Currency War Series

CBR meeting preview – rate cut could be postponed again

Jan 28, 2016 18:55 pm UTC| Commentary Central Banks

The CBR will meet on Friday 29 January. The key rate cut could once again be postponed because of the volatile RUB and corresponding inflationary risks. Since the beginning of January, the Russian currency has lost ~8%...

RBNZ relying on currency depreciation to support the economy

Jan 28, 2016 15:33 pm UTC| Commentary Central Banks

New Zealand central bank (RBNZ) left its key rate unchanged as expected at yesterdays policy meet. The central bank seemed notably more concerned about developments in China, on the global financial markets and above all...

FOMC keeps door open to a March hike, market reaction muted

Jan 28, 2016 15:02 pm UTC| Commentary Central Banks

FOMC formally kept the door open to a March hike but did not communicate anything explicitly at this meeting. It was notable that the Fed was no longer willing to describe the risks to the outlook as balanced. A lot can...

BoJ under pressure as retail sales continue to decline

Jan 28, 2016 09:42 am UTC| Commentary Central Banks Economy

Japans December retail sales dropped more than expected, suggesting slow economic growth in the fourth quarter due to sluggish household spending. While the markets expect further monetary easing from the BoJ, the downbeat...

Renminbi Series

PBoC strengthens Yuan for fifth consecutive day

Jan 28, 2016 09:20 am UTC| Commentary Central Banks

Peoples Bank of China (PBoC) strengthened Yuan for fifth consecutive day today via its fix, most probably in an attempt to keep it stable against Dollar and against basket of currencies. Yuans movement just few weeks back,...

Fed Hike Aftermath Series

US Fed likely to hold funds rate target in March

Jan 28, 2016 06:15 am UTC| Commentary Central Banks

The US Fed maintained the Fed funds rate target at 0.25-0.50, on par with expectations. Nevertheless, there were many changes to the central banks statement that indicate that the Fed might keep the rates on hold in March....

RBNZ maintains benchmark rate at 2.5%, keeps door open for additional easing

Jan 28, 2016 05:25 am UTC| Commentary Central Banks

The Reserve Bank of New Zealand has maintained its Official Cast Rate (OCR) at 2.5%, on par with expectations, after lowering the rate by 25bp in December. However, the central bank took a more dovish angle, opening the...