Risk on? Interest rates could stay low for decades

Dec 16, 2015 05:26 am UTC| Insights & Views Central Banks Economy

When a central bank lifts interest rate targets by 0.5% it expects households and firms to respond. In a crisis, the official target may fall by 3% in order to shock the economy into a positive response. These movements of...

BoK likely to deliver another 25bp rate cut in Q1 16

Dec 16, 2015 04:09 am UTC| Commentary Central Banks

Marked by slow inventory clearance and production lacking in slow external demand, the underlying trend remains steady. Domestic demand and services were stabilized post MERS outbreak, the still weak exports and private...

Westpac-Melbourne Institute Leading Index growth rate slows

Dec 16, 2015 00:54 am UTC| Commentary Central Banks

The six month annualised deviation from trend growth rate in the Westpac-Melbourne Institute Leading Index, which indicates the likely pace of economic activity three to nine months into the future, decreased from -0.13%...

How will money markets respond to the Fed liftoff ?

Dec 15, 2015 23:27 pm UTC| Commentary Central Banks

Many short-term interest rates have already shifted higher due to expectations for a Fed hike. Indeed, 1- and 3-month bill, discount note, LIBOR, and commercial paper rates have recently moved higher and now trade near...

Nuts and bolts of Fed liftoff

Dec 15, 2015 23:03 pm UTC| Commentary Central Banks

On Wednesday the Federal Reserve is likely to raise interest rates for the first time in nearly a decade. The Fed faces a unique challenge in tightening monetary policy with a $4.5tn balance sheet and nearly $2.5tn in...

Bank of Canada sees the risks to the financial system as elevated, but stable

Dec 15, 2015 21:28 pm UTC| Commentary Central Banks

The Bank of Canada released its Financial Systems Review (FSR) this morning, in which it highlights risks tied to the Canadian economy and financial system. The Bank judges that Canadian economic conditions have firmed in...

Currency War Series

With the Fed rate hike well flagged, "Tone of Conference" will be the key to drive markets

Dec 15, 2015 11:22 am UTC| Insights & Views Central Banks

Markets are nervous heading into the FOMC decision due tomorrow. With the hike in the fed funds rate well flagged, focus is likely to shift from the initial hike to the subsequent path as to be detailed in the statement to...