3 Central Banks, 3 Holds - Investec
Research Team at Investec, suggests that the three central bank meetings overnight saw all three policy makers remain on hold.
“The FOMC held interest rates as expected yesterday, although removed an explicit reference to global risks and acknowledged the continued improvements in the labour market, even with subdued overall economic activity. The overall message was the Fed are monitoring and ready to act if needed. The slightly more hawkish bias keeps the door open for a June rate rise, and initially saw some US Dollar buying. Although that soon pared as investors are well aware that the data dependant Fed gave no explicit steer on the likelihood of a June hike.
The Reserve Bank of New Zealand also held interest rates with some having expected a cut, subsequently the New Zealand Dollar relief-rallied post decision.
In Japan, the Bank of Japan (BOJ) held QE and negative rates firm, despite a lot of speculation the BOJ would ease policy after a stronger Yen and natural disasters may have sped up the central bank's thinking. A seemingly greater tolerance by the BOJ of persistent below target inflation has seen the Yen rise by around 3% since the policy announcement.”