November 12, 2019
Monetary policy latest publications
A 50bp rate cut would mark the beginning of a long overdue easing cycle.
Several days ago, and for the third time this year, the Fed reduced the federal funds rate target range by 25 basis points to a range of between 1.5% and 1.75%. It is very unlikely that it will lower rates again in December.
The President of the European Central Bank (ECB) will be remembered for a number of things, and one of them is never having raised interest rates during his term, and in fact having lowered them to today's negative levels.
The debate on Central Bank Digital Currencies (CBDCs) was triggered by the emergence of cryptocurrencies like Bitcoin on the one hand, which may compete with traditional central bank money, and the trend towards the disappearance of cash in some countries on the other hand.
The outlook in Latin America in recent weeks has been marked by general elections in Argentina, Bolivia and Uruguay. This is in addition to extensive protests in Ecuador and Chile.
After eight years in office at the European Central Bank (ECB), it is time for Mario Draghi to pass the baton in eurozone monetary policy. Christine Lagarde will become the first woman to head the ECB.
China’s central bank announced the elimination of its previous benchmark lending rate as monetary policy rate. Moreover, they made a market-driven Loan Prime Rate (LPR) as the reference rate for banks to price their financial products. It signals the transformation of “dual-track” system to the new “single-track” system.
For the third time this year, the Fed lowered the target range of federal funds rate 25bp to 1.5-1.75% without significant changes to their outlook on the labor market or inflation.