Euro strength inconsistent with the comprehensive ECB package, an overreaction, downside to resume
Mar 11, 2016 12:09 pm UTC| Commentary Central Banks
The ECB fired its bazooka yesterday, and undoubtedly a powerful one, yet markets were unimpressed. As expected, the ECB cut its deposit rate by 10 basis points, further into negative territory to -0.4%. The marginal...
South African Reserve Bank likely to proceed with rate hike cycle in 2016
Mar 11, 2016 11:25 am UTC| Commentary Central Banks
The South African Reserve Bank is expected to hike its key rate to 7% as the high CPI inflation outlook continues to pressurize the central bank to go ahead with its rate hike cycle. According to the MPC, the South African...
Mar 11, 2016 09:42 am UTC| Commentary Central Banks
The Danmarks Nationalbank yesterday stated that it kept the interest rates on hold. Hence, the interest rate on certificates of deposit is kept unchanged at -0.65% and the EUR-DKK monetary policy rate spread is narrowed to...
ECB did surprise market but market surprised more
Mar 11, 2016 07:59 am UTC| Commentary Central Banks
It would be fair to say that European Central Bank (ECB) succeeded in surprising the market, with big stimulus package it delivered, so the immediate effect was as intended. Bond yields were dropping, Euro was going down,...
ECB over-delivery fails to impress
Mar 11, 2016 01:55 am UTC| Commentary Central Banks
ECB fired a bazooka yesterday by more-than-expected across-the-board easing, though the markets were not impressed. Instead, the stock markets faltered and the EUR/USD ended higher than before the stimulus was announced....
Is the Bank of England independent when it comes to Brexit?
Mar 10, 2016 23:17 pm UTC| Insights & Views Central Banks
The Bank of England has been attacked by Leave campaigners for articulating what they deem to be pro-government, pro-Remain views about Brexit, when it should supposedly be independent. Governor Mark Carneys comment that...
CBR likely to leave key rate unchanged at March 18th meet
Mar 10, 2016 16:36 pm UTC| Commentary Central Banks
Elevated inflation risks and a vulnerable ruble could force the CBR to stay on the sidelines at March 18th meet. The ruble has gained quite a bit since weakening to a record low of USD/RUB 85.9675 on January 21, and is...
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