BoC likely to begin tightening monetary policy in Q4 2016

Dec 22, 2015 05:08 am UTC| Commentary Central Banks

As the year progresses, a pullback is likely in USD/CAD, on an expected stabilization after rebounce in crude oil prices, better performance in non resource sector. Benefits of a weak CAD are likely to present a boost...

Currency War Series

BoJ tweaks policy as growth firms

Dec 21, 2015 23:54 pm UTC| Commentary Central Banks

The recent data flow from Japan on balance has been encouraging. Reports indicate that business expansion has strengthened and broadened, spanning from the labor market to capex. This weeks BoJ Tankan reinforced this...

Currency War Series

BoE to follow Fed but not in a hurry

Dec 21, 2015 23:18 pm UTC| Commentary Central Banks

The Bank of England is expected to follow the Fed in coming months, launching a rate cycle before midyear. The UK labor market continued to strengthen this week, with a strong gain in jobs and another drop in the...

Currency War Series

Poland's NBP may cut policy rate by 75bps next year

Dec 21, 2015 13:03 pm UTC| Commentary Central Banks

Polands net inflation for November released last week remained at 0.2 percent year on year. The CPI inflation rate is expected to enter negative territory in December. The economy is expected to remain in deflation of...

Currency War Series

BCB likely to hold rate unchanged at next meeting

Dec 21, 2015 12:44 pm UTC| Commentary Central Banks

The Brazilian economy mired in recession further in Q3, as the growth rate contracted by 6.18% in Q3. Being worried for recession, the Brazilian central bank increased rate seven times in last nine month through July....

Fed Hike Aftermath Series

Fed’s focus on inflation after monetary policy, sustenance in USD in short run but EM baskets to gain

Dec 21, 2015 12:09 pm UTC| Insights & Views Central Banks

In long term, we expect dollar continues to be supported versus euro, while it could underperform relative to emerging market currencies especially. With the uncertainty regarding the first hike of the Fed behind us,...

Renminbi Series

Further weakening of CNY in 2016 could prolong easing cycles of other central banks

Dec 21, 2015 11:53 am UTC| Insights & Views Central Banks

Amidst continuing concerns regarding slowing growth and weak price pressures in China, PBoC continues to guide the yuan lower vs. the USD. However, the PBoC will be keen to control the pace of addition falls in the value...