Fed Hike Aftermath Series

Fed policy normalization journey beginning

Dec 18, 2015 00:13 am UTC| Commentary Central Banks

The Feds decision to raise its target interest rate by 25 basis points in December was a function of both the strength in the labour market and the anticipation that inflation will slowly move back to target. However,...

Fed Hike Aftermath Series

Fed rate hike demonstrates investor's confidence in economy

Dec 17, 2015 15:40 pm UTC| Commentary Central Banks

The Federal Open Market Committee decided to raise interest rates by 25 basis points yesterday signaling the beginning of a gradual rate tightening policy. Markets across the world reacted positively to the news, U.S....

BOJ monetary policy preview

Dec 17, 2015 12:08 pm UTC| Commentary Central Banks

Bank of Japan (BOJ) will announce its monetary policy decisions tomorrow sometime in early Asian hours, sometime around 3:00 GMT. Speech by Governor Kuroda is expected to be scheduled at 5:00 GMT. Current monetary...

Fed Hike Aftermath Series

Pace of Fed tightening in 2016 will be faster than markets price-in

Dec 17, 2015 12:04 pm UTC| Insights & Views Central Banks

In what was a unanimous decision overnight, the US Federal Reserve raised its target range for the fed funds rate by 25 bps to 0.25-0.50%. The Feds rate hike was the first in nearly a decade, which puts an end to a...

Currency War Series

Norges Bank unlikely to cut rate at next meeting

Dec 17, 2015 11:43 am UTC| Commentary Central Banks

The Norges Bank hold the bank rate unchanged at 0.75% as expected. However, some experts argued that the Bank may cut rate as fall in oil prices affected the economy. The oil price fell more than what the central bank...

Central Bank of Chile likely to stand pat on sluggish October activity

Dec 17, 2015 09:59 am UTC| Commentary Central Banks

Chile central bank CBCs overnight rate is currently at 3.25%. The central bank is expected to rise its over night rate slightly by 25 bp by the market consensus, while some market participants expect it to be on hold in...

Banxico likely to stand pat until Q1 16

Dec 17, 2015 09:41 am UTC| Commentary Central Banks

Mexico central bank Banxicos over night rate is at 3.0% currently. Today the central bank has it monetary policy meeting, in which the bank is expected to rise its rate by 25bp by the market consensus, while some market...