Currency War Series

Stronger US economy and ECB actions might fuel further risk affinity

Mar 01, 2016 11:58 am UTC| Commentary Central Banks

Stock markets around the globe are showing strong signs of rebound and fading risk aversion, so further actions from ECB next week and this weeks non-farm payroll data could further fuel this trend. SP 500 - We have...

Currency War Series

China Crisis Series

Poor China's PMIs suggests monetary easing from PBoC likely to continue

Mar 01, 2016 10:40 am UTC| Commentary Economy Central Banks

Chinas central bank announced on Monday it would cut banks reserve requirement ratio, allowing banks to set aside fewer deposits which in turn encourages them to lend more. The unexpected move came one day ahead of the...

Currency War Series

RBA policy – assessing the bias

Mar 01, 2016 08:44 am UTC| Commentary Central Banks

Reserve Bank of Australia (RBA), decided to keep policy unchanged and keep interest rate at 2%. Since it was largely expected stay put, Aussie didnt gain much from the decision. Reserve bank of Australia (RBA) after few...

Currency War Series

China’s central bank lowers RRR, likely to further lower rates in H1 2016

Mar 01, 2016 06:49 am UTC| Commentary Central Banks

The People Bank of China recently stated that RRR will be lowered by 50bp effective 1 March 2016. This move was taken by the PBoC just after the G20 meeting and Governor Zhous comment regarding prudent but moderately loose...

Currency War Series

RBA seems to have strengthened easing bias, but keeps cash rate unchanged

Mar 01, 2016 05:54 am UTC| Commentary Central Banks

The Reserve Bank of Australia has decided to keep the cash rate unchanged at 2%, on par with expectations. The central bank had expressed its easing bias in its recent statements saying persistent low inflation may give...

Poor inflation data intensifies pressure on the ECB

Feb 29, 2016 16:38 pm UTC| Commentary Central Banks

Data released earlier today showed euro area headline inflation fell back in February to a one-year low of -0.2% y/y, while core inflation slowed to 0.7% from 1.0%. Februarys drop in euro-zone CPI inflation back into...

Potential credit problem in UK could see some macroprudential controls from BoE FPC

Feb 29, 2016 15:44 pm UTC| Commentary Central Banks

Consumer credit in UK is growing at over 9% 3mth pa, a pace not seen since 2005 and notably faster than the pace immediately before the financial crisis broke. Mortgage borrowing, the much larger component of household...