ECB underpins risk assets while pushing yields and EUR lower

Oct 23, 2015 17:00 pm UTC| Commentary Central Banks

The ECB surprised by being much more dovish than we expected yesterday and more or less pre-announcing easing in December. We now look for a deposit cut from the ECB of 10bp on top of an extension of the QE programme...

China delivers monetary easing and financial reform in one step

Oct 23, 2015 16:10 pm UTC| Commentary Central Banks

China delivered another dual cut today to support the struggling economy, 25bp to the interest rates and 50bp to the reserve ratio. As a historical move, the deposit rate ceiling was removed, making interest rates fully...

FOMC Preview-Data dependent Decemberists

Oct 23, 2015 14:32 pm UTC| Commentary Central Banks

The FOMC meets onOctober 27-28, but is not expected to announce a rate hike. The FOMC is likely to prefer to wait until December to make a decision whether to go ahead with a 2015 liftoff. Since there will not be an update...

PBoC cuts policy rates, lowers RRR ratio

Oct 23, 2015 11:44 am UTC| Commentary Central Banks

The Peoples Bank of China has cut its interest rates again and lowered the reserve requirement ratio in an effort to boost the ailing economy. The Chinese central bank reduced its benchmark one-year lending rate by...

Currency War Series

Outcome at ECB Dec meeting likely to be a combination of increase in QE and deposit rate cut

Oct 23, 2015 10:07 am UTC| Insights & Views Central Banks

ECB Governing Council meeting on Thursday was a currency war of words and inaction, where President Draghi has once again demonstrated his ability to bring forward the benefits of ECB activism. Although the ECB Governing...

Currency War Series

G10 reacts to ECB

Oct 23, 2015 07:27 am UTC| Commentary Central Banks

Yesterday, ECB President Mario Draghi prepared the markets for an extension of the ECBs quantitative easing. The FX market was also impacted by the fact that Draghi seems to regard the exchange rate channel as the only way...

Riksbank likely to lower repo rate by 10bp in December

Oct 23, 2015 06:17 am UTC| Commentary Central Banks

In the past couple of years Sweden GDP growth has been driven by domestic sectors thriving on the back of a long-standing property market boom and strong migration inflows. Although with some signs of improvement, the...