RBI Holds Repo Rate at 5.25% as Inflation Risks and Global Uncertainty Persist 
BOJ Expected to Hold Rates Steady While Signaling More Hikes Ahead 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
Japan PM Sanae Takaichi Unveils Growth Plan as BOJ Independence Concerns Lift Bond Yields 
Singapore Central Bank’s Exchange Rate Policy Explained: Why MAS Uses the S$NEER Instead of Interest Rates 
China Holds Loan Prime Rates Steady for 14th Month as Economic Recovery Remains Uneven 
Minneapolis Fed President, who is a voting member in this year’s FOMC stand out among the policymakers who have been calling for faster rate hikes in 2017. Some of the well-known doves of FOMC shifted their camps in recent weeks but during an interview with the Reuters, Mr. Kashkari indicated that he would maintain his dovish outlook with regard to interest rates.
Mr. Kashkari believes that the US labor market has more room to run and he remains cautiously optimistic of the recent trend where in the past 18 months, more workers have returned to the workforce. He said that while wages are rising and hope that the trend would continue, he believes it has yet not reached alarming levels. He said that the Fed aims to let the economy run as fast as it can as long as the inflation is low.
With regard to fiscal policies, Mr. Kashkari said that he hasn’t factored them in his forecasts yet due to lack of clarity.
These comments from Mr. Kashkari doesn’t change our FOMC dashboard for March meeting, which as of now looks like below,
Doves – Neel Kashkari.
Hawks – Janet Yellen, Charles Evans, Patrick Harker, Stanley Fischer, William Dudley, Lael Brainard, and Robert Kaplan
Unknown – Jerome Powell
Pls. note that one of the dovish members, Daniel Tarrullo has resigned and the position is yet to be filled.
