Currency War Series

Currency War Series

Further quantitative easing measures unlikely from BoJ

Jan 13, 2016 10:40 am UTC| Commentary Central Banks

Bank of Japans monetary authorities are seen confident to achieve the price stability target of 2% Y/Y facilitated by current asset purchase program that seeks to increase the monetary base by 80 trillion annually....

Currency War Series

Indonesia’s central bank likely to cut rate this month

Jan 13, 2016 09:50 am UTC| Commentary Central Banks

Indonesias December CPI dropped to 3.35% YoY on a sluggish growth, last seen in December 2009. As the economy decided to increase the domestic retail prices of diesel and gasoline in December 2014 with a motive of...

Currency War Series

US Fed, BoE Seen on Rate Hiking Path

Jan 13, 2016 08:59 am UTC| Commentary Central Banks

Although recent concerns have boosted the risk of additional easing of monetary policy than expected, there has to be more evidence of the instability in the financial market either for a longer period of time or for spill...

Currency War Series

Banxico chases Fed policy despite unfavourable domestic condition

Jan 12, 2016 22:11 pm UTC| Commentary Central Banks

Banxico hiked the interest rate by 25bp just after the Federal Reserve hiked the rate in December. While looking at the current domestic condition in Mexico, hiking the interest rate is not the appropriate step but Banxico...

Currency War Series

Softer wages and inflation point to a dovish BoE

Jan 12, 2016 15:48 pm UTC| Commentary Central Banks

BOE recently pushed back hike call to November 2016 from May 2016. Despite continued strong jobs gains, wage data have softened. Along with downward growth revisions and Brexit uncertainties, the BoE now has plenty of...

Currency War Series

Strategic divergence between BoE and Fed builds

Jan 12, 2016 15:04 pm UTC| Commentary Central Banks

Central banks can have two responses to a tightening economy, they could either hike earlier and more gradually, or later and not quite so gradually. The former was BoEs likely approach six months ago, but as we stand...

Currency War Series

Riksbank in a tough spot with interest rates at extremely low levels

Jan 12, 2016 11:52 am UTC| Commentary Central Banks

As the Swedish economy is seen growing, the Riksbank has revised up GDP forecasts to around 3.5% for 2016. The refugee influx gives a fiscal boost to the economy in the coming years, as the number of people employed in...