Checking on FED rate hike probabilities

Dec 11, 2015 06:13 am UTC| Commentary Central Banks

US Federal Reserve will be meeting on December 15th-16th, to decide on whether to hike rates or not. Market pricing of rate hike has somewhat softened after reaching as high as 84%. However hike expectations over next year...

Currency War Series

BoE may hike bank rates in Q2 2016

Dec 11, 2015 05:49 am UTC| Commentary Central Banks

The MPC left the bank rate unchanged at 0.50% and stocks of purchased assets at GBP375bn. Ian McCafferty, member of MPC voted in favor of increasing the Bank Rate by 25bp immediately, hence, the vote was 1-8 in favor of...

Currency War Series

ECB's move marks an end of the easing?

Dec 11, 2015 05:35 am UTC| Commentary Central Banks

The European Central Bank delivered a 10 bp rate cut in its monetary policy meeting in December, along with amenu of easing, which was disappointment to the markets. This move from the ECB marked the end of easing,...

A ‘hockey stick’ hiking cycle likely from Fed over next two years

Dec 11, 2015 05:19 am UTC| Commentary Central Banks

US Federal Reserve is likely to start monetary policy tightening in its upcoming meeting in December 2015, and therefore the central bank will have continued market attention in next year as well, as market would be...

Buybacks and acquisitions to support U.S. equities in 2016

Dec 11, 2015 05:18 am UTC| Commentary Central Banks

Since US Federal Reserve reduced interest rates to zero level and purchased assets, worth $4 trillion, US corporations have taken up strategies of buy backs, higher dividends and debt fuelled mergers and acquisition to...

Currency War Series

SNB on hold as expected

Dec 10, 2015 19:32 pm UTC| Commentary Central Banks

The Swiss National Bank (SNB) left policy rates unchanged, no surprise. It expects a weaker CHF over time, something that is also needed to support growth and to bring inflation closer to target. More easing from the ECB...

BoE data depended rather than Fed-dependent

Dec 10, 2015 18:39 pm UTC| Commentary Central Banks

As expected the MPC members again voted 8-1 for keeping the rates unchanged and unanimously to maintain the stock of purchased assets at the 9 December MPC meeting. This was the fifth time in row that the MPC member Ian...