Central Banks

Powell from his interview with Marketplace radio We’ve seen wages move up ‘a little bit more’ in the past year Productivity has been very low  There is still a bit of a puzzle in that we’re hearing about labor shortages now all over the country in many, many different occupations in different geographies. And one
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Central banks should be trying to minimize volatility but the Bank of Canada has embraced it The Bank of Canada seems to view volatility is a virtue and it’s hurting the Canadian economy. There is no value whatsoever in surprises, but Poloz seems to think it’s best never to send a clear signal and then
Sweden’s central bank announces its July monetary policy decision Prior -0.50% Rate increases may start towards the end of the year Inflationary pressures are moderate Deputy governor Floden entered a reservation against repo rate path in the report Floden advocated a repo rate path that indicated an initial increase of repo rate by 0.25% in
The Reserve Bank of Australia monetary policy decision and statement are due at 0430GMT I posted previews here: This now via Westpac: The RBA will hold rates unchanged at their July meeting, as they have since they last cut rates in August 2016. The Governor’s decision statement is likely to repeat the line that: “further
Highlights of the Bank of Canada’s Q2 2018 business outlook survey Prior future sales was +16% Some moderation in expectations for sales growth Capacity pressures rose, with firms citing significant difficulty in meeting an unanticipated increase in demand Labor shortage indicators point to tighter labor markets, firms say shortages more intense than 12 months ago
Some thoughts from around the place on the yuan weakness SG: USD/CNY in the past week is “clearly a trial balloon” (in response to trade threats)  Too much depreciation could be counterproductive (SG mention what happened in 2015-2016) And also counterproductive to China’s internationalization objectives – attracting foreign equity/bond capital Highlight the risk here, though,