When will BOE hikes start pricing in?
Jan 13, 2016 08:50 am UTC| Commentary Central Banks
Bank of England (BOE) was largely expected to follow FED in hiking rates, it is still expected to do so however there is a difference now. Initially it was expected to do so, due to its aggressive hawkish tone, now its...
Growth in Emerging Market likely to be weaker on China’s volatility
Jan 13, 2016 06:24 am UTC| Commentary Central Banks
Chinas equity markets and currency stabilised today with the help of Peoples Bank of Chinas Yuan intervention. The dispersion around the expected growth of China that is tilted on the downside is the continued cause of...
Banxico chases Fed policy despite unfavourable domestic condition
Jan 12, 2016 22:11 pm UTC| Commentary Central Banks
Banxico hiked the interest rate by 25bp just after the Federal Reserve hiked the rate in December. While looking at the current domestic condition in Mexico, hiking the interest rate is not the appropriate step but Banxico...
Markets await for ECB minutes for signs
Jan 12, 2016 16:25 pm UTC| Commentary Central Banks
ECBs December meeting minutes are scheduled to be released on 14th Jan and markets will be looking for signs of readiness from the central bank to do more if needed. Markets are quite optimistic in this respect. Minutes...
China inspired volatility to continue in 2016
Jan 12, 2016 16:07 pm UTC| Commentary Economy Central Banks
Today is off to a good start in the markets as Chinas currency and equity markets stabilize abetted by Chinas Central Bank Yuan intervention. A continued source of volatility is the dispersion around Chinas expected growth...
Softer wages and inflation point to a dovish BoE
Jan 12, 2016 15:48 pm UTC| Commentary Central Banks
BOE recently pushed back hike call to November 2016 from May 2016. Despite continued strong jobs gains, wage data have softened. Along with downward growth revisions and Brexit uncertainties, the BoE now has plenty of...
Strategic divergence between BoE and Fed builds
Jan 12, 2016 15:04 pm UTC| Commentary Central Banks
Central banks can have two responses to a tightening economy, they could either hike earlier and more gradually, or later and not quite so gradually. The former was BoEs likely approach six months ago, but as we stand...