RBA Keep Rates At Record Low 0.10% With Household Consumption Rebounding Strongly

The Reserve Bank of Australia held interest rates at an all-time low on Tuesday to just 0.1% as widely expected. The RBA said the economy is expected to return to pre-Delta path in H1 2022. Leading indicators point to a strong recovery in labor market. RBA Cutting & Printing Highlights Cash rate cut maintained at 0.1% Omicron variant is new source of uncertainty Household consumption is rebounding strongly The outlook for business investment has improved Economy expected to return to … Continue reading “RBA Keep Rates At Record Low 0.10% With Household Consumption Rebounding Strongly”

RBA Says Underlying Inflation at 2.5% Mid-Point Would Not Warrant Rate Rise

Reserve Bank of Australia Governor Lowe in giving a speech after today’s release of the RBA November meeting minutes addressed what it would require for a rate rise in Australia. He spoke of varying inflation degrees and the difference domestically and globally.   Reserve Bank of Australia Governor Lowe speech:  Recent Trends in Inflation  Address to the Australian Business Economists (ABE)Online and Sydney – 16 November 2021  Speech Headlines via Reuters  Latest data, forecasts do not warrant a rate rise in 2022 Economy, … Continue reading “RBA Says Underlying Inflation at 2.5% Mid-Point Would Not Warrant Rate Rise”

Bank of England Holds Base Rate at 0.10%, Upward Pressure on Inflation Expected To Dissipate

The Bank of England MPC at it’s November meeting voted 7-2 (Ramsden and Saunders dissented)to maintain Bank Rate at 0.1%. The Committee voted 6-3 (Ramsden, Saunders, Mann dissented) to maintain corporate bond purchases at £20 billion and government bond purchases at £875.   Highlights: Bank of England announced  September 23 2021 monetary policy decision Unchanged at prior 0.10% Official bank rate votes 0-0-9 vs 0-0-9 expected Bank rate vote 7-2 (Ramsden and Saunders dissented) Gilts Asset purchase target £875 bn … Continue reading “Bank of England Holds Base Rate at 0.10%, Upward Pressure on Inflation Expected To Dissipate”

Federal Reserve Leaves Rates Unchanged, Begins Taper at $15Billion per Month as Expected

The Federal Reserve kept rates unchanged at their November meeting, Cut in pace of Treasuries $10B/month as expected, Cut in pace of MBS $5B/month as expected. Inflation is elevated, largely reflecting factors that are expected to be transitory

RBA Keep Rates At Record Low 0.10% Ends April 2024 Aussie Bond 0.1% target

The Reserve Bank of Australia held interest rates at an all time low on Tuesday to just 0.1% as widely expected. The RBA discontinued the target of 10bp for April 2024 Australian Government bond after 10-year Aussie bonds broke over 2% for first time since March 2019. RBA Cutting & Printing Highlights Cash rate cut maintained at 0.1% 3-year bond yields target 0.10% Interest rate on new drawings under the Term Funding Facility to 0.1 per cent Interest rate on … Continue reading “RBA Keep Rates At Record Low 0.10% Ends April 2024 Aussie Bond 0.1% target”

ECB Leaves Rates Unchanged, APP will continue at a monthly pace of €20 billion

ECB left rates unchanged as expected in October. 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. ECB again judges that favourable financing conditions can be maintained with a moderately lower pace of PEPP purchases

Bank of Canada Ends Bond Purchases Abruptly and Unexpectantly Sending Loonie Sharply Higher

Bank of Canada surprised by ending the QE bomd buyimg program from $2 billion per week to nil, it was expected to cut to $1billion a week. The BoC leftthe key lending rate at 0.25 percent Wednesday as expected.

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.

Federal Reserve Beige Book Highlights Positive Growth in Consumer Spending

The Federal Reserve released it’s Biege Book Wednesday with the focus on growth in consumer spending. Most Districts reported significantly elevated prices, fueled by rising demand for goods and raw materials.