Currency War Series

RBA to stay put in H1 2016, as inflation expectations soar

Dec 10, 2015 10:54 am UTC| Commentary Central Banks

To add to the headache of Reserve Bank of Australias (RBA) policymakers, who are trying to tame slowdown using loose monetary policy at one hand, facing real estate price hike and deteriorating terms of trade at the other,...

BoK's fiscal policy likely to remain proactive next year

Dec 10, 2015 10:39 am UTC| Commentary Central Banks

BoK left its key policy rate steady at 1.5% today, consistent with the expectations. Korean government grew at 2.7% yoy in third quarter, rising from 2.2% in Q2. The economy accelerated to 1.3%qoq in Q3, against 0.3%...

Czech's central bank's year end inflation projection likely has little chance to materialise

Dec 10, 2015 10:32 am UTC| Commentary

Czech Republics November CPI dropped by 0.4% mom. The year on year rate dropped to 0.1%, a full 0.5 pp below the central banks projection for the month. While this moderation is led by sharp food and energy price...

RBNZ will again act, if kiwi appreciates further

Dec 10, 2015 10:06 am UTC| Commentary Central Banks

RBNZ once again cut its key rate by 25bp to bring it to 2.5%, as indicated in the last rate meeting. This is primarily because of the NZD which rose again in the month of August. The central bank still wants to a weak...

Fed may again hike rate in March

Dec 10, 2015 09:35 am UTC| Commentary

The rising wage rate is warning that the inflationary pressure in the economy will be higher in near future. Therefore, contractionary monetary policy is anticipated from the Fed at 16th December meeting. This will be the...

USD bulls get cold feet

Dec 10, 2015 09:35 am UTC| Commentary

With last weeks ECB decision, USD eased notably versus EUR. The likelihood of asset purchase program being increased again almost fell to zero. The reduced 10 bp depo rate cut means nothing to the FX market and hardly...

ECB likely took the pressure off from SNB

Dec 10, 2015 09:25 am UTC| Commentary Central Banks

The Swiss National Bank (SNB) maintains its expansionary monetary policy. The target range for 3-month Libor remains at between -1.25% and -0.25%, and the interest rate on sight deposits with the SNB is kept unchanged at...