Central Bank Watch – The Big Three Fed, ECB and BoE Set to Raise Rates Again

This week’s central bank main event was The Bank of Canada who hiked by 25bps to 4.50%. The Bank of Thailand raised its key interest rate by 25 basis points to 1.5%. Colombia’s BanRep hiked by 75bps but signaled the end of cycle nearing. Chile left their benchmark at 11.25% with a neutral bias. South Africa hiked the repo rate by 25bp to 7.25%. In the week ahead we get four central banks delivering policy decisions. We have the big … Continue reading “Central Bank Watch – The Big Three Fed, ECB and BoE Set to Raise Rates Again”

Central Bank Watch – Fed Tempers Rhetoric, Bank of Canada Ahead

This week’s central bank main event was The Bank of Japan who kept the status quo sending the dollar yen up 300 pips putting a bid inequities and bonds. We saw no change from the People’s Bank of China, Norges Bank, Bank Negara Malaysia Bank, and Central Bank of Turkey from their monetary policy meetings. Bank Indonesia however raised another 25bps. The Federal Reserve Biege Book was consistent with what we have seeing with economic data released, not a lot … Continue reading “Central Bank Watch – Fed Tempers Rhetoric, Bank of Canada Ahead”

Bank Indonesia Raised Rates Another 25 basis points to Highest Level Since 2009

Bank Indonesia increased interest rates by 25 bps during the first meeting of 2023, a sixth consecutive hike, on Thursday as it sought to tame inflation and strengthen the rupiah exchange rate. The benchmark 7-day reverse repurchase rate now stands at 5.75%, the deposit facility at 5.00% and the lending facility at 6.50%, their highest level since 2009 and in line with market forecasts. So far since August last year the central bank has lifted rates by 225bps. Indonesia’s annual inflation rate … Continue reading “Bank Indonesia Raised Rates Another 25 basis points to Highest Level Since 2009”

Dollar Yen Soars After Bank of Japan Keeps Monetary Policy Steady, No Change to JGB Yield Band

The Bank of Japan as widely expected kept unchanged its -0.1% target for short-term interest rates, and 0% for the 10-year government bond yield. There was much anticipation after last month the market was shocked with BOJ Gov. Haruhiko Kuroda adjusting the central bank’s yield curve control program. The BoJ announced no change to the Yield Band (YCC) and said the decision on the was YCC by a unanimous vote. The bank left forward guidance on th rate on hold. … Continue reading “Dollar Yen Soars After Bank of Japan Keeps Monetary Policy Steady, No Change to JGB Yield Band”

Central Bank Watch – Korea Raises, BOJ Sequel to JGB, Dollar Yen Massacre Ahead

This week’s main event was Chair Powell’s speech at the Riksbank International Symposium and the reaction to US CPI, the reaction was muted to a soft report, outside of rising Services inflation. The Bank of Korea raised the Base Rate to 3.50%, the highest level since late 2008 as expected. Bank of England policymaker Mann said more needs to be done on rates and there is no risk of overtightening yet. We had a slew of Fed speakers but nothing … Continue reading “Central Bank Watch – Korea Raises, BOJ Sequel to JGB, Dollar Yen Massacre Ahead”

Central Bank Watch – Powell, ECB and BoE Speakers at Riksbank

We kicked off 2023 with no surprises from the FOMC December meeting minutes which were followed up a barrage of Fed Speakers later in the week. They continued the party line but did caution on too fast, too high. This week’s main event will be Chair Powell’s speech at the Riksbank International Symposium and the reaction to US CPI, particularly given U.S. Treasuries closed out the first week of 2023 in beastly form Friday following the December jobs report average hourly earnings … Continue reading “Central Bank Watch – Powell, ECB and BoE Speakers at Riksbank”

Central Bank Watch – Fed Minutes and Speakers Kick off 2023

The highlight this week will be the FOMC Minutes on Wednesday from the December meeting. The equivalent meeting last year was when it became clear the Fed was pivoting to an aggressive agenda and the S&P had topped just two days before. From then we got the beginnings of the end for the stock market, crypto, bonds and a slew of other assets. We also get a barrage of Fed Speakers on Thursday and Friday, no doubt aware of marker … Continue reading “Central Bank Watch – Fed Minutes and Speakers Kick off 2023”

Central Bank Watch – The Bank of Japan Shocks, Turkey and Indonesia as Expected

The highlight this week came from the Bank of Japan. The BoJ shocked markets adjusting the central bank’s yield curve control program which saw yields rise sharply and a similar move in the yen. Dollar Yen went from 137.20 to 133.20 on the announcement. 10-year JGB yields surged to 0.455%, the highest since 2015 leading to a limit down halt on the Osaka Exchange. The Central Bank of Turkey left its key one-week repo rate unchanged at 9% in its … Continue reading “Central Bank Watch – The Bank of Japan Shocks, Turkey and Indonesia as Expected”

Bank Indonesia Raised Rates by 25 basis points to Highest Level Since 2009

Bank Indonesia increased interest rates by 25 bps during the last meeting of 2022, a fifth consecutive hike, on Thursday as it sought to tame inflation and strengthen the rupiah exchange rate. The benchmark 7-day reverse repurchase rate now stands at 5.5%, the deposit facility at 4.75% and the lending facility at 6.25%, their highest level since 2009 and in line with market forecasts. So far in 2022, the central bank has lifted rates by 200bps. Indonesia’s annual inflation rate fell to … Continue reading “Bank Indonesia Raised Rates by 25 basis points to Highest Level Since 2009”

Yen Soars After Bank of Japan Mini Pivot Widens Yield Curve Control Band

The Bank of Japan as widely expected kept unchanged its -0.1% target for short-term interest rates, and 0% for the 10-year government bond yield. However, the market was shocked with Bank of Japan Gov. Haruhiko Kuroda adjusting the central bank’s yield curve control program with saw yields rise sharply and a similar move in the yen. Dollar Yen went from 137.20 to 133.20 on the announcement. 10-year JGB yields surged to 0.455%, the highest since 2015 leading to a limit … Continue reading “Yen Soars After Bank of Japan Mini Pivot Widens Yield Curve Control Band”