Central Banks

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The Reserve Bank has kept interest rates on hold at the historic low of 1.5 per cent for the 19th consecutive meeting.

ECB President Draghi in his press conference spoke of being surprised by all European countries moderation of growth or loss of momentum after hinting at stronger EuroZone growth previously. They still see hope in wage growth and inflation.

ECB interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged.

The Bank of Canada holds its key lending rate at 1.25 percent on Wednesday.

Reserve Bank of Australia leaves the cash rate unchanged at 1.50 per cent.

Bank of England Monetary Policy Committee voted by a majority of 7-2 to maintain Bank Rate at 0.50%. The committee also voted unanimously to maintain the stock of corporate bond purchases and UK government bond purchases.

The Federal Reserve hiked interest rates a quarter percent as expected after a two day meeting on Wednesday for the first time with Jerome Powell as Chairman. Markets had priced in a 90% chance of 25 bp hike.

Zhou Xiaochuan after 15 years as head of the People’s Bank of China is retiring with his protégé Yi Gang taking over. Yi  is a technocrat with over 20 years  experience at the PBoC.

Haruhiko Kuroda was reappointed for another five years as Governor of the Bank of Japan Friday in Japan's National Diet lower house. Koroda is a sprightly 73 and been in the job since 2013. The move was expected and contunes more of the same for Japan.

In what appears as a mirror image of ECB chair Draghi's comments last week a dovish  Bank of Canada head Poloz said that Canada maybe able to handle more growth without inflation.

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