BoJ yield curve control: Is this the way out?

Sep 22, 2016 07:44 am UTC| Commentary Central Banks

Yesterday, The Bank of Japan (BoJ) introduced a very complex instrument, qualitative and quantitative easing with yield curve control (QQE-YCC). Many financial market practitioners including the investment bank Goldman...

South Korean bonds gain following U.S. Treasuries

Sep 22, 2016 07:15 am UTC| Commentary

The South Korean government bonds gained Thursday after the United States Federal Reserve downgraded its economic outlook and the Federal Open Market Committee left fed funds rate unchanged in a 0.25-0.50 percent range, in...

USD/CNH likely to face downside risks as China’s FX reserves drop to lowest since 2012

Sep 22, 2016 07:14 am UTC| Commentary Economy

Chinas foreign exchange reserves have dropped to its lowest level since 2012, reflecting that the Peoples Bank of China (PBoC) should have defended USD/CNY at 6.70 last month. Looking ahead, it is expected that the PBoC...

Norges Bank likely to hold fire, recent economic data suggests recovering economy

Sep 22, 2016 06:55 am UTC| Commentary Central Banks Economy

The central bank of Norway is expected to remain on hold at 0.50 percent at its monetary policy meeting scheduled to be held today, as the recent print of a series of economic data suggest that the economy is recovering...

South African rand to continue to face moderate depreciation pressure against US dollar next year

Sep 22, 2016 06:47 am UTC| Commentary

The South African rand continues to be the currency, which would be badly impacted by rate hikes by the U.S. Fed, given its current account deficit of 5 percent of GDP. The sometimes notable depreciation but also the...

FOMC monetary policy September 2016: Assessing future bias

Sep 22, 2016 06:32 am UTC| Commentary Central Banks

Yesterday, FOMC policymakers preferred to keep policy steady and not to go for a hike. This was somewhat expected given the division among policymakers with regard to inflation and the pace of economic growth. Lets...

Mexico’s bi-weekly September inflation likely to have accelerated slightly

Sep 22, 2016 06:23 am UTC| Commentary

Mexican inflation continues to surprise on downside. August inflation report had three important takeaways. Firstly, the entire inflation acceleration in August and in July was because of the increase in...