Chile central bank debating when to tighten policy
Oct 05, 2015 21:34 pm UTC| Commentary Central Banks
The BCCh minutes indicates a hike is coming. The minutes from the September meeting, suggests a split decision: three board members voted to stay on hold while one board member voted for a 25bp rate increase. Clearly, the...
China’s FX reserves likely dropped to $3.5trn
Oct 05, 2015 21:19 pm UTC| Commentary Central Banks
Chinas FX reserves likely dropped by $57bn in September to $3.50trn, compared with a $94bn decline in August. Since there was little change in major currency valuations vs the USD, the estimated decline implies $55bn of FX...
Can weak US data provide sustained support to EM and commodity currencies like during the QE era?
Oct 05, 2015 17:45 pm UTC| Commentary Central Banks
Stocks and EM FX rallied after the worse-than-expected NFP. The market seems to be taking comfort in the likelihood that the slowdown of the US labor market could keep the Fed on hold for even longer. The fact is that...
RBA to stand pat in Oct policy meet, weakness expected in exchange rate
Oct 05, 2015 11:19 am UTC| Insights & Views Central Banks
Australias current cash rate stands at a record low of just 2 percent after the RBA slashed rates by 25 basis points, or 0.25 per cent, in both February and May this year. Market and most analysts believe interest rates...
Policy on hold, but the RBA may tweak its views on the global economy
Oct 04, 2015 21:03 pm UTC| Commentary Central Banks
The RBA (Tuesday) is expected to keep the cash rate unchanged at a record low of 2% given that the Governor recently said he was pretty content with current policy. However, the accompanying press release may be tweaked to...
Further BoJ easing expected in October
Oct 04, 2015 20:52 pm UTC| Commentary Central Banks
Deteriorating growth and weakening inflation outlook in Japan increased the pressure for the BoJ to act early. With regards to specific easing measures, the BoJ is expected to 1) increase the annual pace of monetary base...
BoE on hold but may want to tailor expectations somewhat
Oct 04, 2015 20:34 pm UTC| Commentary Central Banks
The BoE is expected to keep the Bank Rate and asset purchase decision unchanged at its October meeting (Thursday) in line with market expectations. Nonetheless, it is believed that the tone of the MPC from the release of...
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