BoK to remain on hold for the rest of the year

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

BoK is expected to remain on hold for the rest of the year. It is believed that the market might have gone ahead of itself in expecting rate cuts for the following reasons: Won is much weaker now against the USD and...

Asian central banks to issue policy updates just before the Fed

Sep 10, 2015 22:26 pm UTC| Commentary Central Banks

In addition to potential Fed effects, China macro risk will be the dominant influence upon Asian markets with potential spillover to the global market tone. Mondays updates for retail sales and industrial production will...

EUR close to equilibrium but mind the ECB

Sep 10, 2015 21:33 pm UTC| Commentary Central Banks

Surprisingly, EUR is close to its equilibrium level on a trade weighted basis, and EUR/USD is also close to fair value of 1.16. Indeed the equilibrium estimate for EUR/USD at 1.16 is below the long-term average level of...

Hike or no hike, do not expect a dovish FOMC

Sep 10, 2015 20:59 pm UTC| Commentary Central Banks

The long-awaited September FOMC meeting is finally upon us. The Fed is expected deliver a rate hike but package it in a dovish message. The dots are likely to show only one rate increase this year, signalling that the...

Copom meeting minutes: Better forecasts, deteriorating balance of risks

Sep 10, 2015 16:52 pm UTC| Commentary Central Banks

The Copom meeting minutes released earlier today show that the 2016 inflation forecast was reduced. That happened in the reference scenario, in which the exchange rate was kept flat at (from 3.25 previously) and the Selic...

Key highlights from BOE monetary policy and minutes

Sep 10, 2015 11:47 am UTC| Insights & Views Central Banks

Bank of Englands monetary policy committee (MPC) chose to keep monetary policy steady for 6 years and 7 months with interest rates at record low 0.5%. Last time policy rate was changed dates back in February 2009, when...

No immediate need for SNB to intervene

Sep 10, 2015 11:40 am UTC| Insights & Views Central Banks

SNB convenes on 17 September to announce the quarterly monetary policy assessment and is widely expected to keep the key policy rates unchanged at -0.75%. Although the international environment has become more uncertain,...