Currency War Series

Softer wages and inflation point to a dovish BoE

Jan 12, 2016 15:48 pm UTC| Commentary Central Banks

BOE recently pushed back hike call to November 2016 from May 2016. Despite continued strong jobs gains, wage data have softened. Along with downward growth revisions and Brexit uncertainties, the BoE now has plenty of...

Currency War Series

Strategic divergence between BoE and Fed builds

Jan 12, 2016 15:04 pm UTC| Commentary Central Banks

Central banks can have two responses to a tightening economy, they could either hike earlier and more gradually, or later and not quite so gradually. The former was BoEs likely approach six months ago, but as we stand...

ECB unlikely to ease policies in January meet

Jan 12, 2016 12:20 pm UTC| Commentary Central Banks

After substantial measures taken in 2015 and with the ongoing recovery, no further policy easing is expected from the ECB, however, with Core Inflation around 1% Y/Y, the ECBs further easing cannot be ruled out. The next...

SEK 2016 - What could trigger Riksbank's action?

Jan 12, 2016 12:05 pm UTC| Insights & Views Central Banks

Riksbanks executive board on January 4th came up with the extraordinary move to allow its governor Mr Ingves and his first deputy governor, Kerstin af Jochnick to intervene in foreign exchange markets at any time. This is...

Currency War Series

Riksbank in a tough spot with interest rates at extremely low levels

Jan 12, 2016 11:52 am UTC| Commentary Central Banks

As the Swedish economy is seen growing, the Riksbank has revised up GDP forecasts to around 3.5% for 2016. The refugee influx gives a fiscal boost to the economy in the coming years, as the number of people employed in...

Currency War Series

Change to the Turkish Central Bank’s MPC composition seen in mid 2016

Jan 12, 2016 10:38 am UTC| Commentary Central Banks

The Central Bank of Turkeys willingness to tighten its monetary policies in line with rising market volatility is still questionable, as the CBRTs policy meeting could not raise the markets perception of the CBTs...

Currency War Series

Sweden’s Riksbank’s move towards FX tools shows signs of economic weakness

Jan 12, 2016 09:47 am UTC| Commentary Central Banks

Riksbank is now concentrating on FX because it is worried that the non-FX tools are not much efficient in raising the credit multiplier and are leading funds towards low yield investments resulting in real estate and...