Vanishing FED hike headache for ECB, BOJ

Oct 16, 2015 13:29 pm UTC| Insights & Views Central Banks

Delay in FED hike and sharp drop in expectations, which now is forecasting first rate hike close to middle of next year is creating headache for European Central Bank (ECB) and Bank of Japan (BOJ) policymakers. Latest...

Low inflations in EMEA mirrors the central banks' policy stances

Oct 16, 2015 11:51 am UTC| Commentary Central Banks

The low inflation environment in the region mirrors the accommodative stance of local central banks. In Poland, the first rate hike could take place in Q3 2016, in our view. Nevertheless, there is a risk that the new...

RBNZ’s last OCR easing factored-in, NZ businesses demand further easing

Oct 16, 2015 07:56 am UTC| Insights & Views Central Banks

Some further easing from RBNZ in the OCR seems likely at this stage, adding this will depend on the emerging flow of economic data. So lets have a glance on how has it reflected since the last rate cut and how does that...

New loans picked up on PBoC’s monetary easing

Oct 16, 2015 07:21 am UTC| Commentary Central Banks

Chinas financial institutions extended trn new loans in September, up from CNY809bn in the prior month and higher than market expectations. Notably, this is the highest loan extension in September in record, suggesting...

Czech's CB chief hints at possible extension of FX cap

Oct 16, 2015 07:16 am UTC| Commentary Central Banks

EUR-CZK has been drifting lower in recent days again, falling below 27.10 this week; this is a reflection of the general EM rally; CZK has not outperformed PLN or HUF. EUR-CZK is already close to its official 27.00 target,...

FED’s Mester in favor of rate hike in 2015

Oct 16, 2015 07:12 am UTC| Insights & Views Central Banks

Recent weakness in economic data along with financial market turmoil has severely dented rate hike hope this year from FED. This week two key policymakers at FED, Brainard and Tarullo publicly raised the possibility of a...

Long term, the ECB could be forced to consider its target and new asset classes

Oct 16, 2015 06:47 am UTC| Commentary Central Banks

As discussed in our last preview, in a scenario of prolonged undershooting of the inflation, the ECB will need to be open to the idea of taking a longer time to meet the target or reformulating the target. Moreover, in...