Reuters reports that San Francisco Federal Reserve Bank President Mary Daly said on Thursday that a 50 basis point interest rate hike in September “makes sense” given recent economic data including on inflation, but that she is open to a bigger rate hike if data warrants. ”Saying that she does not want to be ‘headfaked’ by… Read More »
“The Reserve Bank of New Zealand (RBNZ) will stick to its hawkish stance and deliver a fourth straight half-point rate hike on Wednesday in its most aggressive tightening in over two decades to try to rein in stubbornly-high inflation,” as per the latest Reuters poll published early Friday morning in Asia. Key findings All 23… Read More »
Gold could be on the verge of a significant downside correction. The US dollar bulls are emerging as markets digest Fed speak and inflation data. The gold price is back to flat in the close on Wall Street following a move in the US dollar and yields that have shaken out some weak hands that have… Read More »
Reuters reported that the Bank of Mexico hiked its benchmark interest rate by three-quarters of a percentage point to a record rate of 8.5% on Thursday, mirroring the US Federal Reserve’s most recent policy decision as inflation surged to an over two-decade high. The five board members of Banxico, as the central bank is known, voted… Read More »
The Federal Reserve will be prepared to hold interest rates “higher for longer” should inflation continue to surprise to the upside, and market pricing will need to adjust accordingly, Fed’s St. Louis president James Bullard said on Tuesday who wants rates at 4% by the end of the year. US CPI in focus Meanwhile, investors will… Read More »
“The Bank of Japan (BOJ) expects prices to rise more quickly than officials had anticipated at their July meeting,” MNI reports, citing people familiar with the central bank’s thinking. But the sources added that the jump in inflation to 3% or higher later this year, however, will not be enough to prompt any shift in… Read More »
Inflation in OECD countries is expected to be structurally higher in the future due to the combination of several factors. If inflation is structurally higher, it will be necessary to consider raising central banks’ inflation targets to prevent them from having to conduct a perpetually restrictive monetary policy, in the view of analysts at Natixis Inflation… Read More »
Head of Research at UOB Group Suan Teck Kin, CFA, assesses the latest RBI monetary policy decision. Key Takeaways “The Reserve Bank of India (RBI) lifted its benchmark repo rate by 50 bps to 5.40% from 4.90% in its Aug monetary policy meeting in a unanimous decision. The move was more aggressive than Bloomberg survey… Read More »
EUR/JPY prints five-day uptrend while extending the bounce off the lowest levels since mid-May. Softer US dollar, hopes of sustained easy money policies from the Bank of Japan (BOJ) favor pair buyers. Moody’s downgrade Italy’s credit outlook, yields pare post-NFP gains amid a sluggish session. Downbeat Japan data, weekend numbers from China appeared to have… Read More »
EUR/USD is under pressure following a blockbuster US jobs report. The price is starting to decelerate in the bull weekly correction. EUR/USD is flat at the start of the week following Friday’s sell-off from the 1.0250s that reached a low of 1.0141. The move came from a blockbuster US Nonfarm Payrolls report. The US employment… Read More »
