BOC Highlights Rate Hike Headwinds

As widely expected, the Bank of Canada kept its headline cash rate unchanged at this month’s meeting with an accompanying statement that somewhat dampened bulls’ expectations. The BOC noted that its decision is “consistent with an economy operating with little slack”. Regarding inflation, the bank said that it sees total inflation hitting 2.3% t...

2018-04-19 James Harte Read more
FOMC minutes reveal a hawkish bias

The Federal Reserve Bank released its monetary policy minutes from the meeting that was held in March this year. The central bank had hiked interest rates by 25 basis points which was widely anticipated. At the meeting, central bank officials stuck to the baseline scenario of sticking with three rates hikes in 2018. Following the March rate h...

2018-04-19 John Benjamin Read more
FOMC Minutes Highlight Concerns Around Trade Wars

While the Fed has confirmed its commitment to normalising monetary policy, the US Dollar traded lower in response to the release of the latest FOMC meeting minutes which revealed concerns among the rate setting committee. Members of the Federal Reserve Board highlighted their concerns about the potential impact of a global trade war, specificall...

2018-04-16 James Harte Read more
BoE signals May rate hike

The Bank of England's monetary policy meeting last week saw the central bank leaving interest rates unchanged in a widely expected move. The BoE however signaled that it would stick to its previous plan of another rate hike in the May monetary policy meeting. The central bank held the interest rates unchanged at 0.50% at the meeting last week...

2018-04-02 John Benjamin Read more
Norges bank rate hike

The Norwegian central bank held its monetary policy meeting last week. As expected, interest rates were left unchanged at 0.50%. The central bank however, lifted the rate path which was in line with market expectations. "The outlook for the Norwegian economy suggests that it will soon be appropriate to raise the key policy rate," the central ...

2018-03-28 John Benjamin Read more
UK Data Summary

Data Risks Into The BOE Heading into the March Bank of England meeting, the market is widely expecting the BOE to keep rates on hold but, a great deal of attention will be placed on the accompanying statement. With the bank having previously given hawkish signals, many traders are looking for a rate rise at the upcoming May meeting, when the ba...

2018-03-23 James Harte Read more
new Fed chairman Powell

Economic Outlook Has Improved The US Dollar strengthened in late trading yesterday in reaction to comments made by new Fed chairman Powell during his first testimony. Perhaps the most market moving comments were those in reference to how the Fed’s economic outlook has developed since the December FOMC. Speaking during the testimony new Fed chai...

2018-03-12 James Harte Read more
US CPI increase

The US CPI increase or Consumer prices were seen to be rising more than expected during the month of January, official data showed last week. Headline CPI increased 0.5% on a month over month basis while core inflation rate rose 0.3% on the month. This was higher than the forecasts of 0.3% on the headline and 0.2% on the core. On an annual ba...

2018-03-23 John Benjamin Read more
Will the Bank of Canada hike it's rates

Will the Bank of Canada hike it's rates on this coming Wednesday? Some say it should and will. Others think rates should be kept on hold due to heightened uncertainty surrounding negotiations about the North American Free Trade Agreement. So, what will the Canadian central bank do? What should it do?   Do not wait for NAFTA Although NA...

2018-01-25 Ashraf Laidi Read more
Australian dollar

The Australian Dollar came under pressure overnight as the RBA kept rates on hold, as widely expected, noting that wage growth and retails sales remain subdued as does inflation, which continues to be weaker than expected. Governor Lowe said that “In underlying terms, inflations is likely to remain low for some time, reflecting the slow growth i...

2018-01-25 James Harte Read more