ECB meeting, a currency war of words and inaction

Oct 22, 2015 17:57 pm UTC| Commentary Central Banks

ECB President Draghi was more dovish than expected, resulting in a large drop in the EURUSD. Specifically, the Governing Council re-inserted the possibility of cutting the deposit rate into the ECBs toolbox, which is in...

ECB to cut the deposit rate further

Oct 22, 2015 17:23 pm UTC| Commentary Central Banks

Draghi had a very dovish tone today and surprisingly opened the door for a deposit rate cut. Based on this, economists now expect the ECB to cut the deposit rate by 10bp at the meeting in December, to keep the door open...

Dovish ECB to keep Danish central bank on hold

Oct 22, 2015 15:37 pm UTC| Commentary Central Banks

The European Central Bank (ECB) today signalled a clear willingness to ease monetary policy at its next meeting in December. Therefore, economists now expect it to cut its deposit rate by 10bp to minus 0.30% and keep the...

Attention now turns to the ECB

Oct 22, 2015 00:15 am UTC| Commentary Central Banks

Very few expect ECB to act today, most see a decision coming in December or January. But markets are highly sensitive to hints and Draghi is bound to be pressed on it by journalists. Some argue that QE is worsening the...

Bank of Canada kept rates on hold as widely expected

Oct 21, 2015 23:30 pm UTC| Commentary Central Banks

The BoC statement had a dovish slant (with the output gap now not expected to close until mid-2017) although it also showed no signs of wanting to cut rates further. In the press conference, Poloz went out of his way to...

Brazil Copom: Convergence of inflation pushed forward

Oct 21, 2015 23:18 pm UTC| Commentary Central Banks

The Copom decided this evening to keep the Selic interest rate at 14.25%, unanimously, given the macroeconomic outlook, inflation perspectives, and the current balance of risks. There are two differences in the...

Bank of Canada left its policy rate on hold at 0.5%

Oct 21, 2015 20:30 pm UTC| Commentary Central Banks

The Bank of Canada decided to hold its overnight lending rate steady today at 0.5%, as widely expected. Many were expecting the Bank to sound slightly more upbeat (or at least less downbeat) on the outlook, and that was...