Inflation/Deflation
Both supply- and demand-side forces contributed to the inflation surge in 2021/2022. According to the San Francisco Fed’s estimates, the contribution of demand-side forces to annual core PCE inflation jumped from -0.09 percentage points (pp) in February 2021…
Does the recent surprise rate cut by the Swiss National Bank augur other dovish surprises among major central banks in Europe?
The Chinese yuan slide sharply against the US dollar on Friday, breaching the 7.2 level. The weakness comes after the PBOC loosened its hold on the currency by setting a weaker-than-anticipated daily fixing. The move underscores that Chinese authorities are…
The Swiss National Bank’s 25 basis point rate cut on Thursday came as a dovish surprise to market participants anticipating it would hold the policy rate unchanged. The rate cut, which brought the policy rate down to 1.5% makes the SNB the first among its G10…
The US Presidential election is eight months away. In this report, we will be looking at what is left of President Biden’s political capital and his room for actions in the next few months which may include market-negative actions such as the recently announced investigation into Apple.
The UK CPI report showed inflation eased by more than anticipated in February. Headline CPI inflation dropped from 4.0% y/y to 3.4% y/y – below consensus estimates of 3.5% y/y and the weakest increase since September 2021. Similarly, the slowdown in core…
There were no meaningful adjustments to the Fed’s communication on Wednesday. The post meeting statement was essentially unchanged with Chair Jay Powell noting that the risks to achieving the Fed’s goals are coming into better balance. Powell did acknowledge…
The Bank of Japan delivered a historic policy adjustment this week, ending both negative interest rates and Yield Curve Control. In this Insight, BCA’s global fixed income and currency strategists discuss the immediate implications of the move for Japanese bond yields and the yen, and the potential for additional tightening actions.
Canada’s CPI release for February shows price pressures continue to ebb with the various measures of inflation all falling below consensus estimates. In particular, headline inflation decelerated from 2.9% y/y to 2.8% y/y – its lowest since March 2021 and…