Philippines Central Bank Surprised Raising Rates to 6.50% in Emergency Meeting, Warns of Future Hikes

The Monetary Board of the Bangko Sentral ng Pilipinas (BSP), Philippines central bank raised its benchmark interest rate by 25 basis points and hinted at further hikes to contain surging inflation following an emergency meeting on Thursday, lifting the key rate to 6.5%. The move came after inflation accelerated to 6.1% year-on-year in September as food prices rose. It is the highest since the 7.50 percent logged in May 2007. Since it started raising interest rates in May last year, … Continue reading “Philippines Central Bank Surprised Raising Rates to 6.50% in Emergency Meeting, Warns of Future Hikes”

Central Bank Watch – Week Ahead Focus on ECB, BoC, Chile, Turkey, Hungary, Russia and Israel

The Treasury market continues to respond to hotter inflation, greater supply and credit risk, PBOC, Fed Chair Powell and Bank of Korea offered nothing new in that regard. Bank Indonesia surprised markets with an unexpected 25bps to address weakness in the rupiah that raises risks to financial stability and imported inflation, it didn’t work. The week ahead focus will be on the ECB, Bank of Canada, Banco Central de Chile, Central Bank of Turkey, National Bank of Hungary, Central Bank … Continue reading “Central Bank Watch – Week Ahead Focus on ECB, BoC, Chile, Turkey, Hungary, Russia and Israel”

Central Bank Watch – Week Ahead Focus on PBOC and Fed’s Powell

Another violent week in the Treasury market with hotter inflation reports but more geopolitical risk with Hammas and Israel adding to the Russian Ukraine war. The ECB and Federal Reserve minutes told us nothing new, nor did speeches by Federal Reserve, ECB and Bank of England officials. Of note in the week ahead will be the PBOC’s decision into the Monday Asian market open and Fed Chair Powell’s address on Thursday. Bank Indonesia and Bank of Korea are both expected … Continue reading “Central Bank Watch – Week Ahead Focus on PBOC and Fed’s Powell”

Central Bank Watch – Week Ahead Focus on FOMC and ECB Minutes

With the violent week in the Treasury market fresh we get the Federal Reserve minutes to the prior two-day FOMC meeting on September 19th – 20th. From that meeting bonds sold off as higher rates were priced for a longer period and haven’t stopped selling off since. US markets are on holiday Monday for Columbus Day. We will get more speeches by Federal Reserve, ECB and Bank of England officials. ECB will also release its monetary policy meeting accounts. The … Continue reading “Central Bank Watch – Week Ahead Focus on FOMC and ECB Minutes”

Central Bank Watch – Week Ahead Focus on RBA, RBNZ, RBI, Powell and US Jobs Report

Five central banks will deliver policy decisions in the week ahead with little impact seen locally or globally. The RBA, RBI, RBNZ all likely to hold. Peru’s and Poland’s central banks are expected to cut again. We have a plethora of Fed and ECB speakers including Powell and Lagarde. We have CPI from Chile, Colombia, Peru, Switzerland, Australia, Indonesia, Philippines, South Korea, Taiwan and Thailand. Focus will be on the jobs reports out of the US and Canada Friday. In … Continue reading “Central Bank Watch – Week Ahead Focus on RBA, RBNZ, RBI, Powell and US Jobs Report”

Central Bank Watch – Week Ahead Focus on U.S. and Eurozone inflation

In the past week we had the Fed’s FOMC, Bank of England, Bank of Japan, PBOC, Norges Bank, Riksbank, Swiss National Bank, Banco Central do Brasil, Central Bank of China Taiwan, Hong Kong, Bangko Sentral ng Pilipinas, Bank Indonesia, Turkey’s Central Bank and South African Reserve Bank. Further to that a slew of global macro readings. The end result was the higher for longer tone sent bonds and stock markets lower. With the big dogs out of the way we … Continue reading “Central Bank Watch – Week Ahead Focus on U.S. and Eurozone inflation”

Brazil Central Bank Cut Rates 50bps to 12.75%, Signals More Cuts

Banco Central do Brasil​ cut the Selic rate 50bps to 12.75% at its September meeting in line with market expectations. It was the second half a percentage point cut in a row and signaled it will keep the same pace of monetary easing at least through year’s end. The Brazilian real fell 0.7% in response. Annual inflation is within the bank’s tolerance range and closely watched services price pressures are waning. Several Latin American countries have also been relaxing monetary … Continue reading “Brazil Central Bank Cut Rates 50bps to 12.75%, Signals More Cuts”

Central Bank Watch – Week Ahead Focus on FOMC, BOE, SNB, BOJ and PBOC

In the past week we had the ECB, PBOC and Peru central banks all acted as expected. In the week ahead we get a tidal wave of central banks meeting. The People’s Bank of China as already said lowered the foreign exchange reserve requirement ratio to 4.00% from 6.00%, effective September 15. The PBOC also confirmed speculation about rate cuts on some existing mortgages, effective September 25. There will be fifteen Central Bank decisions in the week ahead. Fed’s FOMC, … Continue reading “Central Bank Watch – Week Ahead Focus on FOMC, BOE, SNB, BOJ and PBOC”

Central Bank Watch – Week Ahead Focus on ECB, PBOC and Inflation

In the past week we had Bank of Canada, Reserve Bank of Australia and Bank Negara as expected stayed pat. Banco Central de Chile and Poland as expected cut rates, however Poland’s central bank surprised cutting by 75bps rather than 25bps. In the week ahead we have the ECB where markets are pricing less than 50% odds that a 25bps hike may be delivered. We also get the PBOC who are not expected to change its key policy rate. Finally, … Continue reading “Central Bank Watch – Week Ahead Focus on ECB, PBOC and Inflation”

Central Bank Watch – Week Ahead Focus on Canada, Australia, Malaysia, Poland and Chile

In the past week we had just one bank rate meeting, where The Monetary Council of the National Bank of Hungary (MNB) lowered interest rates by 100 basis points. On Friday Cleveland Fed President (non-voter) Mester said that inflation remains too high, though some progress has been made. The People’s Bank of China said they will lower the foreign exchange reserve requirement ratio to 4.00% from 6.00%, effective September 15. The PBOC also confirmed speculation about rate cuts on some … Continue reading “Central Bank Watch – Week Ahead Focus on Canada, Australia, Malaysia, Poland and Chile”