Central Banks latest publications
We prefer to support the argument that a neutral, prudent but accommodative monetary policy will be the main monetary policy stance in 2021, while the authorities will postpone the beginning of a real tightening cycle and “proactive deleveraging” to a later stage.
In November, the Consumer Price Index increased by 0,52%. With this outcome, inflation increased from 1,7% in October to 2,1% in year on year terms, mainly explained by supply factors.
U.S. battening down the hatches after exiting eye of the storm. Fed pause a precursor to further action? Auto sales outlook: health concerns at the wheel. Housing market conditions and outlook.
Discussions about climate change policies are gaining ground in public debate as social awareness improves, and this is increasingly reflected in specific proposals for defining economic policy.
The crisis caused by COVID-19 is showing its first impacts on the banking sector. Our analysis assesses the impact on the sector of seven factors and its trends: monetary policy, digitalization, regulation, economic growth, new entrants, competitive landscape and government support.
November 18, 2020
US | Nonbank financial intermediation, financial sector stability, and policy implications
Nonbank financial intermediation represents a large share of the U.S. financial sector. In times of crisis, it has been supported by the primary banking regulator - the Federal Reserve. In the absence of changes in oversight, this could lead to increased moral hazard and financial instability over the long run.
The Board of the Central Bank decided to maintain the monetary policy rate at 0,25% in November. The Bank renewed its commitment to maintain a strongly expansive stance for a prolonged period and revised upward its inflation outlook yet again.
The decision might not mark the end of the rate cut cycle if with falling inflation Banxico resumes it in 2021. Banxico reasons for pausing not clear in the statement.