RBNZ to cut key rate further on China risks

Sep 09, 2015 07:19 am UTC| Commentary Central Banks

New Zealands most important trade partner is China where economic developments look a lot less encouraging. That means mainly one thing for the RBNZ: it has to bank even further on a weak NZD so as to compensate for weaker...

BoC to remain on hold

Sep 09, 2015 07:09 am UTC| Commentary Central Banks

As a direct neighbour and thus the major trading partner developments in the US are of particular relevance for the Canadian economy and therefore for the Bank of Canadas (BoC) monetary policy. At present this is causing...

ECB to support recovery for long time

Sep 09, 2015 05:49 am UTC| Commentary Central Banks

The ECB started to buy public sector bonds in March this year and intends to do so at least until September 2016. As it is seen, inflation by then will not be close enough to the 2% target and inflation expectations will...

KRW swaps imply an outside chance of another rate cut

Sep 09, 2015 02:39 am UTC| Commentary Central Banks

The market is pricing an outside chance of rate cuts within the next six months as sentiment on the Korean economy sours. The market is more dovish for the Bank of Korea (BoK) to keep the policy rate unchanged at 1.5%...

South Korea's fiscal support remains; monetary easing is over

Sep 09, 2015 02:28 am UTC| Commentary Economy Central Banks

The Korean government will adopt a conservative stance on fiscal policy next year according to its 2016 budget proposal unveiled yesterday. Total budget spending will increase to KRW 386.7trn, only KRW 2trn more than this...

Is the dollar priced for Fed hikes?

Sep 09, 2015 00:28 am UTC| Commentary Central Banks

The US dollar (USD) has strengthened over 15% on a trade-weighted basis since endJune 2014. But, a decomposition of USD moves into days dominated by a Fed shock and those by a growth shock suggests otherwise. Instead, most...

Fed's rate hike and its implications

Sep 09, 2015 00:23 am UTC| Commentary Central Banks

With a final solid payroll number under the belt, focus now turns squarely to the FedsSeptember 17thrate hike decision. BofAML describes the economic and policy backdrop and then looks at likely market responses to...