Central Banks

A quickie on RBC’s latest ‘Central Bank Watch’ on the Bank of Canada and Reserve Bank of Australia    This may be of interest to AUD and CAD traders; good summaries of where we are at, where to next, and when On the Bank of Canada: With a disappointing start to the year, Canada’s Q1
US Fed’s Kaplan speaking to reporters in Beijing 10 April optimistic and hopeful  it’s clearly in the interests of both countries to have constructive trading relationship Kaplan understandably drawn into trade matters while on Chinese soil but remains equally, understandably, diplomatic. Elsewhere Reuters now carrying the story, citing Bloomberg’s unnamed source, that US-China trade talks
The wage puzzle continues The direct effect from the currently-proposed tariffs is small Sustainable trend growth in the US at the moment is 1.75% Says he’s pleased labor force participation has stopped falling US economy and labor market are very tight right now Getting inflation expectations to 2% is ‘biggest issue’ The takeaway here is
Speaking on Bloomberg television The Atlanta Fed president adds: Do not know how trade tariffs will end up Sees fiscal stimulus having a robust impact in the short run Delaying impact of tariffs on economy until he sees more He expects inflation to come in a bit higher though.  Sees inflation hitting 2% in the
Fed’s Bullard answers questions: Low productivity hampers GDP growth Coming Up! Title text for next article Answering audience questions He adds: not a strong relationship between wages and inflation impact limited if the dispute confined to steel and aluminum more general tariffs a more significant development
Reuters citing a working paper from China’s central bank 3 April CBs should adopt neg rate policy during deflationary recessions neg int rates can be used as a conventional monetary tool to revitalise growth digital currency will strengthen effectiveness of neg interest rate policy CBs should promote digital ccy which will eventually solve the problem
Further comments by BOJ’s Kuroda as he speaks in parliament Politics won’t get in the way when BOJ needs to exit easing policy Two key factors when BOJ exits easing policy are how to shrink balance sheet and raising short-term rates Cannot say how and at what pace to shrink balance sheet or raise rates
The Reserve Bank of Australia announces its monetary policy decision – 3 April 2018 Prior decision 1.50% Inflation likely to remain low for some time Unchanged policy consistent with economic growth and CPI target over time Sees inflation picking up gradually over time Central forecast remains for faster growth in 2018 Outlook for household consumption
China’s central bank out with a lending report for March 2 April The PBOC have confirmed they increased rates on Standard Lending Facility short-term loans by 5bps on 22 March, the day they raised another key rate. O/n loans were raised to 3.4%, 7-day to 3.55% and 1 month to 3.9%. The moves followed the