ECB likely to expand asset purchases and add corporate bonds
Oct 01, 2015 03:41 am UTC| Commentary Central Banks
Euro area inflation returned to negative territory in September (-0.1% yoy). Following persistent weakness in energy prices, the headline inflation is expected to average 0.1% in 2015 and 1.0% in 2016 compared to our...
A monetary easing bias remains in place in New Zealand
Sep 30, 2015 23:27 pm UTC| Commentary Central Banks
The Reserve Bank of New Zealand (RBNZ) reduced the benchmark overnight cash rate by 25 basis points (bps) in September following two equivalent cuts in June and July, taking the key rate to 2.75%. Inflationary pressures...
BCB likely to go for a 50bp rate cut in 2016
Sep 30, 2015 03:40 am UTC| Commentary Central Banks
There has been no substantial change in the macro economy since earlier this month. However, the sharp deterioration in financial conditions, amid mounting domestic political and legislative concerns and the poor...
Reserve Bank of India surprises with a 50bps cut
Sep 30, 2015 02:15 am UTC| Commentary Central Banks
The Reserve Bank of India (RBI) surprisedwith a 50bps cut in the Repo rate to 6.75% on Tuesday vs expectations of a 25bps reduction. This bunched-up move was likely driven by three reasons: a) comfort with the evolving...
More QE not as simple as it sounds for ECB
Sep 29, 2015 12:31 pm UTC| Commentary Central Banks
In relative terms, the ECBs current quantitative easing programme appears modest. Whilst the BoJs total asset purchases equate to 64% of GDP, and the Feds 25%, current asset purchases in the Eurozone amount to around 11%...
Weak pass-through of RBI policy rate cut remains a concern
Sep 29, 2015 04:52 am UTC| Commentary Central Banks
The pass-through of RBI policy rate cuts to bank lending rates remains fairly weak. So far, the average pass-through has been barely 30bp in response to 75bp of rate cuts by the RBI. Recently, HDFC Bank announced an...
Chinese Reminbi regime change, US fiscal standoff
Sep 29, 2015 03:42 am UTC| Commentary Central Banks
There are two specific political/policy uncertainties which could serve as another deterrent for the Fed, even if the data evolves as expected. In China, the uncertainty around the RMB is an important risk factor. PBoC is...
South Africa’s plan to move away from coal: 8 steps to make it succeed
Germany lowers voting age to 16 for the European elections
IceCube researchers detect a rare type of energetic neutrino sent from powerful astronomical objects