It still points to one more 25bp rate hike this year as the Fed is still not fully confident about inflation and feels it needs to strengthen market’s expectations about the need for “higher for longer” rates.
Central Banks latest publications
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The strength of the economy and the job market will refrain the Fed from ruling out the chance of an additional rate hike this year. For now, the FOMC will skip and leave its options open.
Unlike previous moves, which were clearly telegraphed to the markets, this time around there was considerable uncertainty over the ECB’s decision on interest rates: to pause or to hike? Notably, President Christine Lagarde’s press conference fo…
We present a summary and analysis of the most relevant developments and publications in Mexico's financial regulatory landscape.
In its September decision, the Central Bank Board decided to reduce the reference rate to 7.50%, but noted that this does not imply a cycle of successive interest rate cuts. The monetary policy position, understood as the real ex-ante reference…
It is clear that after this hike the ECB is prepared for a long pause and probably the end of the hiking cycle, although further rate hikes cannot be completely ruled out as inflation could surprise to the upside and the ECB has said that it remains in a data-dependent mode.
Inflation was 0.38% m/m in August. The rise in the CPI was mainly explained by the rise in the prices of some foods (vegetables, fruits) and fuels.
The Central Bank's Board of Directors decided to keep the reference rate at 7.75% in August but gave a markedly dovish twist to the statement explaining the decision. The monetary policy stance, understood as the ex-ante real policy rate, goes …
The Governance Board did not send any signal about a possible start of a rate cut cycle in coming meetings and continued to signal its intention to keep the policy rate unchanged “at its current level for an extended period.”
Banxico should start a rate cut cycle in 4Q to avoid a further tightening of the monetary policy stance. Some hints about the roadmap for the rate cut cycle will be useful, but seem unlikely in the short term.
So far this year, despite the most aggressive interest rate hike cycle in history by the Federal Reserve (Fed), emerging currencies (with some exceptions) and the euro have strengthened significantly.
Inflation printed at 0.39% m/m in July. The advance of the CPI is mainly explained by the rise in the prices of some foods (vegetables, poultry, restaurants) and the greater tourist demand associated with the celebrations of National Holidays.