BoK Interest rate decision: No bias towards policy easing

Jan 15, 2016 01:40 am UTC| Commentary Central Banks

Bank of Korea (BOK) held rates steady at 1.50% yesterday, although revising down the outlook forecasts. BOK trimmed the 2016 GDP forecast to 3.0% from 3.2%, acknowledging the downside risks to growth prospects stemming...

Hungary's MNB to continue easing bias policy in 2016

Jan 14, 2016 21:16 pm UTC| Commentary Central Banks

While looking at the current economic condition in Hungary and free fall of Oil prices, further interest rate cut is expected, says MNB economist. As per the forecast, the Hungarian base rate is expected to cut from 1.35%...

Fed Hike Aftermath Series

Timing of future Fed rate hikes gets murkier

Jan 14, 2016 17:04 pm UTC| Commentary Central Banks

Further interest rate hikes by the U.S. Federal Reserve should be gradual or they risk hurting already fragile emerging economies. Specifically, if oil prices remain at current levels or fall even lower, it is doubtful the...

Currency War Series

Banxico unlikely to increase intervention amount at this stage

Jan 14, 2016 16:01 pm UTC| Commentary Central Banks

Banxico, as of today, sells 200mn USDMXN at a minimum price of +1.0% above the previous-day FIX and an additional 200m at +1.5%. The Central Bank is likely to fine-tune its FX interventions, will likely make operational...

Currency War Series

Sharp rise in real interest rates could negate need for additional BCB tightening

Jan 14, 2016 15:23 pm UTC| Commentary Central Banks

The Brazilian real moved back above the 4.00 threshold and stabilised within the 4.00 and 4.07 over the last couple of weeks. Data last week showed that Brazils inflation rate closed 2015 at the highest level in more than...

BCB to resume interest rate hike, Societe Generale's model supports higher Selic rate

Jan 14, 2016 14:48 pm UTC| Commentary Central Banks

Selling pressures in emerging market currencies will likely remain in the near future. The current political chaos will maintain the pressure on Brazils economy and, as a consequence on the real. The BCB has been on the...

Currency War Series

What will RBI respond to – weak inflation or weak Rupee?

Jan 14, 2016 13:30 pm UTC| Commentary Central Banks

Raghuram Rajan took charge of Reserve Bank of India in September, 2013 at a time when Indian economy and Rupee was facing massive turmoil. His arrival, followed by landslide election by reform promising Bhartiya Janata...