Dovish ECB to keep Danish central bank on hold

Oct 22, 2015 15:37 pm UTC| Commentary Central Banks

The European Central Bank (ECB) today signalled a clear willingness to ease monetary policy at its next meeting in December. Therefore, economists now expect it to cut its deposit rate by 10bp to minus 0.30% and keep the...

Attention now turns to the ECB

Oct 22, 2015 00:15 am UTC| Commentary Central Banks

Very few expect ECB to act today, most see a decision coming in December or January. But markets are highly sensitive to hints and Draghi is bound to be pressed on it by journalists. Some argue that QE is worsening the...

Bank of Canada kept rates on hold as widely expected

Oct 21, 2015 23:30 pm UTC| Commentary Central Banks

The BoC statement had a dovish slant (with the output gap now not expected to close until mid-2017) although it also showed no signs of wanting to cut rates further. In the press conference, Poloz went out of his way to...

Brazil Copom: Convergence of inflation pushed forward

Oct 21, 2015 23:18 pm UTC| Commentary Central Banks

The Copom decided this evening to keep the Selic interest rate at 14.25%, unanimously, given the macroeconomic outlook, inflation perspectives, and the current balance of risks. There are two differences in the...

Bank of Canada left its policy rate on hold at 0.5%

Oct 21, 2015 20:30 pm UTC| Commentary Central Banks

The Bank of Canada decided to hold its overnight lending rate steady today at 0.5%, as widely expected. Many were expecting the Bank to sound slightly more upbeat (or at least less downbeat) on the outlook, and that was...

Central banks set the direction in 2016

Oct 21, 2015 18:02 pm UTC| Commentary Central Banks

Global central banks continue to set the direction for global fixed income markets. The big unknown is still if, and when, the Fed will initiate its long-awaited hiking cycle after the Fed funds rate has been at 0.25%...

Canadian interest rates have bottomed and housing has peaked

Oct 21, 2015 17:34 pm UTC| Commentary Central Banks

It is no surprise to anyone that the Bank of Canada maintained its target overnight rate at 1/2 percent today, judging that the underlying trend in inflation continues to be about 1.5 to 1.7 percent. Even before the...