Decline in headline Shunto revision rate raises likelihood for additional easing from BoJ at April meeting

Mar 21, 2016 14:03 pm UTC| Commentary Central Banks

On 18 March, the Japanese Trade Union Confederation (Rengo) published first round results of the FY16 Shunto (spring wage negotiations) which saw a moderation in the size of base pay hikes. According to Rengo, the weighted...

Currency War Series

Further easing from BoJ likely at April meeting

Mar 21, 2016 12:27 pm UTC| Commentary Central Banks

The Bank of Japan last week left its major monetary policies unchanged but downgraded its view of the economy, opening the door to further action in the months ahead. Japans consumer price inflation remains stuck far below...

Fed Hike Aftermath Series

FED Hike Aftermath Series: Hike expectations advance from November to September

Mar 21, 2016 10:47 am UTC| Commentary Central Banks

With every improvement in investors sentiment and advance in equity markets, rate hike expectations are growing stronger. After last rate hike in December by FED of 25 basis points, market expectations have moved a lot...

Global Reflation Series

Global reflation series: TIPS in demand

Mar 21, 2016 10:15 am UTC| Commentary Economy Central Banks

Yet another sign that some investors have started pricing reflation. We think FED is likely to reach its inflation target and this time around a bit more. Last week, 10 year treasury inflation protected securities returned...

Currency War Series

Egypt Devaluation Positive, Economic Challenges Remain 

Mar 21, 2016 09:36 am UTC| Commentary Economy Central Banks

Decisions by the Central Bank of Egypt (CBE) last week, including a devaluation of the Egyptian pound, are broadly credit positive but the country faces a difficult year of slower growth, high inflation and large financing...

Taiwan’s central bank to lower key interest rates to support economic growth

Mar 21, 2016 08:02 am UTC| Commentary Central Banks

(Edited to properly credit DBS Bank Group Research) On Thursday, Taiwans central bank, CBC, will review its monetary policy, where it is likely to lower its rates by 12.5bps, the third such move since September 2015,...

Bank of Thailand likely to keep rates on hold for rest of 2016

Mar 21, 2016 07:00 am UTC| Commentary Central Banks

Domestic demand in Thailand continues to be weak. Private consumption is weak, while recent data is not encouraging. Thailands monthly private consumption index has also lost the momentum that was seen in 2015. In the...