Currency War Series

Mario Draghi may push Euro lower today

Feb 01, 2016 06:42 am UTC| Commentary Central Banks

European Central Bank (ECB) president Mario Draghi, sounded more confident in banks January meeting that in December, when he disappointed market expectations and was seen fumbling literally during the course of press...

Currency War Series

RBI unlikely to lower rates on 2 Feb

Feb 01, 2016 05:48 am UTC| Commentary Central Banks

The Reserve Bank of India is unlikely to lower rates further in 2016 after cutting the rate by 50bp in September 2015. The efficacy of rate cuts is expected to depend on the rate of transmission to the lending rate. Till...

Currency War Series

Nikkei strong on BOJ’s policy decision

Feb 01, 2016 03:35 am UTC| Commentary Central Banks

The Bank of Japans decision on last Friday to adopt a negative interest rate policy came as huge surprise to global markets. Today benchmark Nikkei 225 index rallying 1.31% to 17,747.52 points while Tokyos broader Topix...

More complications arise after the introduction of negative rates policy in Japan

Feb 01, 2016 02:46 am UTC| Commentary Central Banks

The Bank of Japan announced last Friday to implement negative interest rates on financial institutions reserves, as a surprising move. In order to mitigate the adverse impact on their earnings, a multiple-tier system will...

Currency War Series

RBI to keep rates on hold this week

Feb 01, 2016 02:28 am UTC| Commentary Central Banks

As markets digest the Bank of Japans surprise policy move on Friday, the Reserve Bank of India is expected to keep rates on hold on 2 February (Tue). The focus will be on how the central bank perceives growth-inflation...

Currency War Series

ECB likely to increase QE by end of Q1 2016

Jan 31, 2016 22:32 pm UTC| Commentary Central Banks

ECB kept its monetary policy unchanged in its December meeting and disappointed the market. After the policy decision in December the probability was only20% for further easing in 2016. But the scenario has changed...

Fed Hike Aftermath Series

Fed to be cautious in tightening policy, to avoid global asset price inflation

Jan 29, 2016 15:06 pm UTC| Commentary Central Banks

The Fed is likely to tighten monetary policy only by as much as markets allow without major turmoil. The Fed will try to avoid any further asset price inflation and ease any bubbles that have already emerged, such as in...