ECB’s menu of instruments can be used to surprise markets

Nov 03, 2015 05:10 am UTC| Commentary Central Banks

The stance at the ECB meeting in October was surprisingly dovish, particularly as Draghi opened the door for further deposit rate cuts. Previously the message had been that the ECB had reached the lower bound on the...

The ebb and flow of Fed hike expectations

Nov 03, 2015 02:44 am UTC| Commentary Central Banks

Over the past two weeks, market expectations of Fed normalization have rebounded somewhat. Much of this has got to do with the market interpreting the October FOMC outcome to be more hawkish than anticipated. Sensitivity...

Lower interest rates may not necessarily boost loan growth in Indonesia

Nov 03, 2015 02:27 am UTC| Commentary Central Banks

CPI inflation eased to 6.3% (YoY) in October and may fall further towards the year-end, given the high base effects from 4Q14. Note that monthly inflation is negative for the second consecutive month. Bank Indonesia (BI)...

AUD vigilant against RBA’s stance turning dovish

Nov 03, 2015 02:12 am UTC| Commentary Central Banks

The Australian dollar (AUD) will be paying close attention to the Reserve Bank of Australia (RBA) meeting today. With CPI below the official inflation target of 2-3% for the fourth straight quarter in 3Q15, the central...

Further ECB easing likely in December

Nov 02, 2015 07:32 am UTC| Commentary Central Banks

In an interview published Saturday by the Italian paper Il Sole 24 Ore, ECB President Draghi said the ECB would take all actions necessary if they are convinced that the medium term inflation objective is at risk. At...

CBR to review its key rates in December meeting

Nov 02, 2015 07:13 am UTC| Commentary Central Banks

After the Bank of Russia Board of Directors decided to maintain the key rate at 11% in September, the CBR remained in wait-and-see mode. A still volatile rouble and the corresponding high inflation risks weigh on the CBR....

Banxico may to keep monetary policy unchanged

Nov 02, 2015 06:19 am UTC| Commentary Central Banks

USD/MXN is poised to trade in tandem with the rest of the EM block and commodity prices, as no substantial changes are expected in the inflation report, which will be released next Wednesday. It is believed that Banxico...