Jiming Huang / Blog
The global economy is picking up steam. At the same time, inflation may be a little weak whilst remaining close to central banks' targets. So what is preventing them from tightening, asks Global Chief Economist Paul Donovan...
Great article in Bloomberg highlighting the disappearance of volatility in FI due to central bank’s interventionist policy. To reiterate a well-understood fact, central banks are suppressing the true price of risk in rates, which in turn are distorting all other market risk measures...
In spite of huge market expectations, Mario Draghi gave little information about the future of the QE and played for time once again. As broadly anticipated the European Central Bank did not change the level of any of its three key interest rates...
Finally, Wall Street is celebrating the removal of the immediate threat of the debt ceiling. However, the real news was Trump working with Democrats with a clear success. In rare bipartisan deal Trump, republicans with democrats extended the U.S...
Investors are bracing for an event heavy day. The highlight will clearly be the European central banks. However, the substantives information on monetary policy strategy path from this meeting is unlikely. We had originally penciled in a comments outlining the path towards normalization...
Watch CAD on BoC meeting today At today’s Bank of Canada monetary policy meeting we now expected a 25bp hike. The Canadian economy has accelerated for multiple quarters and expectations for rapid rise in inflation will persuade the bank to act now...
The Australian dollar took a hit overnight amid disappointing growth figures. The GDP grew 1.8%y/y, slightly below the 1.9% expected by most economists. On a quarter-over-quarter basis the economy grew 0.8% compared to 0.9% medina forecast...
Given the solid pick up in the Canadian economy the likelihood that the Bank of Canada rises interest rates by 25bp Sept 6th policy meeting has increase significantly. Exemplified by the strong 2Q GDP report, which indicated at 4.5% growth rate, the economy has expanded past the BoC projections...
As widely anticipated the Reserve Bank of Australia left the cash rate target unchanged at record low 1.50%. As usual the statement was quite balanced as Philip Lowe wants definitely to avoid fuelling further Aussie appreciation...