Central Banks

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The Reserve Bank of Australia left interest rates unchanged in August at a historic low of 1.00 per cent after cutting the two prior months after 33 consecutive months at 1.50%. Will ease monetary policy further if needed

The Bank of England voted 9 to 0 to maintain Base Rate at 0.75%. The asset purchase target of £435 billion with a corporate bond target £10 billion for bond purchases was voted unaminous. Brexit uncertainty overhangs forecasts.

The Federal Reserve as expected cut rates to 2.00 -.25% after a two day meeting on Wednesday with Jerome Powell as Chairman. Markets had priced in a 93% chance of the Change. Says Labor market remains strong but business investment soft.

ECB interest rates on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchangedvas expected. Says will examine options for tiering, potential QE

There has been constant chatter China will dump it's US Treasury holdings. While they have fallen for the last 3 months, from $1120 to 1110 trillion the biggest seller was Japan in May. Ahead of Brexit the UK increased their holdings of US securities the U.S. Department of the Treasury's Treasury International Capital (TIC) data for May 2019.

The Bank of Canada held its key lending rate at 1.75 percent on Wednesday as expected. The BoC said escalating trade conflict casts doubt on global outlook but Canada's economy is returning to growth around potential, as expected.

The Reserve Bank of Australia cut interest rates in July to a historic low of 1.00 per cent for the second month in a row after 33 consecutive months at 1.50%. The RBA Rate cut to reduce joblessness and to achieve more progress towards inflation target

The Bank of England voted 9 to 0 to maintain Base Rate at 0.75%. The asset purchase target of £435 billion with a corporate bond target £10 billion for bond purchases was voted unaminous.

The Federal Reserve as expected kept rates at 2.25 -.50% as expected after a two day meeting on Wednesday with Jerome Powell as Chairman. Markets had priced in a 93% chance of No Change. Says Labor market remains strong and that economic activity is rising at a moderate rate.

Goldman Sachs say that Banco de México, Mexico's central bank may respond with a surprise rate cut They cite an underperforming economy, cost of border protection and widening output gap.

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