US Fed's hike anticipations weigh on gold prices

Nov 27, 2015 05:24 am UTC| Commentary Central Banks

There is a high possibility of US Federal Reserve hiking its near zero interest rates in December, almost after a decade. These anticipations have increased the dollar strength and yields as well. But there was pressure...

Implications of two-tier deposit rates for the ECB

Nov 27, 2015 05:03 am UTC| Commentary Central Banks

Around EUR640 billion is being deposited overnight at ECB currently, of which around EUR110bn covers minimum RR, remunerated at MRO rate, i.e. 5 bp, which leaves EUR 530 billion in excess, subjecting to ECB deposit rate,...

The two-tier deposit rate system and ECB

Nov 27, 2015 04:02 am UTC| Commentary Central Banks

ECBs main motivation behind its two-tier deposit rate system is to reduce the banking system costs. Cutting the deposit rate further implies high costs to banking systems, as long as banks introduce negative deposit rates...

Renminbi Series

China allows overseas' central banks to enter its FX market

Nov 26, 2015 08:52 am UTC| Commentary Central Banks

PBoC says, China allows an initial group of overseas central banks and other institutions to enter its inter-bank foreign exchange market HKMA, RBA, the World Bank Trust Funds and seven institutions have finished...

Currency War Series

RBA will consider further rate cut, given AUD continues current recovery

Nov 26, 2015 08:43 am UTC| Commentary Central Banks

RBAs next meeting after the one in next week, will not take place till February. Till then the central bank will meet for the last time on Tuesday, in which it will leave the rate unchanged and publish a positive...

Currency War Series

ECB's mission accomplished?

Nov 26, 2015 08:34 am UTC| Commentary Central Banks

The European Central Bank is happy with the performance of Euro. Trade-weighted Euro indicates that it is approaching the spring levels again. It is crucial that this trend continues. President Mario Draghi confirmed in...

A long weekend for FOMC

Nov 26, 2015 08:24 am UTC| Commentary Central Banks

In US, the Federal Reserve has a long weekend until 1st December, which includes the roasted turkey. The December meeting is most awaited as the market widely expects for a rate hike, first time in almost a...