BoE FPC could likely decide on date for British banks' counter-cyclical buffer

Mar 10, 2016 16:03 pm UTC| Commentary Central Banks Economy

BoEs Financial Policy Committee in its Dec meeting agreed that the amount of extra capital British banks should set aside to protect them from future economic downturns should be 1 percent of their risk-weighted assets,...

China Crisis Series

Deflation in the industry sector and weak demand warrant an accommodative monetary policy from the PBoC

Mar 10, 2016 15:27 pm UTC| Commentary Central Banks Economy

Chinas Feb inflation accelerated to a six-month high in February as seasonal distortions caused food prices to spike. Data released on Wednesday showed that Chinas CPI inflation unexpectedly rose to 2.3% y/y in February,...

Czech Central Bank expects return of inflation to target to take longer than earlier imagined

Mar 10, 2016 15:03 pm UTC| Commentary Central Banks

Czech Statistical Office released inflation data on Wednesday which showed that February Czech inflation subsided, both at headline and core levels. Headline CPI was slightly higher at 0.1% m/m vs. 0.6% in January; the...

RBNZ's Wheeler planted seeds for more interest rate cuts

Mar 10, 2016 14:33 pm UTC| Commentary Central Banks

As recently as 3rd Feb RBNZ governor Graeme Wheeler delivered a much acclaimed speech which was generally interpreted to mean that there would be no further rate cuts in the near future. Wheeler had said If concerns deepen...

Deflation race between Swiss franc and Euro leads SNB's rate stance and EUR/CHF path

Mar 10, 2016 13:51 pm UTC| Insights & Views Central Banks

The long-term path for EUR/CHF will be determined by who sees inflation first: Switzerland or the Euro area. Although, the CPI in Switzerland increased 0.2% in February of 2016 over the previous month. But Swiss franc...

Bank of Russia likely to keep key rate on hold in 2016 on elevated inflation risks, vulnerable ruble

Mar 10, 2016 13:03 pm UTC| Commentary Central Banks

The Bank of Russia is expected to keep its key rate on hold at 11% on 18 March, after it lowered the rate by 600bps in 2015. The authorities would like the central bank to further ease policy due to weak domestic demand...

ECB fires bazooka defying expectations

Mar 10, 2016 13:01 pm UTC| Commentary Central Banks

It seems we were conservative in our estimates, while European Central Bank wasnt in their actions. Actions from ECB Main refinance rates were cut by 0.05% to zero, so its basically free money for banks and...