Currency War Series

RBNZ likely to lower OCR further to 2% in 2016 on weaker CPI data

Jan 20, 2016 04:32 am UTC| Commentary Central Banks

New Zealands Consumer Price Index (CPI) dropped by 0.5% in Q4 2015, lower than Westpacs below-market projection of a drop of 0.4%. Meanwhile, the countrys annual inflation rate declined to just 0.1% from 0.4%. The drop in...

Dovish ECB rhetoric likely to weigh on Euro

Jan 19, 2016 15:30 pm UTC| Commentary Central Banks

ECB is widely expected to remain unchanged at its January meeting and press conference (Thursday), but dovish rhetoric is likely to exert downward pressure on the currency. Tightening in financial conditions that has...

China Crisis Series

Capital controls—a less likely option for PBoC

Jan 19, 2016 15:12 pm UTC| Commentary Central Banks

Echoing elevated market volatility, Chinas FX reserves posted their largest single monthly decline in December, supporting sustained capital flight. Given its falling reserves, the PBoC is now seen with limited ability to...

Currency War Series

ECB unlikely to undertake measures on Thursday

Jan 19, 2016 06:12 am UTC| Commentary Central Banks

The ECB is likely to keep a dovish tone but is not expected to take action this week. The central bank President Draghi is expected to argue that the measures undertaken in the past will be successful and will lead to a...

Currency War Series

Bank of England's first rate hike likely in H1 2016

Jan 18, 2016 22:54 pm UTC| Commentary Central Banks

Last week BOE left the monetary policy unchanged, keeping the main rate at 0.5% and the QE amount at 375 billion annually. Only one Monetary Policy Member voted for a rate hike, as was broadly expected. According to the...

Central bank of Turkey unlikely to change its policy rates at January MPC meeting

Jan 18, 2016 11:24 am UTC| Commentary Central Banks

In the January MPC meeting on Tuesday, the Central Bank of Turkey is likely to keep all of its policy rates unchanged. The central bank in the December MPC minutes had suggested simplification steps that could start in...

Currency War Series

BoC's likely overnight rate cut to weigh on Loonie

Jan 18, 2016 09:01 am UTC| Commentary Central Banks

Bank of Canada is likely to lower its overnight rate by 25bp on Wednesday. The price of Western Canadian Select (WCS) has declined by 50% since the central bank published its Monetary Policy Report in October. The fall has...