A close watch needed on widening TED spread

Aug 09, 2016 07:13 am UTC| Commentary Central Banks

The cost of unsecured U.S. Dollar funding is creeping up and it has been creeping up since 2014, however, recent days have seen arelatively sharp jump in that cost not seen in years. The spread between the risk-free rates,...

In his last policy decision, RBI governor Rajan keeps rates steady

Aug 09, 2016 06:13 am UTC| Commentary Economy Central Banks

The Reserve Bank of India Governor Raghuram Rajan delivered no surprises in its last monetary policy meeting while keeping the key policy rate unchanged at 6.50 percent. He had cut repo rateby 25 basis points in...

FxWirePro: A what if analysis on NZD/USD hedging framework with “Sure and Fire option strips”

Aug 08, 2016 12:36 pm UTC| Research & Analysis Insights & Views Central Banks

NZD OTC market functions are likely to intensify contemplating upcoming RBNZ OCR cut in its monetary policy by 25 bps to keep it at 2.00%. As a result of this speculation in the FX market, the New Zealand dollar moved...

FxWirePro: Glimpse over why looming RBNZ cut seems most likely after China flashes, Kiwi dollar to confront bearish pressure again

Aug 08, 2016 11:45 am UTC| Central Banks

The RBNZ made it clear last month that it will be returning to the easing table, and like the consensus, we expect a 25bp OCR cut to 2.0% this week an all-time low. This is fully priced by the market. As a result of...

BSP unlikely to raise interest rate on account of low inflation

Aug 08, 2016 10:32 am UTC| Commentary Central Banks

The central bank of Philippines (BSP) is unlikely to adopt a tighter monetary policy in its meeting scheduled to be held on Aug 11, as long as inflation remains below the central banks target range, although gross domestic...

Fed’s Powell increasingly worried on secular stagnation

Aug 08, 2016 08:21 am UTC| Commentary Economy Central Banks

Former treasury secretary Larry Summers, who has been warning along with other economists that the U.S. economy may be stuck in astate called secular stagnation may have found a worrying fellow at the U.S. Federal Reserve....

Imprudent to solely blame Brexit for BOE cuts; UK fundamentals to divulge intricacies of British business

Aug 08, 2016 07:36 am UTC| Insights & Views Central Banks

The divergence in theUK and US monetary policy expectations drove GBP/USD lower over the past week. Having briefly touched above 1.3350, the pair tumbled below 1.31 on Friday following the US data. The Bank of Englands...