The Mexican Central Bank, Banco de México raised rates for the 11th consecutive rate increase since June of 2021 and third straight by 75 basis points to 9.25% matching the previous three interest-rate moves by the U.S. Federal Reserve. The bank again increasing its forecasts for headline and core inflation forecasts. The size of future rate increases will depend on prevailing conditions, the bank added. Banco de México’s Governing Board decided to raise the target for the overnight interbank interest … Continue reading “Banco de México Raised Rates for 11th Straight Time to Record 9.25%”
Banco de México Raised Rates for 10th Straight Time to 8.50% as Inflation Hits 22 Year Highs
The Mexican Central Bank, Banco de México raised rates for the 10th consecutive rate increase since June of 2021 and second straight by 75 basis points to 8.50% matching the previous two interest-rate moves by the U.S. Federal Reserve. The bank again increasing its forecasts for headline and core inflation forecasts. The size of future rate increases will depend on prevailing conditions, the bank added. Banco de México’s Governing Board decided to raise the target for the overnight interbank interest … Continue reading “Banco de México Raised Rates for 10th Straight Time to 8.50% as Inflation Hits 22 Year Highs”
What You Need Know About Quantitative Tightening QT Bifurcations Explained
Most of us are familiar with QE but what is QT? When the Fed reduces its balance sheet it is known as quantitative tightening, the flipside of quantitative easing. The US Federal Reserve at its December FOMC put the world on notice that tighter financial conditions are ahead. What does it mean? The possible Bifurcations would make Mandelbrot wince. Firstly, the bond market has a lot more work as the task of financing governments gets more difficult without central banks … Continue reading “What You Need Know About Quantitative Tightening QT Bifurcations Explained”
Investors Record Exposure to Bond Duration Could Mean Trillions in Losses Should Interest Rates Rise Moderately
Inflation expectations around the globe continue to rise, hitting multi decade highs in some cases. With investors’ exposure to duration near record highs what may seem an unassuming rise in yields could inflicts trillions of dollars in losses.
Banco Central do Brasil Cuts Benchmark Rate 50bps To Record Low
Brazil’s central bank Banco Central do Brasil followed the Federal Reserve’s 25bp cut with a 50bps cut to record lows in a unanimous decision saying global economic outlook uncertain ands risks of greater slowdown persist.