Low inflation argues for the Fed to move relatively quickly toward rate cuts. Continued above-trend GDP growth poses a risk to this view, but leading indicators point to slower growth in the coming quarters.
We look at the implications for FX from the slew of central bank meetings this week.
Government bond yields rallied and yield curves steepened across the Eurozone on Thursday following a less hawkish than anticipated tone from the ECB. As expected, the central bank kept policy rates unchanged and reiterated that…
The Bank of Canada (BoC) kept rates steady at yesterday’s monetary policy meeting, leaving its policy rate at 5%. The central bank presented updated economic projections in a new Monetary Policy Report (MPR), which were…
Chinese policymakers have ramped up their efforts to support the economy and financial markets over the past few days. On Wednesday, the People’s Bank of China (PBoC) announced that on February 5 it will cut the reserve…
Ahead of today’s Bank of Canada (BoC) meeting and the Reserve Bank of Australia (RBA) meeting on February 6th, our Global Fixed Income Strategists compared the monetary policy outlooks for both central banks. In Canada,…
As expected, the Bank of Japan maintained its ultra-easy monetary policy stance at its meeting on Tuesday, making no changes in interest rates or yield curve control. The monetary policy statement highlighted that elevated…
Results of the ECB’s quarterly Bank Lending Survey suggest that the tight monetary policy stance is still weighing on the Eurozone economy. Banks tightened credit standards for businesses and consumers further in Q4…
In this Strategy Insight, we assess the monetary policy path for Australia and Canada in 2024 and we discuss how to profit from a growing divergence between the two economies.
BCA Research’s European Investment Strategy service concludes that investors should go long German curve steepeners. Last week at Davos, European Central Bank (ECB) President Christine Lagarde leaned heavily against the…