Bank of Thailand cuts policy rate by 25 bps, GDP growth likely to come in much weaker in Q2

May 20, 2020 15:02 pm UTC| Commentary Central Banks

The Bank of Thailand lowered its policy rate by 25 basis points to 0.50 percent, as was expected. The decision was not unanimous, with three of the seven members voting for a hold. The central banks assessment of growth...

Bank Indonesia keeps monetary policy on hold, likely to cut rate in June

May 19, 2020 14:53 pm UTC| Commentary Central Banks

Bank Indonesia kept its monetary policy on hold today. However, it clearly cited that the door for future rate cuts remains open in the midst of low inflation and subdued economic activity. Todays decision was contrary to...

FxWirePro: Quick Run Through On G10 Central Bank’s Negative Rate, Spot/Rates Differential Correlation

May 15, 2020 14:07 pm UTC| Research & Analysis Central Banks Insights & Views

The US Aprilretail saleshas disappointed a day of important releases. The US data (retail sales -16.4%, industrial production -11.2%, Empire Index -48.5%) might fuel global economic concerns on the markets again. Even if...

FxWirePro: A Bird’s Eye-View On RBA QE Program And AUD Risk-Reversals - Hedging & Trading Setup

May 15, 2020 11:14 am UTC| Research & Analysis Central Banks Insights & Views

Markets would be observing the effectiveness of the RBAs QE program and yield target. A fair level for 3yr swap rates would be around 0.40%, but pandemic-related volatility will result in a wide range, say 0.25%-0.50%. The...

FxWirePro: Spotlight On Banxico MPS – Upholds USD/MXN Call Ratio Spreads

May 14, 2020 14:08 pm UTC| Research & Analysis Central Banks Insights & Views

Tonight the Mexican central bank (Banxico) is likely to cut its key interest rate by another 50 bps. Inflation fell to 2.2% in April, below the central banks inflation target. With regard to the economy, which has slid...

Norwegian Macros Provides Breathing Space To Norges - Delta Loop Vanilla Triangle Package For NOK

May 13, 2020 14:47 pm UTC| Research & Analysis Central Banks Insights & Views

Inflation was not much of an issue in Norway anyway over the past few years, so that Norges Bank was able to hike its key rate quite strongly over the past two years until it lowered it back to 0% again as a result of the...

FxWirePro: Kiwis Affirms Bearish Potential, Bid 3m NZD Skews & Deploy Suitable Hedging Strategies On RBNZ Hints Of Negative Rates

May 13, 2020 08:58 am UTC| Research & Analysis Central Banks Insights & Views

Overnight, theRBNZleft rates at 0.25%, but increased its QE programme, also indicating that negative rates will become an option in the future. We recommended short NZD in our portfolio vs a basket of AUD and USD as...