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...

Chart of the Day Series

Chart of the Day: Kiwi hurts

Aug 05, 2016 14:50 pm UTC| Commentary Central Banks

The price of dairy in global auctions has risen more than 25 percent after bottoming in late 2015. The rise has been relatively steeper this year. But since the rise, the price has dropped more than 17 percent in New...

RBA wants currency to weaken; may slash rates if AUD upswings

Aug 05, 2016 12:45 pm UTC| Commentary Central Banks

The Reserve Bank of Australia has taken action in May as well as in August and cut its benchmark rate by 25 basis points each time to a historic low of current 1.5 percent. The central banks move to lower the rate was due...

Aussie strength remains a concern for the RBA

Aug 05, 2016 11:19 am UTC| Insights & Views Central Banks

In reaction to the notable appreciation of AUD since the start of the year, the Reserve Bank of Australia (RBA) has reacted in May and as recently as in August and lowered its key rate by 25bp respectively to a historic...

FX Hedging Strategy Series

FxWirePro: Bidding 3m cable risk reversals to arrest tail risks of Brexit and BOE easing

Aug 05, 2016 10:50 am UTC| Central Banks Research & Analysis Insights & Views

Yesterday saw the BoE deliver comprehensive easing including, a 25bp cut in Base Rate, 60bn in additional gilt purchases, 10bn of corporate bond purchases and introduce a new Term Funding Scheme. The total package exceeded...