FOMC meeting tonight, forward guidance in the spotlight

Jul 28, 2015 22:23 pm UTC| Commentary Central Banks

For the FOMC tonight, its all about forward guidance. At Yellens congressional testimony two weeks ago, the Fed Chair neither ruled out a September hike, nor signalled September was a done deal. The non-committal message...

Russia: CBR likely to pause in July

Jul 28, 2015 16:53 pm UTC| Commentary Central Banks

Russia financial conditions have been changing as global oil prices have declined rapidly in recent months, down nearly 25% since early May. The RUB has accordingly been hit, down 22% since mid-May and depreciating more...

BoK rate hike seems unlikely on worries of capital outflows

Jul 28, 2015 13:02 pm UTC| Insights & Views Central Banks

The argument that the BoK has to raise the policy rates along with the US Feds rate hikes to prevent potential capital outflows is not defended by the most market participants, including the central bank and us. The...

Watch out for views from Gertjan Vlieghe, new BOE MPC member

Jul 28, 2015 11:29 am UTC| Insights & Views Central Banks

UK chancellor George Osborne today announced appointment of Gertjan Vlieghe, a senior economist at Brevan Howard Asset Management and a former director of Deutsche Bank as the next MPC member. He will be replacing David...

RBNZ cut the OCR by 25bp to 3.00%

Jul 22, 2015 23:19 pm UTC| Commentary Central Banks

The RBNZs OCR Review this morning cut the OCR by 25bp to 3.00%, and said more easing was likely. Westpac Research notes: The crucial guidance paragraph read: A reduction in the OCR is warranted by the softening in...

Dollar fights back with Fed rate hike closing in

Jul 22, 2015 12:56 pm UTC| Insights & Views Central Banks

Extreme dollar bulls are not giving up, instead attaching a probability that a July hike is possible, after last weeks testimony by FED chair Janet Yellen before congress, where she indicated that all meetings are live and...

China central bank has room for significant easing

Jul 22, 2015 05:42 am UTC| Commentary Central Banks

With China enjoying a current account surplus of 2% of GDP, inflation under control, with the latest reading is 1.4% yoy versus 6.45% in June 2011, and the deepest currency reserves in the world, the China Central Bank has...