Will central banks cut rates as expected?
Perhaps understandably, there’s been what might be called ‘rate-cut-creep’ in the markets as it seems that both analysts and market pricing have inched forward the...
Perhaps understandably, there’s been what might be called ‘rate-cut-creep’ in the markets as it seems that both analysts and market pricing have inched forward the...
Trust in the Fed Chair is the lowest it has ever been according to Gallup and if you think that this is only a problem in the US, just look at the UK where politicians...
It seems that developed-country central banks have finished their tightening cycle, with the exception of the BoJ which has yet to start. But those banks meeting this...
Central banks have come in for a lot of criticism for missing the surge in inflation.
Some central bankers continue to stress that monetary policy has to stay restrictive for a considerable period of time.
Many economists said 2024 would be a year of rate cuts even though inflation will likely lie above target levels.
What we are talking about is the losses that many central banks are making.
The ECB seemed to send out a clear message last week that policy rates won’t rise again if the economy develops as the bank expects.
Are central banks starting an easing cycle well ahead of major central banks such as the Fed and ECB taking a risk with their currencies? The recent slump in the Polish...
Most G10 central banks have 2% inflation targets and most forecast that inflation will be down to this level, or only slightly above, within the next few years.
For some central banks, the interest rate cutting cycle has begun. But with the Fed widely seen to be some nine months to a year away from its first cut, does this mean...
Inflation has come down in most G10 countries, but central banks have not caused it. This may seem controversial argument but it is not really.
There has been much made of the fact that sharp rate hikes from just about all G10 central banks have not led to the depth of economic slowdown that was feared.
Many central banks hold out hopes that they can both defeat inflation and avoid a recession, the Reserve Bank of New Zealand appears far more realistic about its chances.
Nobody said the rate hike pause would be easy, and this is certainly proving the case when it comes to a policy pause from G10 central banks.
The Fed has suggested that it has paused its rate hikes. It is not the first developed-country central bank to do so and others could be joining soon, such as ECB, BoE.
Many central banks have purchased gold for their reserves, which might boost the price of gold to a new high.
Central banks have been at pains to argue that the objectives of inflation control and financial stability do not conflict.
Many central banks are concerned about reducing inflation while maintaining financial stability.
Financial stability risks arising from banking stress make policy judgments far harder for central banks.
All G10 central banks are data dependent when they set policy and most emerging market central banks too.
There are reasons to fear that inflation won’t decline in the way that central banks expect.