
Lower inflation expectations could trigger central bank actions
Feb 22, 2016 11:50 am UTC| Insights & Views Central Banks
Long-term inflation expectations in both the US and the euro area have trended lower for a long time and at 1.5% are clearly below inflation targets (2% for the US and below but close to 2% for the euro area). While Fed...

Will BOK intervene to curb KRW volatility?
Feb 19, 2016 16:03 pm UTC| Commentary Central Banks
The South Korean Won fell 5.3% against the US dollar year-to-date, emerging as the worst performer among Asian currencies. Geopolitical tension triggered capital outflows from the economy. Global funds have pulled $2.8bn...
CHF value justifies further SNB action?
Feb 19, 2016 14:41 pm UTC| Commentary Central Banks
Despite the turmoil in the global equity markets, the Swiss Franc has remained on a weakening trend since the start of the year. The temporary strength seen in early February on volatility and Fed re-pricing is unlikely to...
It is too late for Banxico to stop peso’s decline via rate hike
Feb 19, 2016 07:19 am UTC| Commentary Central Banks
The Bank of Mexico unexpectedly raised its overnight rate to 3.75% yesterday in a bid to support its weakening currency. The timing of the rate rise was a surprise to markets. The inflation situation and state of the...

Strong reaction to Riksbank’s rate cut decision unlikely to deter ECB from easing policy in March
Feb 18, 2016 07:40 am UTC| Commentary Central Banks
The adverse response to Swedens Riksbanks decision last week to further cut policy rate below zero from -0.35% to -0.50% indicates investors worries regarding the impact of negative interest rates on the profitability of...
The factors causing BoC's easing essential
Feb 17, 2016 12:27 pm UTC| Insights & Views Central Banks
USD/CAD trimmed yesterdays gains to trade at 1.3843, the pairs lowest since February 5th, during early European session, still down 0.12%. But the Canadian dollar weakened after a meeting between oil ministers from Saudi...
BoK holds interest rate, likely to lower in March
Feb 16, 2016 05:37 am UTC| Commentary Central Banks
The Bank of Korea kept the policy rate unchanged at 1.5% in February, on par with expectations of economists polled by Bloomberg. The central bank expanded its special loans facility to KRW29tn in order to stop the drop in...