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...

ECB cutting the deposit rate further only likely in a much worse scenario

Oct 16, 2015 06:39 am UTC| Commentary Central Banks

With headwinds for the euro area coming mainly from external demand, one option for the ECB would be to push for a weaker euro. While the trade elasticityis not what it used to be, a view shared by the ECBs Governing...

RBA rates to remain on hold through 2015 and 2016

Oct 16, 2015 06:23 am UTC| Commentary Central Banks

History has showed us that banks tend to move close in time, but in differing amounts, when operating out of cycle with the Reserve Bank of Australia. This reflects the common nature of the funding and regulatory shocks...

PBoC's RRR cuts likely in Q4 2015

Oct 16, 2015 05:20 am UTC| Commentary Central Banks

Despite a rebound in new loans, the weak growth and PPI deflation still point to the need for an interest rate cut. The tepid PMIs and deteriorating imports point to a further weakening in growth in September. PBoCs one...

RBA likely to tighten financial conditions further

Oct 16, 2015 03:20 am UTC| Commentary Central Banks

Markets are on alert for an unexpected near term rate cut from the RBA in response to Westpacs decision to raise the variable mortgage rate by 20 basis points. Markets are asking the question as to whether the RBA will...

Mixed signals on the likely timing of ECB easing

Oct 15, 2015 23:49 pm UTC| Commentary Central Banks

Given the increasing market expectations of easing, the key event in Europe next week will be the ECB meeting on Thursday. The ECB is expected to provide more accommodation before year-end - ie, either next week or at the...

ECB cutting the deposit rate further only likely in a much worse scenario

Oct 15, 2015 22:45 pm UTC| Commentary Central Banks

With headwinds for the euro area coming mainly from external demand, one option for the ECB would be to push for a weaker euro. A view shared by the ECBs Governing Council in its latest Accounts, it would require a major...