Monetary Policy
The Philippines’ central bank raised rates to 4.75%, but higher policy rates are unlikely to provide much support to the peso or local assets. The central bank hiked by 25 bps, citing rising energy and food inflation. With headline CPI already well above…
We react to DM central bank meetings this week and highlight the opportunities emerging across global fixed income and currency markets.
Kevin Warsh announced an ambitious reform agenda for the Federal Reserve. We discuss the potential impact and the current outlook for interest rates.
La Fed dejó las tasas sin cambios en 3,5%-3,75% en una votación unánime, aunque la reunión tuvo un sesgo halcón. La reunión marcó una nueva era para la comunicación de la Fed, con un comunicado mucho más corto y poca, si es que hubo, orientación prospectiva.…
El Riksbank mantuvo su tasa de política en 1,75% por la sexta reunión consecutiva, como se esperaba, pero modificó su orientación en una dirección más agresiva. El banco central señaló una mayor probabilidad de una subida este año, citando el aumento de las…
The Bank of Japan raised rates to their highest since 1995, but market pricing still understates the tightening path. The BoJ hiked 25 bps to 1%, as expected, in a 7-1 decision. This marks another step in Japan’s exit from its structurally deflationary…
The RBA held rates, and further tightening looks unlikely despite the hawkish rhetoric. The policy rate was left unchanged, as expected, after three consecutive hikes totaling 75 bps. The decision was unanimous. Still, Governor Bullock declined to rule out…
The ECB hiked as expected, but further tightening would be a mistake that ultimately supports European bonds. The policy rate was raised by 25 bps to 2.25%, as expected. The ECB also revised its inflation forecasts higher and its growth forecasts lower. It…
The Bank of Canada kept rates unchanged and still sees two-sided risks around the inflation outlook. The policy rate was left at 2.25% for a fifth consecutive meeting, in line with expectations. At 2.25%, it remains at the bottom of the BoC’s estimated…
Australia's May NAB survey pointed to softer growth, with moderating price pressures reinforcing the case that the RBA's tightening cycle is over. Business conditions held steady at +3, firmly below the long-term average, after falling every month this year.…