Central Bank

As if 75bp was not enough, the RBNZ came out swinging by increasing their terminal rate much higher than we anticipated.

The RBA’s November minutes lean towards 25bp hike/s with a pause along the way, with a 50bp hike likely requiring higher inflation expectations and wages.

The Bank of Mexico stuck to the script and hiked rates by the same amount as the US Federal Reserve, 75bps, to bring its overnight rate to 10%.

The RBA are set to hold their November meeting tomorrow at 14:30 AEDT and, whilst the consensus is for a 25bp hike, it doesn’t mean they won’t do a 50bp one instead.

The RBA are set to hold their November meeting tomorrow at 14:30 AEDT and, whilst the consensus is for a 25bp hike, it doesn’t mean they won’t do a 50bp one instead.

The DAX may have tracked global equities higher, but it finds itself on a key resistance level ahead of today’s ECB meeting. And that makes it a pivotal level for traders.

The DAX may have tracked global equities higher, but it finds itself on a key resistance level ahead of today’s ECB meeting. And that makes it a pivotal level for traders.

The BOJ aggressively purchased bonds at the long end of the curve and sent the 30-year yield markedly lower, although the move did not spill over the yen pairs.

The RBA delivered their sixth consecutive hike today, although at a slower pace than the consensus had pencilled in.

Business sentiment is not as pessimistic as it recently was, and RBNZ governor Orr described the central bank’s tightening cycle as ‘very mature’.

Rising yields ahead of the FOMC meeting has seen the BOJ announce bond purchases, and implied volatility has risen notably for the next 24-hours.

The SNB (Swiss National Bank) are expected to hike interest rates tomorrow, which would send their rate above zero for the first time since 2011.

The focus this morning for local markets has been on the RBA Board meeting minutes for September and for possible clues it contained as to the Board’s view around the pace of future interest rate hikes.

Quantitative easing is a monetary policy tool of central banks, which has received its fair share of criticism for causing inflation. Let’s take a look at the pros and cons of QE and how it can impact the stock market and forex market.

Next Tuesday, the RBA meets again and is widely expected to raise the cash rate. Once again, the main question will be by how much.

We’ve noticed an interesting technical lsetup on USD/SGD, although with the FOMC meeting just hours away it could be a make or break moment for the setup.

Will central banks be able to raise rates fast enough to keep higher inflation at bay, while simultaneously keeping the world out of a recession?