Banxico unlikely to hike bank rates amid softer growth

Aug 13, 2015 06:28 am UTC| Commentary Central Banks

Banxico published its Quarterly Inflation Report for the second quarter yesterday. Due to fall in oil production and manufacturing exports, the bank revised its annual growth forecasts for 2015 to a range of 1.7-2.5% from...

Bank of Korea easing risks fade little as vital signs improve

Aug 13, 2015 05:46 am UTC| Commentary Central Banks

The Bank of Korea held the policy rate at 1.5% in August as expected, after cutting rates in June. Todays decision was unanimous, helped by the firming of activity in the services economy after the MERS outbreak. The...

PBoC set CNY fixing rates lower again

Aug 12, 2015 07:39 am UTC| Commentary Central Banks

PBoC spiked the USD-CNY fixing rate by another 1008pips, or 1.62% this morning to 6.3306. The fixing rate is 0.09% weaker than yesterdays closing. The offshore CNH breached above 6.50 this morning after the CNY fixing,...

PBOC enters a new currency regime

Aug 11, 2015 22:44 pm UTC| Commentary Central Banks

The PBOC entered a new currency regime last night, effectively switching from a currency peg to a managed float. The move was probably motivated by two factors: (1) the delay of the SDR decision by nine months served as an...

PBoC stuns with Yuan devaluation - hedging activity to intensify

Aug 11, 2015 06:41 am UTC| Insights & Views Central Banks

In an announcement, the Chinese central bank has mentioned that it had tainted the way it computed the currencys daily midpoint against the greenback, now taking the midpoint from market-makers quotes and the previous days...

BOE tightening cycle likely to start in November

Aug 10, 2015 07:58 am UTC| Commentary Central Banks

Markets clearly perceive the cyclical positions of the US and UK to be similar and a gentle increase in US short rate expectations has been accompanied by rising expectations that the MPC cold start to unwind stimulus in...

NFP review in light of FOMC comments

Aug 07, 2015 12:59 pm UTC| Insights & Views Central Banks

Today US non-farm payroll pointed at weaker job gains for month of July, which casts some doubts over FEDs ability to hike rates after comments in last FOMC. In last FOMC, FED officials pointed that they are looking for...