Central Banks

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The Federal Reserve as expected kept rates at at 1.50%-1.75%, as expected after a two day meeting on Wednesday with Jerome Powell as Chairman. Markets had priced in a 97% chance of No Change. Leaves forecasts for GDP and inflation unchanged, lowers unemployment.

Yves Mersch, senior member of the Executive Board of the ECB on Monday warned that asset prices are currently at very elevated levels. This comes at a time near all time highs in many global stock markets despite elvated risk.

ECB left rates unchanged as expected in December in the second month of controversial Christine Lagarde at the helm. 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. 

The Bank of Canada held its key lending rate at 1.75 percent on Wednesday as expected. The BoC was more dovish however "growth in the near term will be weaker, and the output gap wider, than the Bank projected in October."

Bank of England's Silvana Tenreyro said today her inclination is towards a rate cut if downside risks emerge, currently the BoE base rate is 0.75%. She added discussing the possibility of stimulus, current asset purchase target is £435 billion with a corporate bonds  £10 billion.

ECB left rates unchanged as expected in December in the forst month of controversial Christine Lagarde at the helm. 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. 

The Swiss National Bank kept negative interest rates unchanged at -0.75% for sight deposits. The SNB made no key changes in their language as they continue to keep negative rates and reiterated that the Swiss franc remains "highly valued".

The Federal Reserve as expected kept rates at at 1.50%-1.75%, as expected after a two day meeting on Wednesday with Jerome Powell as Chairman. Markets had priced in a 97% chance of no Change. Leaves forecasts for GDP and inflation unchanged, lowers unemployment.

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

The Reserve Bank of Australia held interest rates in December at a historic low of  0.75 per cent. RBA said given long lags in monetary policy, decided to hold steady

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