Central Banks

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The Bank of Japan announced no change to monetary policy as widely expected. The BOJ short-term interest target kept at -0.1% and the 10 year JGB yield target remains around 0%. The ETF buy cap stays at 12tln yen. The bank expects core consumer inflation to hit 0.1% in the current fiscal year.

ECB left rates unchanged as expected in April. The bank left deposit facility interest rates at -.50% and held steady rates on the main refinancing operations and on the marginal lending facility unchanged. PEPP purchases over the current quarter to continue to be significantly higher. Reaffirms size of PEPP program at €1.85 trillion.

The Bank of Canada left the key lending rate at 0.25 percent on Wednesday as expected. BoC repeated it will hold interest rate at the effective lower bound until economic slack is absorbed. Bank of Canada reduces bond purchases to C$3 billion a week, moves forward its projection for full recovery to second half of 2022.

Fed Chairman Powell comments came across the wires with an unannounced response to Senator Rick Scott (Fla R) that too low inflation harms families and business. On low treasury yields he said they attested to strong global demand for safe liquid assets.

South Korea's Monetary Policy Board of the Bank of Korea decided today to leave the Base Rate unchanged at 0.50% for the intermeeting period as expected. GDP growth this year is projected to be above the February forecast of 3.0%.

The Reserve Bank of Australia's twice yearly Financial Stability Review provided no surprises. Earlier in the week the RBA held interest rates at an all time low on Tuesday to just 0.1% as widely expected. Australian banks in strong financial position coming out of pandemic banks have abundant liquidity and funding,

The Reserve Bank of Australia held interest rates at an all time low in April to just 0.1% as widely expected. The RBA repeated policy to remain very easy for some time and remains committed to maintaining highly supportive monetary conditions until its goals are achieved.

The Reserve Bank of Australia held interest rates at an all time low on Tuesday to just 0.1% as widely expected. RBA remains committed to maintaining highly supportive monetary conditions until its goals are achieved. RBA later in the year will consider whether to retain April 2024 bond as target bond.

People's Bank of China Governor Yi Gang, who was Zhou Xiaochuan's protégé. announced over the weekend that the PBOC has room to provide liquidity to the economy. Yi is a technocrat with over 20 years  experience at the PBoC and is not moved by outside parties calling for restraint.

The Federal Reserve kept rates unchanged at their March meeting, kept QE infinity open with TALF for open-ended Treasuries, MBS and corporate bonds in amounts needed. Fed will continue to buy paper at current pace of $120B/month of Treasuries and MBS combined. Compare that to $40B/month in QE3.

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