November 12, 2019
Central Banks latest publications
A 50bp rate cut would mark the beginning of a long overdue easing cycle.
We expect ongoing easing in global uncertainties, and policy support to sustain flows into EMs, mainly those implementing ‘sound’ policies and with stable currencies. However, concerns over underlying vulnerabilities and the potential for further bouts of cross asset volatility will restrain a sharp recovery in EM inflows.
Repo Rates: Slight increase in average daily intervention to $86bn as Fed conducts small operation exercises on its desk to test its operational readiness. Fed Balance Sheet: Total assets reach $4.08tn, the highest amount since January 2019.
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.
After a two-month pause, the Board of the Central Reserve Bank of Peru (BCRP) decided to cut the monetary policy rate by 25 basis points in November, from 2,50% to 2,25%.
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.
Repo Rates: Average daily intervention holds steady at $84bn given Fed’s daily commitment to $120bn through October and no major shocks.