What low interest rates have done for the world – and the likely effects of a rise

Dec 14, 2015 16:36 pm UTC| Insights & Views Central Banks

With the US Federal Reserve seemingly set on raising interest rates, its time to take stock of what low rates have done for the world. And what the prospects are when this era of low interest rates comes to an...

Fed tightening cycles are widely seen as bad news for EM Markets

Dec 14, 2015 16:28 pm UTC| Commentary Central Banks

Higher interest rates from the Fed need not be bad news for EM. After all, the Fed initiates a tightening cycle because it views the US economy strong enough to cope. Moreover, the Fed has been warming up for this...

Fed Liftoff Series

FED liftoff series – expected hike path

Dec 14, 2015 16:15 pm UTC| Commentary Central Banks

The event the world has been awaiting, preparing and speculating for is finally approaching - meeting by US Federal Reserve, in which US interest rates will finally rise from their zero bound. Market is now pricing 72%...

Fed Liftoff Series

FED liftoff series – good or bad for equities?

Dec 14, 2015 16:08 pm UTC| Commentary Central Banks

The event the world has been awaiting, preparing and speculating for is finally approaching - meeting by US Federal Reserve, in which US interest rates will finally rise from their zero bound. Market is now pricing 72%...

Currency War Series

BOE hike path is underestimated, according to deputy governor

Dec 14, 2015 13:12 pm UTC| Commentary Central Banks

Market might be underestimating Bank of Englands (BOE) policymakers zeal to hike interest rates and market might be too dovish in their expectations of the path of hike, according BOE deputy governor, Minouche Shafik, at...

Dollar’s longs reflecting desperate gains upon Yellen’s move

Dec 14, 2015 12:42 pm UTC| Insights & Views Central Banks

The large majority of price sensitive market participants still seem to be betting on USD longs. However, these only have a reasonable risk reward profile medium term. I doubt that nobody will square their USD-long...

Currency War Series

Low CEE inflation supports accommodative monetary policy

Dec 14, 2015 11:44 am UTC| Commentary Central Banks

On 11 December 2015, the Bank of Russia decided to keep the key rate at 11.00 percent per annum, in recognition of growing inflation risks, but the risks of economic cooling remain. The bank estimates annual pace of...