The Bank of England Delivered a Historic Rate Hike Despite Impending Recession
The central bank raised rated by 75 basis points, its largest move in thirty-three years, but softened its language as it expects prolonged recession
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The central bank raised rated by 75 basis points, its largest move in thirty-three years, but softened its language as it expects prolonged recession
A policy rate above neutral is, in effect, a contractionary monetary policy. Given that the Fed may only have just hit neutral, the Fed's hawkishness is understandable. Chair Powell admitted as such, saying that "the level of interest rates will...be higher than previously expected."
The US Federal Reserve delivered another 75 bps rate increase and pointed to a moderation in the pace of tightening, but ruled out a pause, sparking two-way action and volatility in markets
The Australian central bank opted again for a miniscule rate hike, despite recent inflation surge and higher 2022 projection
The week FXCM market specialists Russ and Nik discuss the u-turn in PM Liz Truss's policies. Inflation remains rampant and sticky, with core CPI surprising to the upside. The terminal rate jumps to 5%, with the following two meetings for 2022 expected to hike at 75bps each. USDJPY reaches 32 years high, as central bank policies diverge. Please listen in for the above and more.
After a tumultuous week and U-turns from the British government, the newly appointed finance minister, announced further changes to the fiscal plans
Yesterday's CPI print surprised to the upside. Headline CPI came in at 8.2% y/y against an expectation of 8.1% y/y. However, core CPI is up 6.6% from a year ago. This print matched the previous release and is the fastest rate of change since 1982.
In this week's podcast, FXCM Senior Market Specialists Russ and Nik discuss the fallout from the UK's mini-budget. The two specialists also talk about jobs data and how that impacts the Fed's monetary policy in its battle to tame inflation. In addition, the environment increases in complexity with the Q3 earnings season kicking off this week. Join our specialists as they discuss these and more.
The central bank of New Zealand maintained its hawkish stance and delivered another 50 basis points interest rates hike today, just a day after its Australian counterpart slowed its pace
The real rate uptrend remains valid, and the upward green trendline defines its momentum. In this vein, a pullback to test this momentum will be compelling, given the Fed's current aggressive monetary policy. As such, and until proven otherwise, a dip in the yield uptrend remains our preferred scenario.
Australia’s central bank raised interest rates again today, but the 0.25% move was smaller than expected and constituted a step back from the larger hikes in the previous four meeting
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