3.5 percent to 2.25 percent, which is an all-time low, however, the bank is...

Renminbi Series

Yuan responds to major FX counterparts since PBoC’s currency mechanism, eased deflation gives extra edge but investment still at snail’s pace

Aug 10, 2016 13:03 pm UTC| Central Banks Insights & Views

PBoCs interventions to depreciate CNY seems to be successful as the Chinese central bank (PBoC) continues to weaken its currency via the fixing, the fixing rates are generally in line with what the fixing model suggests so...

FX Hedging Strategy Series

FxWirePro: Kiwis OTC market hedging operations bolster 1w IVs – “3-way straddles versus call” to hedge NZD/CAD restrained range

Aug 10, 2016 12:49 pm UTC| Central Banks Research & Analysis

Please be noted that the ATM IVs of 1D and 1W expiries of NZDCAD are spiking at sky rocketed pace, 21.36% and, 12.57% respectively. This heaped on noise in NZDCAD OTC operations are owing to todays RBNZ monetary policy,...

Currency War Series

Bank of Mexico likely to keep overnight rate unchanged on Thursday

Aug 10, 2016 11:56 am UTC| Commentary Central Banks

The Bank of Mexico is likely to stand pat during its board meeting on Thursday, said Societe Generale in a research note. The central bank, during its meeting in June had tightened the policy more than expected due to...

RBNZ likely to slash cash rate to new record low of 2 pct

Aug 10, 2016 11:38 am UTC| Commentary Central Banks

The Reserve Bank of New Zealand is expected to slash the central banks Official Cash Rate (OCR) by 25 basis points to new record low of 2.00 percent at its monetary policy meeting scheduled to be held on August 11...