Monetary policy decision: All eyes on the ECB

Aug 30, 2015 21:08 pm UTC| Commentary Central Banks

The ECB is expected to nod in the direction of further policy easing at this weeks Governing Council meeting (Thursday), with risks skewed toward more forward-leaning guidance and possibly even action. Since the last...

Data to set the mood for BoC meeting

Aug 30, 2015 20:33 pm UTC| Commentary Central Banks

This weeks data releases will probably set the mood for BoCs meeting on September 9. The resilience of the Canadian consumer, together with satisfactory readings for inflation, is in line with the rhetoric of the BoC,...

RBA on hold, but dovish tilt to reflect China risks

Aug 30, 2015 20:25 pm UTC| Commentary Central Banks

The cash rate is likely to be on hold for an extended period, but with the continued risk of a rate cut even as recent commentary from the RBA has taken on a more neutral tone. This risk reflected frustration with both the...

Fed nudged, not knocked over

Aug 28, 2015 16:41 pm UTC| Commentary Central Banks

The Fed is not fond of being cast as the worlds central banker. After all, excessive focus on the global backdrop can make policy sub-optimal from a domestic perspective. However, the other extreme of policy isolationism...

ECB under pressure from falling inflation expectations

Aug 28, 2015 15:33 pm UTC| Commentary Central Banks

The 5Y 5Y forward swap rate of inflation (or 5Y 5Y inflation) has fallen significantly in recent weeks. The 5Y 5Y inflation rate is a financial measure often referred to by the ECB, as the central bank considers it...

ECB Preview: More easing before year-end

Aug 28, 2015 14:39 pm UTC| Commentary Central Banks

The ECB will hold its regular monetary policy meeting next week on Thursday, 3 September. Since the last policy meeting in July, there have been several macroeconomic and financial factors that have reduced the near- and...

Israel keeps its base rate unchanged

Aug 28, 2015 12:44 pm UTC| Commentary Central Banks

Israel kept its 0.10% base rate on hold this week, as expected. The central bank is under pressure to loosen monetary policy conditions with inflation low at -0.3% y/y and recent growth indictors very negative. The main...