September FOMC hike still expected, but risks are higher

Aug 20, 2015 03:35 am UTC| Commentary Central Banks

Data is consistent with the beginning of policy normalization in September. Data on US activity received since the July meeting have been quite positive on balance and should push the FOMC toward near-term lift-off. This...

Minutes of Fed's July 28-29 Meeting

Aug 19, 2015 19:03 pm UTC| Commentary Central Banks

The minutes provided no clues about the Feds preparedness to raise rates as early as the September meeting. Anticipating a clearer signal but getting none, Treasuries rallied and the dollar fell. While September remains on...

ECB to revise macroeconomic outlook in September meeting

Aug 19, 2015 08:09 am UTC| Commentary Central Banks

The July ECB minutes revealed cautious optimism, highlighting the fragility of the economic recovery, the weak inflation outlook and the balance of risks still tilted to the downside (even if these risks have not worsened...

Malaysia bears the brunt of currency weakness

Aug 19, 2015 07:42 am UTC| Commentary Central Banks

Bank Negara Malaysias Governor Zeti has said this week that the ringgits depreciation is manageable, that there is no need for a peg to the dollar, and that the central bank would seek to rebuild FX reserves. Currencies in...

Bank Indonesia likely to keep policy unchanged

Aug 19, 2015 07:39 am UTC| Commentary Central Banks

Despite significant market volatility, central banks elsewhere in Asia have yet to express serious alarm. Indonesia, with inflation running high, the central bank is ever-sensitive to a weaker currency, with Bank...

Central banks in Emerging Asia appear sanguine over recent currency weakness

Aug 19, 2015 07:13 am UTC| Commentary Central Banks

Indeed, while central banks meeting this week in Korea and the Philippines, rates unchanged took note of the PBoCs FX changes and the resulting market volatility, they suggested comfort with current policy stances. In...

CBRT’s new monetary policy

Aug 19, 2015 07:02 am UTC| Commentary Central Banks

As expected yesterday CBRT kept all rates on hold. Ahead of potential changes to the overall monetary policy mix, it made little sense to engage in a tightening of monetary policy. The announced changes in the Road Map...