<p>RBA is expected to leave the Bank rate unchanged at 0.75% in March. However, disastrous coronavirus outbreak in China is expected to hurt Australia’s economy, triggering the members to push forward further easing in as soon as April. Indeed, the market has priced in 60% chance of a rate cut in April, up from 25% […]

<p>The market has priced in a 60% chance of a BOC rate cut this week, up from virtually 0% two weeks ago. While moderation in domestic growth has suggested that further easing is likely, the coronavirus outbreak and its impact have the potential to push forward the rate cut schedule. Further easing is likely given […]

<p>RBA becomes the first central bank to cut interest rate in light of the negative impacts from the coronavirus outbreak. The central bank lowered the cash rate by -25 bps to 0.50% in March, expected to ease further in the near future. As revealed in the accompanying statement, the members worried that the pandemic could […]

<p>While leaving the monetary policy unchanged at expected, BOC delivered a dovish tone at the accompanying statement. This raised hopes of a rate cut in coming months and sent the loonie lower. The central bank has turned less confident about the near-term economic outlook, forecasting that the slowdown in 4Q19 could continue in early 2020.

<p>It is widely expected that the Fed will leave the policy rate unchanged at 1.5-1.75% at the January meeting. Meanwhile, we believe the accompanying statement will contain only minor change from the one in December. Major economic data will be released days after the FOMC meeting. Yet, the Fed will likely reiterate that risk to […]

<p>The market is mixed regarding whether BOE will lower the Bank rate at the upcoming meeting. Now the dust has settled for Brexit, the focus is turned to BOE’s monetary policy decision. Weakening in inflation suggests that a rate cut might be appropriate. Meanwhile, a cut in governor Mark Carney’s last meeting could make the […]

<p>FOMC left the Fed funds rate unchanged at 1.50-1.75% as widely anticipated. The accompanying statement contained few changes which were skewed to a mildly dovish side. Given the Fed’s dissatisfaction over weak inflation and uncertainty over global growth, the market has now priced in over 80% that the Fed would lower interest rate by at [&

<p>BOE kept the Bank rate unchanged at 0.75% but revised lower GDP growth and inflation forecasts. British pound strengthened against US dollar as the Committee voted 7-2 for the decision. The market had anticipated more members to support rate cut. Once again, Michael Saunders and Jonathan Haskel favored lowering the policy rate. The decisio

<p>The encouraging employment report might make the case of rate cut less strong this month. Economic developments since the December meeting have been mixed at best. Although job market and inflation showed improvement, GDP growth in the third quarter slowed as contribution from household spending dropped while impacts of large bushfires in

<p>RBA left the cash rate unchanged at 0.75%. To our surprise, policymakers appeared more upbeat on the economic outlook than we had anticipated. While acknowledging uncertainty to growth mainly driven by bushfires and China’s coronavirus, the members adopt a wait-and-see mode to the impacts. They also preferred to gauge the impacts of the ra