Fed did its deed, now watch out inflation
Dec 20, 2015 21:50 pm UTC| Commentary Central Banks
The USD is expected to continue to be supported versus G3, while it could underperform relative to emerging market currencies. With the uncertainty regarding the first hike of the Fed behind us, risk premia should decrease...

BoJ surprise and focus for the year-end
Dec 20, 2015 21:19 pm UTC| Commentary Central Banks
The Bank of Japan (BoJ) decided on surprise measures to qualitatively supplement its QQE without further quantitative easing last week. Governor Kuroda at the post-meeting press conference described the decision as a...
Japan government tax revenue estimated at 25-year high in FY2016 - sources
Dec 20, 2015 11:41 am UTC| Central Banks
Japans government is set to estimate tax revenue at a 25-year high of 57.6 trillion yen ($475.25 billion) in fiscal 2016 due to rising corporate revenue, according to Reuters sources. The draft budget for the next fiscal...

Declining oil prices could push for another rate cut by ECB in 2016
Dec 19, 2015 08:40 am UTC| Commentary Central Banks
Brent prices dropped to $35 per barrel, which constitutes a significant downside risk to the ECBs inflation scenario and is likely to refuel talks of further monetary accommodation through, in particular, another cut in...
Why the Fed didn't let HY market problems prevent a hike
Dec 19, 2015 07:59 am UTC| Commentary Central Banks
One of the reasons offered as reason for the Federal Reserve not to hike was the High yield market developments,but it did anyway. It made the right decision in our view. Scotiabank offers several reasons: Much of...
‘Post the first hike’ era begins
Dec 18, 2015 18:45 pm UTC| Commentary Central Banks
In the US, the post the first hike-era is set to begin. As expected, the FOMC and Janet Yellen reiterated that the hiking cycle will be gradual and data dependent. There are many important data releases over the next three...

Bank of Japan fine tunes the QQE programme
Dec 18, 2015 17:53 pm UTC| Commentary Central Banks
As anticipated there were no changes to the QQE programme at the last meeting of the year. However, the BoJ fine-tuned the QQE programme with three changes: to purchase longer maturity bonds, to buy more ETFs that...
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