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Fed Meeting Preview

Tue, Sep 18 2007, 07:07 GMT
by Marina Schiaffino

FXstreet.com


FOMCOn Tuesday night at 20:15 CET the Federal Open Market Committee (FOMC) will announce its policy rate decision. This time around, there is an unusually high degree of uncertainty over the outcome of the meeting. We expect the FOMC to lower the Fed funds rate by 25bp to 5.00% and the discount rate by 50bp to 5.25%. Moreover the FOMC will signal a cautious bias towards further easing, focusing on the downside risks to growth arising from the turmoil in financial markets. [Read full report]

Dealers are mixed ahead of the decision, and it is not clear yet what will happen even if such a rate cut is confirmed. The majority of analysts see bearish implications for the USD, while others consider that the move has already been discounted, and see little or no damage to the USD.

Check the effect that the result of the meeting will have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related News

Analysts' comments

  • Nick Raich, analyst at financial group National City:
    "The decision to cut interest rates by 25 or 50 basis points will not be nearly as important as the Fed's language. We believe market bulls will need a Fed that will show it is willing to do whatever it takes to prevent the economy from slipping into a recession." - AFP
  • Brian Wesbury, chief economist at First Trust Advisors LP:
    "We still hold out hope the Fed will do the right thing, which is not cut rates at all. Cutting rates, when they are already too low, will 'lock in' inflation, force more rate hikes later, and puts the Fed's credibility as an inflation fighter at risk." - AFP
  • Joseph LaVorgna, economist at Deutsche Bank:
    "We strongly believe that if the Fed only cuts rates by 25 basis points even with a strongly worded FOMC statement to commit to more easing if need be, there could be a significant disappointment trade in the financial markets, especially in stocks. If policymakers move too slowly now, they run the risk that more considerable damage will be inflicted on the financial markets and the real economy, and resultantly they will have to cut rates more aggressively in the long run." - AFP

Published on  Tue, Sep 18 2007, 07:07 GMT

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ECB and BoE meeting Review

Fri, Sep 7 2007, 09:34 GMT
by Marina Schiaffino

FXstreet.com


ECB and BoEAs it was expected ECB as well as BoE, have both left their interest rate unchanged at 4% and 5.75% respectively. At its post meeting speech ECB’s president Jean Claude Trichet has announced great attention in the money markets, as well as the determination to act in a "Firm and Timely Manner" to maintain inflation in levels below the 2.0% annual rate.

Check the effect that the result of the meetings is having over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.


In-Depth Analysis


Related News


Analysts' Comments

  • Juergen Stark, ECB executive board member:
    "Today I can tell you we are enhancing the monetary analysis, so the expectations of the watchers may be a disappointment." - Thomson Financial News
  • · Peter Stoneham, analyst at Thomson IFR Markets:
    "We are hearing dovish undertones from the Trichet press call." - Thomson Financial News
  • · Daragh Maher, senior forex strategist at Calyon:
    "The message up-front today was that a (BoE) rate cut would only be justified if the inflation target were likely to be undershot without one - nonetheless, the evidence for generating a view of an inflation undershoot is building." - Thomson Financial News
  • · Karen Ward, economist at HSBC:
    "The BoE is keeping its fingers crossed that all the market turmoil will all go away. They acknowledge there may be spillovers which they will monitor but at the moment they believe the impact will be limited." - Thomson Financial News

Published on  Fri, Sep 7 2007, 09:34 GMT

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ECB and BoE meeting Preview

Wed, Sep 5 2007, 14:43 GMT
by Marina Schiaffino

FXstreet.com


ECB and BoEThe ECB is still debating whether to go with a move in its current 4% interest rate or not. The Bank passed from a hawkish tone in July to a very dovish outlook as the US sub-prime market collapsed, and now back with the hawks again as they find current volatility in the Euro Zone money markets excessive. All in all, not a clear picture with respect to their decision, one of the trickiest for traders in many time.

Under a more conservative trend, analysts are quite sure that the BoE (Bank of England) will keep its interest rates on hold at a 5.75%.

Check the effect that the meetings have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.


In-Depth Analysis


Related News


Analysts' Comments

  • Lena Komileva, G7 economist at Tullet Prebon:
    "While the ECB is widely expected to leave the main refinancing rate unchanged tomorrow there is a good chance that they may cut the lending facility rate as a confidence-boosting gesture to the markets. This would be unprecedented in the ECB's history, but current market conditions call for it." - Dow Jones
  • Erik Nielsen, economist at Goldman Sachs:
    "The communication on Thursday will be tricky, but we expect Trichet to defend the last month's scrambled communication with the insistence that they never pre-committed to a hike, and to try to sound hawkish without using the 'strong vigilance' code word." - Dow Jones
  • Isabelle Job, economist at Credit Agricole:
    "Given the jittery state of things, the ECB seems likely to leave rates unchanged in September while maintaining its upside bias, which is a way of saying that once things have calmed down, a further tightening could prove necessary to quell mid-term inflationary pressures." - Dow Jones
  • James Knightley, strategist at ING Financial Markets:
    "There is still a very strong case for a rate rise, particularly with gross domestic produce growth looking set to rise by around 3% this year and food prices bouncing back." - Dow Jones

Published on  Wed, Sep 5 2007, 14:43 GMT

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Bank of Japan Meeting Review

Thu, Aug 23 2007, 14:18 GMT
by Marina Schiaffino

FXstreet.com


BoJThe Bank of Japan’s monetary policy board has decided on a 8-1 result to keep overnight rate target on hold at 0.5%. The BoJ said that it was Atsushi Mizuno who voted against the proposal by governor Toshihiko Fukui to leave the interest rate unchanged.

The post-meeting statement has been quite dovish, following a different tone to the past meetings. GBP, EUR and USD appreciated significally against the JPY.

Check the effect that the result of the meeting will have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.


In-Depth Analysis


Related News


Analysts' comments

  • Hiroshi Shiraishi, chief Japan economist for Lehman Brothers:
    "In terms of risk/reward perspective it just does not make sense for the Bank of Japan to be hiking (interest rates) now as it could be accused of fueling market instability." - MarketWatch
  • Azusa Kato, economist at BNP Paribas:
    "It's inevitable the Bank of Japan has to take a wait−and−see approach." - The Associated Press
  • Tatsuya Kawanishi, junior advisor at FXstreet.com:
    "The Bank of Japan decides to hold the ongoing interest rate (0.5%) which has been kept since June 2006. Even though the BoJ considers that the Japanese economy starts on a gradual recovery trend,it is said that in consideration for the U.S. credit crisis, the BoJ can not take a risk of sharp hike of the JPY against the USD." - FXstreet.com

Published on  Thu, Aug 23 2007, 14:18 GMT

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Bank of Japan Preview

Wed, Aug 22 2007, 13:47 GMT
by Marina Schiaffino

FXstreet.com


BoJThe Bank of Japan it is likely to keep its rates unchanged at 0.50% in tomorrow's meeting. With no important fears about inflation, and an economic growth under expectations the BoJ feels no need to hike rates.

Eyes will be put on the clues that the bank will give for its movements on the next months, and also in the analysis of the actual situation of the Yen.

Check the effect that the result of the meeting will have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related News

Analysts' comments

  • Yasuhiro Onakado, chief economist at Daiwa SB Investments:
    "The Federal Reserve said downside risks to economic growth had increased appreciably. That means risk factors, which the BOJ cites regarding the U.S. economy in its outlook report, are growing." - Reuters
  • Michael Klawitter, currency strategist at Dresdner Kleinwort:
    "I guess the markets are saying not only will the BOJ postpone the August hike but increasingly it will (hold off) in September too. That leaves the negative carry for the yen too large, following the recent correction, and too tempting for speculators to get back in. But (cross yen) rallies will be temporary and nobody will be willing to bet on any lasting upward move." - AP
  • Tony Juste, FX Advisor at FXstreet.com:
    "We should not be expecting any 'big surprise' from our friends in Japan, and less if we take into account the latest market developments. Therefore it is unlikely that a rate hike will be seen at this time, as I am not sure they like the levels where USD/JPY is curretly sitting at." - FXstreet.com

Published on  Wed, Aug 22 2007, 13:47 GMT

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Fed Meeting Review

Wed, Aug 8 2007, 07:00 GMT
by Marina Schiaffino

FXstreet.com


FOMCAs it was widely expected the Fed left its interest rates unchanged at 5.25%. Keeping focus on inflation is for the moment the biggest concern for this central bank. "Although the downside risks to growth have increased somewhat, the FOMC's predominant policy concern remains the risk that inflation will fail to moderate as expected," the FOMC said in a statement following the meeting.

After this statemet Dollar has rallied slightly against all the main currencies but it may be due to some profit taking. Interest spread still plays in favor of USD over carry trades on CHF and JPY. In the short term, jobless claims and wholesale inventories are not likely to give support to the Greenback.

On the other hand, EUR/USD is moving near the 1.37 support level seeing the daily technicals not overbought but neutral. Finally, the possible September rate hike in the ECB and the US economic weakness could make traders push the pair to the level of 1.40 in the medium term.

Check the effect that the result of the meeting is having over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.


In-Depth Analysis


Related News


Analysts' comments

  • Michael Englund, chief economist at Action Economics:
    "The Federal Reserve's newest policy statement Tuesday may have been a disappointment to the markets, which may have expected the Fed to be more flexible on inflation. But it was what Fed watchers were expecting." - MarketWatch
  • Drew Matus, economist at Lehman Bros:
    "It's actually a quite hawkish statement. The fact that they describe housing in the same way even though things have clearly gotten worse for that sector is one part of it. The second part of it is that they are clearly worried about inflation." - Reuters
  • Richard Berner, chief U.S. economist at Morgan Stanley:
    "The balance of risks is shifting, but it hasn't shifted to the point where the Fed feels it has to act, or even change its rhetoric." - Los Angeles Times
  • Avery Shenfeld, senior economist at CIBC World Markets:
    "What the statement is telling you is that the Fed doesn't believe that the economic shock is going to be that significant. If the Fed is right, that would be good for equity markets." - Financial Post

Published on  Wed, Aug 8 2007, 07:00 GMT

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Fed Meeting Preview

Tue, Aug 7 2007, 07:04 GMT
by Marina Schiaffino

FXstreet.com


FOMCUS Government is still worried about inflation, but as economic performance matches Fed’s expectations, it's not probable that a rate hike is given on this Meeting. The last hike was seen on June '06 when they hiked to the actual 5.25%.

Overall market seems to be positioning for a dove Fed statement today. In the post-Fed speech it's quite likely that Fed chairman, Ben Bernanke, changes his bias towards a more neutral statement given last month data which revised down its projections for economic growth in 2007 and 2008.

EUR/USD is near historical record highs while momentum is positive. A dovish Fed statement, pointing that inflation has declined steadily and it's approaching the 2% target , would increase the possibility for Fed to cut interest rate before year end send the pair to new historical highs. On the other hand, a more neutral statement would dissapoint analysts expectations and market might see some profit taking in this pair.

Check the effect that the result of the meeting will have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.


In-Depth Analysis


Related News


Analysts' comments

  • Steve Pearson, currency strategist at HBOS:
    "A 25 basis point cut at the end October FOMC meeting or earlier is fully discounted, with sentiment fuelled by some excited talk of an emergency Fed easing." - Thomson Financial News
  • Daniel Katzive, currency strategist at UBS:
    "By Friday the dollar had come under renewed pressure, as growing concern over spillover affects from the sub-prime market was beginning to translate into increased market willingness to price in near-term Fed easing." - Thomson Financial News
  • Derek Halpenny, senior currency economist at The Bank of Tokyo-Mitsubishi:
    "Market participants are fully aware that the Federal Reserve rarely responds with monetary easing until the labour market reveals signs of weakness." - AFP
  • John Lonski, chief economist of Moody's Investor Service:
    "The Fed could cut interest rates as early as the September 18 meeting of the FOMC." - AFP
  • Stephen Gallagher, economist at Societe Generale:
    "The FOMC is widely expected to leave rates unchanged at its meeting." - AFP

Published on  Tue, Aug 7 2007, 07:04 GMT

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ECB and BoE meeting Review

Fri, Aug 3 2007, 07:15 GMT
by Marina Schiaffino

FXstreet.com


ECB and BoEAs it was expected ECB as well as BoE, have both left their interest rate unchanged at 4% and 5.75% respectively. However, at its post meeting special speech, and although he did not use the keyword "vigilance" Jean-Claude Trichet give some clear clues that should point to the ECB raising rates on its September meeting.

Check the effect that the result of the meetings is having over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.


In-Depth Analysis


Related News


Analysts' Comments

  • Jacques Cailloux, strategist at Royal Bank of Scotland:
    "We had a probability of 85 pct of a rate increase in September; we now see it at 90 pct." - Thomson Financial News
  • Stuart Bennett, strategist at Calyon:
    "Governing Council members can now enjoy their summer holiday unpestered by journalists and return fully refreshed in time to hike the refi rate." - Thomson Financial News
  • James Knightley, strategist at ING Financial Markets:
    "For now we look for a September rate rise with the growing threat of a further move around the turn of the year." - San Diego Union Tribune
  • David Powell, currency analyst at IDEAglobal:
    "The 'strong vigilance' remark hinted at a September rate hike move instead of October. However that has been largely in line with expectations and so the euro hasn't really moved that much." - Reuters
  • Daragh Maher, senior forex strategist at Calyon:
    "(The impact on sterling) was pretty limited as the market was widely anticipating no move. Sterling was a little bit stronger against the U.S. dollar but in the context of moves we've seen in the last week or two, there's very marginal impact." - Reuters
  • Roger Bootle, advisor to Deloitte:
    "Today's decision by the Monetary Policy Committee to leave interest rates on hold at 5.75 percent does not signal that interest rates have peaked. The committee is just pausing for breath." - Reuters
  • Lee Hopley, senior economist at EEF:
    "Given some evidence emerging that the Bank may already have done its job, rates should now be left where they are until a clearer assessment can be made of the direction of the economy." - BBC News

Published on  Fri, Aug 3 2007, 07:15 GMT

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ECB and BoE meeting Preview

Thu, Aug 2 2007, 07:02 GMT
by Marina Schiaffino

FXstreet.com


ECB and BoEAfter June's hike the ECB meets this month under an almost sure decision in mind: keep its actual interest rate on hold at 4%. Many analysts forecast a possible rate hike on September.

No Trichet's speak after the meeting, added to the recent consolidation in the EUR/USD makes a hard case to forecast how the European currency will react to the meeting. If the press release delivered after the decision contains a dovish statement, which is quite improbable, it may open the way for a break down of the 1.3600 level. On the other hand, a neutral press release may leave the pair unchanged.

Following the same conservative trend, analysts are quite sure that the BoE (Bank of England) will keep its interest rates on hold at a 5.75%.

Check the effect that the meetings have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.


In-Depth Analysis


Related News


Analysts' Comments

  • Howard Archer, chief UK and European economist at Global Insight:
    "The current financial market turmoil will not deter the ECB from acting in September, although if it deepens, it would increase the possibility that the ECB could hold fire until October." - BBC News
  • Claudia Broyer, analyst at Dresdner Bank:
    "We still believe that a tightening move in September is the most likely scenario." - Euro2day
  • Tatsuya Kawanishi, junior advisor at FXstreet.com:
    "The Bank of England has steadily raised its interest rates by 0.25% 5 times since last August. The BoE is concerned about the the risk of increasing inflation. However, if the pace of inflation does not slow down, it will be seen as a strong possibility to raise the interest rate." - FXstreet.com

Published on  Thu, Aug 2 2007, 07:02 GMT

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Bank of Japan Meeting Review

Thu, Jul 12 2007, 10:57 GMT
by Marina Schiaffino

FXstreet.com


BoJThe Bank of Japan’s monetary policy board has decided on a 8-1 result to keep overnight rate target on hold at 0.5%. The BoJ said that it was Atsushi Mizuno who voted against the proposal by governor Toshihiko Fukui to leave the interest rate unchanged.

The JPY reacted positively in a first stage to the possibility of further tightening in the months ahead, but that was a mere mirage. Shortly after an initial spike up, traders joined the carry trade again and started to aggressively sell it, sending some crosses like EUR/JPY at record levels again.

Check the effect that the result of the meeting will have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related News

Analysts' comments

  • Mitsuru Sahara, senior trader at Bank of Tokyo-Mitsubishi UFJ:
    "The BoJ's decision and the vote were largely as expected by the market, including Mr Mizuno's dissenting vote." - AFP
  • Kengo Suzuki, currency strategist at Shinko Securities:
    "After seeing only one vote for lifting rates this time, the timing for next rate increase may be delayed until September or October." - Reuters

Published on  Thu, Jul 12 2007, 10:57 GMT

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Fed Meeting Review

Fri, Jun 29 2007, 06:58 GMT
by Marina Schiaffino

FXstreet.com


FOMCThe Fed has left its interest rate unchanged at 5.25%. The USD is broadly down after the news, while the other markets have remained mostly unchanged. The Federal Reserve has maintained its hawkish posture showing almost no difference to the May announcement.

According to the Fed, inflation remains high but indicators have eased a bit. Modest economic gains are expected, although the housing market continues to slump. 

Check the effect that the result of the meeting is having over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related News

Analysts' comments

  • Bill Sullivan, chief economist at JVB Financial:
    "The statement was "mildly hawkish. They don't want investors to get complacent about the inflation outlook even though we've had some good data recently." - MarketWatch
  • Tom Sowanick, chief investment officer at Clearbrook Financial LLC:
    "There's no reason to expect interest rates to move much from here." - News.com.au
  • Mark Zandi, chief economist at Moody's Economy.com:
    "The Fed won't cut rates as long as unemployment remains around 4.5 percent but there's no reason to tighten with the economy operating below potential. So there will be no change in policy in the near future." - CNNMoney.com
  • Brian Bethune, economist at Global Insight:
    "The whole statement was very much in line with market expectations and that's generally positive. The markets don't like to be surprised. I could have written this thing verbatim myself yesterday." - CNNMoney.com
  • Richard Yamarone, chief economist at Argus Research:
    "The Fed is trying to alert the markets that core inflation is back to where it likes it but headline inflation is at levels it doesn't like. The Fed realizes we don't reside in this no-food, no-gasoline world and that it appreciates how important increases in those prices are." - CNNMoney.com
  • David Kelly, economic advisor at Putnam Investments:
    "It's interesting that the Fed says inflation is still its top concern. What does inflation have to do? It is moderating as expected. I think the Fed is a little more hawkish than they need to be." - CNNMoney.com

Published on  Fri, Jun 29 2007, 06:58 GMT

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Fed Meeting Preview

Mon, Jun 25 2007, 08:19 GMT
by Marina Schiaffino

FXstreet.com


FOMCUS Government is still worried about inflation, but it's not probable that a rate hike is given on the 28th July Meeting. The last hike was seen on June '06 when they hiked to the actual 5.25%.

It's also very probable that the post meeting statement will keep its tightening bias, and speak about the recent indicators of US faster growth such as the ISM, the capital good orders or the low unemployment tax.

Check the effect that the result of the meeting will have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related News

Analysts' comments

  • George Worthington, chief Asia-Pacific economist at IFR:
    "The week’s key focus will be the FOMC’s two-day session, ending Thursday, with no policy change expected although the statement is likely to maintain an emphasis on the risks to inflation. Particularly in light of the recent rise in oil prices and continued strength in food prices." - The Financial Times
  • Madlen Read, analyst at Sioux City Journal:
    "The Fed is widely expected to keep the benchmark rate steady at 5.25 percent, as it has done since last summer, but the policy statement it releases Thursday will be parsed for clues about future moves." - Associated Press
  • Craig James, chief equities economist at CommSec:
    "At the last meeting, the FOMC said that the economy was likely to expand at a moderate pace but noted that the principal risk was that inflation may not ease as expected. These judgments are unlikely to radically change although the FOMC may be a little more upbeat about inflation in light of recent data." - CNBC
  • Joseph LaVorgna, economist at Deutsche Bank:
    "Even though we have abandoned our expectations for rate cuts from the Fed in the near-to-medium term, contrary to the inflation-hawkish language from the FOMC, we believe the risks remain skewed toward more accommodative monetary policy." - Gulf Times
  • Joseph Balestrino, analyst at Federated Investors:
    "Absent a crisis or sudden shift in data trends, we still expect the Fed to stay on hold into 2008. Investors assumed the FOMC would cut interest rates in late 2007 or early 2008. Those same investors now have begun to factor in the possibility of an actual rate hike." - Gulf Times

Published on  Mon, Jun 25 2007, 08:19 GMT

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BoE Meeting Review

Thu, Jun 7 2007, 13:29 GMT
by Marina Schiaffino

FXstreet.com


BoEAs it was mainly expected the Bank of England (BoE) has kept its interest rate unchanged at 5.50%. The bank has not given any further explanation on this decision, while the minutes of the meeting will be published on Wednesday 20 June, at 8:30 GMT.

Check the effect that the meeting has on the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related News

Analysts' comments

  • David Stubbs, senior economist at the Royal Institute of Chartered Surveyors:
    "However, while further evidence of a slowing housing market is now clear for all to see, the balance of risks to inflation remains on the upside given the overall strength of the economy. This suggests at least one further rise is still on the cards. Indeed, by not raising interest rates now the Bank risks having to push rates to 6 pct by the end of the year." - AFX News
  • Ian McCafferty, chief economic advisor at CBI:
    "By leaving rates on hold this month, the Bank has resisted rushing into a rate rise that, though widely expected, may still prove unnecessary. Despite recent data showing selling prices rising more rapidly across a number of sectors, evidence is starting to emerge that the four rate rises since August are having an impact... the recent ability of companies to push up prices is unlikely to continue." - AFX News
  • Philip Shaw, chief economist at Investec:
    "The MPC held the bank rate steady amid market nerves that policy might have been tightened today." - AFX News

Published on  Thu, Jun 7 2007, 13:29 GMT

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ECB Meeting Review

Thu, Jun 7 2007, 07:45 GMT
by Marina Schiaffino

FXstreet.com


BoJAs it was widely expected the European Central Bank has hiked by 25bp interest rate to a 4%.

At the press conference, ECB President Jean-Claude Trichet, signalled that the ECB is still very concerned about several upside risks to inflation. In a prepared statement Trichet voiced some changes compared to last month’s statement. These were both in a hawkish and a dovish direction, and do not present any significant change in ECB views. [Read full report]

Check the effect that the result of the meeting is having over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related news

Analysts' comments

  • Shaun Osborne, chief currency strategist at Scotia Capital:
    "We are getting toward the point where (interest rates) are neutral, so there's no additional impetus there for the euro to gain on the back on that." - Reuters
  • Audrey Childe-Freeman, European economist at CIBC World Markets:
    "Trichet is in close monitoring mode, liquidity is ample and more importantly he says monetary conditions remain accommodative - that confirms that there are more rate hikes in the pipeline." - BBC News
  • Marc Ostwald, strategist at Insinger de Beaufort:
    "Surprises were kept to a very bare minimum at the press conference. However, by using the term 'accommodative' to describe rates at 4.0%, rather than moderate as was the case in March, they made clear that if growth and price trends turn out as they expect, then another rate hike at the September meeting is very likely." - MarketWatch
  • Divyang Shah, global strategist at IDEAglobal.com:
    "By keeping inflation forecast for 2008 at a 2.0 pct mid-point the ECB has chosen not to send a hawkish signal." - AFX News
  • David Brown, chief european economist at Bear Stearns:
     "The key question now is whether rates go up again and how far they will go." - Dow Jones

Published on  Thu, Jun 7 2007, 07:45 GMT

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ECB and BoE meeting Preview

Mon, Jun 4 2007, 10:32 GMT
by Marina Schiaffino

FXstreet.com


ECB and BoEOn Wednesday the 6th the ECB will meet again with a clear target in mind: hiking 25bp its actual 3.75% to a 4%. As usual, the Market will be waiting for J.C. Trichet's press conference in order to get further clues of the short and mid-term moves by the Bank.

On Thursday the 7th it's the turn for the BoE (Bank of England) that it's widely expected to keep interest rates on hold at a 5.50%.

Cable will get volatile ahead and after the release, as it is not a guaranteed issue that the BoE will keep rates on hold. The Euro should not get that much of an impact in case of a rate hike, as it is widely priced in the markets already, but dealers will remain vigilant to what Mr. Trichet has to say with respect to the immediate future decisions.

Check the effect that the meetings have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related News

Analysts' Comments

  • Lena Komileva, G7 economist at Tullett Prebon:
    "Trichet is going to leave no doubt the ECB is not done yet. He will probably want to say the ECB will be fairly flexible in how they will respond to inflationary risks." - Reuters
  • Thorsten Weinelt and Marco Annuziata, analysts at UniCredit:
    "The bank (ECB) could raise rates to 4.5 percent by the end of the year, making everything from mortgages to auto loans more expensive for the more than 317 million people in the euro zone, which accounts for more than 15 percent of the world's growth." - The Associated Press
  • Ian Gunner, Head of FX Research at Mellon Foreign Exchange:
    "EUR-USD managed to stabilise fairly quickly after the sell-off seen following Friday’s ISM release, with the prospect of Wednesday’s ECB meeting the most likely supporting factor." - FXstreet.com
  • Roger Bootle, economic adviser at Deloitte:
    "No-one should be fooled by the fall in (UK's) inflation that will happen over the next few months; the issue is what will happen to inflation next year and beyond." - AFX News

Published on  Mon, Jun 4 2007, 10:32 GMT

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ECB and BoE meeting Review

Thu, May 10 2007, 14:22 GMT
by Marina Schiaffino

FXstreet.com


ECB and BoEThe BoE has finally decided to hike its interest rate on 25bp until 5.50%. The most probable course of action will see the BoE hiking another 25bp next month.

On the other hand the ECB has left its interest rate unchanged at 3.50%. However, at the post meeting press conference, Jean-Claude Trichet indicated that "strong vigilance" on inflation risks in the Euro Zone was required until the next meeting. The ECB is also seen by many analysts raising the Euro-zone target rate to the 4% level.

From the FX price action point of view the USD got initial support from the two Central Bank decisions, but moves remain suspicious as the events were not that bullish for the Dollar, rather the opposite.

Check the effect that the result of the meetings is having over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table. You can also express your opinion in the Forex Forum: The Central Banks Week.

In-Depth Analysis

Related News

Analysts' Comments

  • Tom Levinson, currency strategist at ING:
    "The BoE statement hints towards a rate hike." - Reuters
  • Roger Bootle, analyst at Deloitte:
    "Today's interest rate hike was not a knee-jerk reaction to the rise in CPI inflation to 3.1% in March. Instead, it is a response to mounting concerns over the outlook for medium-term price pressures. This is why interest rates are likely to rise further, even though CPI inflation is set to fall back to the 2% target." - The Guardian
  • Howard Archer, chief economist at Global Insight:
    "We do not think the Bank of England’s job is done yet. Unless data over the next few weeks shows a clear easing in price pressures and softer growth, we suspect that a majority of MPC members will want to take out some further insurance against the longer-term inflation risks." - Financial Times
  • David Kern, BCC's economic adviser:
    "The three interest rate increases implemented since August 2006 are already having harmful effects on British business. Today's fourth increase in rates will inevitably exacerbate the pain and heighten future risks." - AFX News
  • Holger Schmieding, chief economist for Europe at Bank of America:
    "If the euro-zone economy gains further momentum in late 2007 and early 2008 ... the ECB will probably raise rates further to 4.5 percent by mid-2008." - Associated Press

Published on  Thu, May 10 2007, 14:22 GMT

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Fed Meeting Review

Thu, May 10 2007, 08:11 GMT
by Marina Schiaffino

FXstreet.com


FOMCThe Fed has left interest rates unchanged at 5.25% as it was widely expected.

The FOMC Policy statement came in as expected with no change to the rates: Inflation remained the dominate concern in the wording with notations on elevated core inflation, moderately expanding economy and inflationary pressure due to heightened resource use.

This data should keep the dollar propped through the balance of the day, but how far it goes and how long it persists is the question: Initial reaction to the data is often severe but the release also displays worse than normal follow through making this a relatively tricky news event to trade for both the intraday trader and the swing trader. Read full report.

Check the effect that the result of the meeting is having over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related News

Analysts' comments

  • Jeff Hall, chief economist at Thomson IFR Markets:
    "There's nothing remarkable in the statement and it continues to throw a bone to both the doves and the hawks." - AFX News
  • Alan Ruskin, chief international strategist at RBS Greenwich Capital:
    "While the statement is hardly a surprise, merely getting past the FOMC date removes a minor element of uncertainty and frees the market to even more actively embrace risk." - Financial Times
  • Tim Mazanec, director of foreign exchange for Investors Bank and Trust:
    "The statement was the same as what the market was expecting. [Fed officials] remained concerned about the elevated level of inflation. Consequently, the dollar has made a knee-jerk reaction" to trade a bit stronger." - MarketWatch
  • Gary Thayer, chief economist with A.G. Edwards and Sons:
    "They're (Fed) basically saying that the economy has not weakened enough to reduce that inflation risk." - Reuters
  • David Watt, economist at BMO Capital Markets:
    "The dollar edged up against the euro because the Fed didn't indicate it is ready to cut rates any time soon. They keep pushing that cut further and further away in the year." - Reuters
  • Joseph LaVorgna, economist at Deutsche Bank:
    "The tone of the statement could again move incrementally in the neutral direction in light of recent softness in economic data, especially the tepid 1.3% annual growth rate in the first quarter." - Dow Jones

Published on  Thu, May 10 2007, 08:11 GMT

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Fed Meeting Preview

Mon, May 7 2007, 15:06 GMT
by Marina Schiaffino

FXstreet.com


FOMCUS Government is still worried about inflation, but it's not probable that a rate hike is given on the 9th May's Meeting. The last hike was seen on June '06 when they hiked to the actual 5.25%.

Economic growth has slowed down noticeably in the past months but it is not strong enough yet to put pressure on the Fed to cut rates.

Check the effect that the result of the meeting will have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table. You can also tell us what do you think the Fed will do on our Forum Poll: The Central Banks Week.

In-Depth Analysis

Related News

Analysts' comments

  • Lee More, VP at ForexYard:
    "If the Fed continues to talk about the weakness of the economy, rather than the risk on the inflation side, and will come with more cautious towards the economy, that act will be seen as more dovish and then the dollar will likely weaken. The Fed's tone will have to be very dovish to stop, what may turn out to be, the beginning of the long overdue dollar reversal. As such, we may very well see the dollar touching the 1.33 level against the EUR in the near future." - ForexYard
  • Korman Tam, currency strategist at Forexnews.com:
    "The FOMC will announce the results of its policy-setting meeting at 2:15 PM New York time. The overwhelming consensus view, including our own, is for the Fed to stand pat at 5.25% and issue a statement largely in line with the March policy statement. The recent slate of economic data since the previous meeting has been mixed, as GDP, manufacturing, housing and jobs have slowed while inflation continues to hover near its highs – warranting the Fed to maintain its neutral stance with caution towards risks to inflation." - Forexnews.com
  • Hans Nilsson, FX strategist at CMS Forex:
    "Trading mixed on Tuesday, the dollar was lower against the yen but higher against the euro ahead of three central bank meetings. The Federal Reserve is expected to hold its benchmark interest rate at 5.25% after its meeting on Wednesday. Investors are waiting to see if the Fed will change the outlook for the US economy and threat of inflation. We do not expect any big changes in the Fed statement." - CMS Forex
  • David Brown, chief european economist at Bear Stearns:
    "The key for markets should be the tenor of the accompanying statement and whether the Fed keeps its tightening bias intact -- especially in the wake of the softer than expected April payrolls and March PCE core deflator." - AFX News

Published on  Mon, May 7 2007, 15:06 GMT

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ECB Meeting Review

Thu, Apr 12 2007, 14:27 GMT
by Marina Schiaffino

FXstreet.com


BoJAs it was widely expected the European Central Bank has kept its interest rate on hold at its actual 3.75%. The markets have reacted after JC Trichet press conference, where Mr. Trichet has left out the word "vigilance" signaling the bank's stance on inflation observances, his stance on inflation remains hawkish as he said the bank will "very closely monitor" prices developments and will act in a "firm and timely manner." Finally the president of the ECB stated that "rates moderate" while "policy stays on accommodative side."

The Euro has initially taken this as bad news but a quick reaction has sent it up again until 1.35. The Euro Futures are pricing in an 80% probabilities of a rate hike in June.

Check the effect that the result of the meeting is having over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related news

Analysts' comments

  • Aurelio Maccario, economist at Unicredit:
    "By resorting to the 'monitor very closely' reference, Trichet clarified that the next rate hike is going to be delivered in June rather than May." - Reuters
  • Boris Schlossberg, currency strategist at DailyFX.com:
    "With the euro at 160 or higher against the yen and the BOJ having no intention of raising rates until well after the summer elections, the only way the Europeans can get the euro-yen rate to come down is by delaying their own rate hikes to blunt that carry-trade demand that has been insatiable." - FXCM
  • David Jones, Chief economist at DMJ Advisors:
    "There's little expectation that we'll see a rate hike come through today, but consensus is building that another quarter point will be added in May or June." - IHT
  • Geoff Kendrick, currency strategist at Westpac:
    "The market is comfortable with the consensus that there will be a rate hike in June. If Trichet uses the word 'vigilant' implying there will be a speeding up in (monetary) tightening the euro could be up massively. But I suspect it will not be used this afternoon." - Reuters
  • Tim Clayton, economist at Investica:
    "If Trichet uses the term ‘strong vigilance’, this would hint at a May rate increase which would tend to strengthen the Euro. A firm, but more measured stance looks likely which will limit the potential for strong Euro buying given that a June increase is priced in with markets also discounting an increase to at least 4.25% this year. Underlying Euro sentiment will still remain firm given confidence in the underlying economy." - Investica

Published on  Thu, Apr 12 2007, 14:27 GMT

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ECB Meeting Preview

Wed, Apr 11 2007, 08:19 GMT
by Marina Schiaffino

FXstreet.com



ECBIt's expected that the European Central Bank will keep rates on hold at its actual 3.75%. On the post meeting press conference J.C. Trichet will give hints on the next movement of the Bank, probably pointing to a possible rate hike in the upcoming months. However, opinion is divided on what ECB will do beyond this month.

Check the effect that the result of the meeting will have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table. You can also vote in our Forum Poll: What will be Trichet's decision?

In-Depth Analysis

Related news

Analysts' comments

  • Lee More, VP at ForexYard:
    "Today's Interest rate decision is expected to leave rates unchanged at 3.75% however even more important is the speech of ECB President Trichet, who is expected to support a continuation of the hawkish behavior in the Euro- Zone and a further rise in the EUR interest rates in the near future." - ForexYard
  • Boris Schlossberg, senior currency strategist at FXCM:
    "The euro rallied against all of the majors in early Asian session as traders bet heavily that the ECB will back up its hawkish rhetoric by signaling a rate increase in May. Dealers will be glued to the broadcast of the ECB press conference at 12:30 GMT today looking for the mention of the word 'vigilance' which has become ECB chief Jean Claude Trichet’s favorite catchphrase to prepare the market for an upcoming change in monetary policy." - FXCM
  • Tony Morriss, senior currency strategist at ANZ Investment Bank:
    "The focus now has switched to Europe and the ECB. No one is really expecting the ECB to raise rates tonight. What the market is really looking for is whether the ECB is watching inflation data with `strong vigilance' and that sets the tone for a rate rise in the coming months." - Herald Sun
  • Howard Archer, chief economist at Global Insight:
    "Any mention by the ECB of a need for strong vigilance to ensure price stability over the medium term would strongly point to a May interest rate hike." - AP

Published on  Wed, Apr 11 2007, 08:19 GMT

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BoE Meeting Review

Thu, Apr 5 2007, 15:17 GMT
by Marina Schiaffino

FXstreet.com


BoEAs it was widely expected the Bank of England (BoE) has kept its interest rate unchanged at 5.25%. The bank has not given any further explanation on this decision, while the minutes of the meeting will be published on April, 18 at 8:30 GMT.

Check the effect that the meeting has on the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related News

Analysts' comments

  • Tony Juste, FX Advisor at FXstreet.com:
    "After the BoE, Cable falls to 1.9680 (50% retracement of the last upleg, which is holding at the moment), and GBP/JPY falls to 233.70. market shows disappointment as it was well positioned on the hike side this time." - The Advisor Blog
  • Roger Bootle, advisor to Deloitte:
    "Today's decision by the Monetary Policy Committee to leave interest rates unchanged at 5.25 percent is a short stay of execution as it is extremely likely that interest rates will be raised to 5.5 percent next month. And interest rates may have to rise further thereafter." - Reuters
  • Ashraf Laidi, Chief FX Analyst at CMC Markets NY:
    "Sterling dropped lower on the decision, before stabilizing around the 1.9720s. We noted yesterday that the BoE’s Monetary Policy Committee’s inflation preoccupation with inflation was starting to recede, driven partly by expectations of receding price pressures in the medium term." - FXstreet.com
  • Howard Archer, economist at Global Insight:
    "The decision for unchanged interest rates today may well have followed a very tight vote and we strongly suspect that this will mark only a temporary reprieve." - AFP

Published on  Thu, Apr 5 2007, 15:17 GMT

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BoE Meeting Preview

Wed, Apr 4 2007, 14:58 GMT
by Marina Schiaffino

FXstreet.com


BoEThe Bank of England is in everyone's mouth as its decision is seen key for the short term future of the GBP. The majority of the analysts surveyed consider that the Bank will rise interest rates by 25bp its actual 5.25% to 5.50%, overtaking the benchmark rate in the US for the first time in two years.

Inflation woes, solid growth and consumer demand are the keys in which this decision should be based, analysts agree on. However, the impications of a further tightening policy with the housing market at record highs and Account&Trade Deficits on the rise, could not be that good for the economy in the UK region.

Check the effect that the meeting will have on the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related News

Analysts' comments

  • Geraldine Concagh, economist at AIB Group Treasury:
    "Sterling has been relatively strong as the market is speculating that we could get a hike tomorrow. If we don't get a rate hike there could be a reversal of the pre-meeting gains, but the market is still discounting for a tightening at some point." - Reuters
  • George Buckley, economist at Deutsche Bank:
    "A hike can be justified by higher inflation measures across the board, generally upbeat activity since the January rate rise, the continued strength in the euro area economy, robust domestic demand, high money supply growth and rising household borrowing." - AFX News

Published on  Wed, Apr 4 2007, 14:58 GMT

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Fed Meeting Review

Thu, Mar 22 2007, 10:59 GMT
by Marina Schiaffino

FXstreet.com


Fed Meeting Review

FOMCThe Fed has left interest rates unchanged at 5.25%; and the Dollar is currently coming under pressure as the Fed's retoric looks to be more on the dovish side this time, according to the majority of analysts. On the minutes there can be read that its "predominant policy concern remains the risk that inflation will fail to moderate as expected."

Check the effect that the result of the meeting is having over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related News

Analysts' comments

  • Quincy Krosby, chief investment strategist at The Hartford:
    "While it did not provide the dovish statement that perhaps the equity market is craving, I think it did a bit to assuage the equity market‘s concerns that the Fed understands there is a possibility that the drag on the consumer could bring GDP down below where they expect." - AP
  • Ian Shepherdson, chief US economist at High Frequency Economics:
    "This is a grudging removal of the tightening bias." - MarketWatch
  • David Wyss, chief economist at Standard & Poor's:
    "The Fed is caught right now. The inflation numbers are looking worse, but on the other hand, the economy is looking softer." - The Associated Pres
  • David Jones, chief economist at DMJ Advisors:
    "This is a less favorable inflation environment and a less favorable economic environment, they have got to let the dust settle on this very mixed picture before they do anything." - AFX News
  • Lynn Reaser, chief economist at Bank of America's Investment Strategies Group:
    "The needle has shifted a little more to the center. I think they are more open to easing rates than they would have been several months back. They are moving away from the notion there could only be a rate increase." - The Associated Press

Published on  Thu, Mar 22 2007, 10:59 GMT

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Bank of Japan Meeting Review

Tue, Mar 20 2007, 09:28 GMT
by Marina Schiaffino

FXstreet.com


BoJ Meeting Review

BoJThe Bank of Japan (BoJ) left its interest rates unchanged at 0.50%, helping a Yen sold-off (especially against the USD), and again keeping a weak tone across the board.

Tony Juste, FX Advisor at FXstreet.com, said that "technically speaking this comes as a result of the trendline magnet and I would not consider it anything exceptional." You can view the whole article at The Advisor Blog: Bank of Japan keeps it low.

Check the effect that the result of the meeting is having over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table. Review the results of the poll in our Forex Forum: BoJ Policy Meeting (March 20, 2007).

In-Depth Analysis

Related News

Analysts' comments

  • Tetsufumi Yamakawa, chief economist at Goldman Sachs:
    "The BoJ needs to ascertain first if growth in consumer spending can be sustained with a healthy rise in wages, and if consumer prices can rise steadily before it explores chances for another rate hike." - AFX News
  • Junichi Makino, senior economist at Daiwa Institute of Research:
    "The inability of Japanese companies to lift workers' wages despite strong profits may restrain growth in consumer spending and consequently cause the economy to slip into a soft patch in the near term." - AFX News
  • Lee More, VP at ForexYard:
    "Yesterday, mixed trading, the dollar was higher against the JPY and the CHF, little changed against the EUR but lower against most high yielding currencies that benefited from the renewed interest in carry trades. The BOJ decided to leave rates on hold at 0.5% causing the JPY to decrease in value." - ForexYard
  • Rikke Ledager, analyst at Jyske Bank:
    "As expected Bank of Japan decided to hold the benchmark rate steady at 0.50% this morning. This decision barely made the JPY move at all. In the accompanying monthly report BoJ maintained its outlook with the economy expanding moderately. Right now it seems unlikely that the BoJ move the rate in the near future. The consumer prices is still moving around zero in the near term but in the long run CPI will remain in an upward trend according to BoJ." - Jyske Bank

Published on  Tue, Mar 20 2007, 09:28 GMT

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Fed Meeting Preview

Mon, Mar 19 2007, 15:10 GMT
by Marina Schiaffino

FXstreet.com


Fed Meeting Preview

FOMCUS Government is still worried about inflation, but it's not probable that a rate hike is given on the 21st March's Meeting. The last hike was seen on June '06 when they hiked to the actual 5.25%.

Check the effect that the result of the meeting will have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related News

Analysts' comments

  • Ian Gunner, head of FX research at Mellon Foreign Exchange:
    "A dovish statement would be USD-negative on the face of it, but more so against the euro than the yen. Such Fed dovishness would be comforting for equities and emerging markets and could offer some support for the weak JPY argument." - Reuters
  • Hideaki Inoue, chief manager of forex trading at Mitsubishi UFJ Trust and Banking Corp:
    "Depending on how the Fed words its description of the state of the economy, more position adjustments to sell the dollar may emerge." - Reuters
  • Besa Deda, currency strategist at Commonwealth Bank:
    "In the previous statement on Jan. 31, they (Fed) still judged that some inflation risks remained and they suggested there were some tentative signs of stabilisation in the housing market. It will be really those two sentences that will be closely watched, particularly any remarks on the housing market." - Ninemsn
  • Korman Tam, currency strategist at Forexnews.com:
    "The Fed is widely expected to leave monetary policy unchanged this week when it announces its decision on Wednesday, holding rates steady at 5.25%. The subsequent Fed statement will be analyzed for the Board’s sentiment of the housing market, specifically its thoughts on risk stemming from subprime lending. Further, the FOMC’s outlook for inflation and economic growth will provide clues on the timing of any interest rate changes over the coming months. We continue to maintain the Fed’s next decision will be a reduction in its benchmark-lending rate, materializing in Q4." - Forexnews.com

Published on  Mon, Mar 19 2007, 15:10 GMT

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Bank of Japan Preview

Mon, Mar 19 2007, 11:20 GMT
by Marina Schiaffino

FXstreet.com


BoJ Meeting Preview

BoJThe Bank of Japan will, almost for sure, keep its rates unchanged at 0.50% on its upcoming meeting. With no important fears about inflation, and an economic growth under expectations the BoJ feels no need to hike rates.

Eyes will be put on the clues that the bank will give for its movements on the next months, and also in the analysis of the actual Japanese economic situation.

In January '07, the central bank raised the overnight call rate target for second time in six years, amid signs that the economy is on the mend and deflation is history.

Check the effect that the result of the meeting will have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related News

Analysts' comments

  • Derek Halpenny, senior currency economist at The Bank of Tokyo-Mitsubishi:
    "Today the focus seems to be back on the yen being weaker against the dollar and on the crosses. The fact that China raised rates, plus the Asian and European equity makrets being up has reinforced the idea that risk appetite is stronger." - Reuters
  • Steven Saywell, currency strategist at Citigroup:
    "Riskier assets performing better -- the Nikkei was up overnight while the Aussie and kiwi are coming back nicely. The focus is on the Fed and U.S. housing data, but also on the BOJ. There is strong chance the BOJ stays bearish and this is keeping the yen under pressure." - Reuters
  • Masuhisa Kobayashi, chief JGB strategist at Barclays Capital:
    "We expect a unanimous decision to leave rates unchanged." - AFX News
  • Korman Tam, currency strategist at Forexnews.com:
    "The yen sharply reversed course, relinquishing any benefits stemming from China’s interest rate hike over the weekend. Tokyo traders quickly dumped the yen once they returned to their desks, sending it just shy of 228 against the sterling and 156.29 versus the euro. The key highlight this week will be the Bank of Japan’s policy announcement this week. Although the BoJ is not seen tightening policy, traders will closely analyze any comments from Governor Fukui for any signals of future policy changes." - Forexnews.com

Published on  Mon, Mar 19 2007, 11:20 GMT

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ECB and BoE meeting Review

Thu, Mar 8 2007, 15:33 GMT
by Marina Schiaffino

FXstreet.com


ECB and BoE meeting review

ECB and BoEThe markets have taken both decision favourable to the USD, as the BoE did not move in interest rates this time, leaving its interest rate level unchanged at 5.25% while the ECB, although it did a widely expected 25 bp rate hike until 3.75%, pointed out that the posibility for a pause from here is likely.

Check the effect that the result of the meetings will have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table. You can also express your opinion in our Forex Forum polls: BoE leaves rates unchanged at 5.25% as expected and ECB raises rates to 3.75% as expected.

ECB

After Trichet's comments, "interest rates are not anymore low, but moderate" Euro sold off from 1.3170 to 1.3120. It seems that Markets have undersood that the ECB will not hike interest rates again in the near horitzon.

In-Depth Analysis

Related News
Analysts' Comments
  • David Brown, chief european economist at Bear Stearns:
    "Judging by Trichet's latest intimations the tightening bias remains intact and ECB rates should be heading to 4.0% as the next policy stop. Timing is the issue now."
  • Holger Schmieding, economist at Bank of America:
    "Had Trichet not mentioned accommodative the market would have interpreted it as a pause and taken the euro lower, but he managed to modify it slightly...suggesting further ECB rate hike are coming, but that they might be fewer and later than previously thought. This leaves the ultimate outcome for the euro somewhat in doubt, and profit-taking after the two day run-up remains likely."

BoE 

It seems that the hiking period is over for the moment, and that the doves have win over the hawks for this meeting. Sterling has not received this news pretty wel and has fallen from 1.9340 to 1.9270.

In-Depth Analysis


Related News


Analysts' Comments

  • David Brown, chief european economist at Bear Stearns:
    "It looks like the 'wait and see' camp in the BoE has prevailed for the time being, although a rate tightening bias is still implied. Higher rates should come through in the next two months, with the risks on sooner rather than later."
  • Roger Bootle, economic adviser at Deloitte:
    "The MPC's decision to leave interest rates unchanged at 5.25 pct this month represents only a short reprieve. Rates are still likely to rise again, perhaps as soon as next month, and there remains a chance that they will eventually have to rise above 5.5 pct."

Published on  Thu, Mar 8 2007, 15:33 GMT

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ECB and BoE meeting preview

Wed, Mar 7 2007, 14:15 GMT
by Marina Schiaffino

FXstreet.com


ECB and BoE meeting preview

ECB and BoEThe upcoming meetings of the two main Central Banks from the old Europe can be read under two very different approaches.

Check the effect that the result of the meetings will have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table. You can also express your opinion in our FOREX FORUM polls: What will BoE do with interest rates? and What will be Trichet's decision?.

ECB

On the one hand the ECB (European Central Bank) will probably hike interest rates 25bp to 3.75%, trying to contain inflation fears. The Market will be waiting for J.C. Trichet's press conference in order to get futher clues of the short and mid-term moves by the Bank.

In-Depth Analysis

Related News
 Analysts' Comments
  • Jonathan Loynes, analyst at Capital Economics:
    "Last month's pledge to exercise strong vigilance should be a cast-iron guarantee of a 25 basis point rise in interest rates to 3.75 pct at this meeting." - AFX News
  • Howard Archer, analyst at Global Insight:
    "Confirmation of the strength of the euro zone economy in the fourth quarter of 2006, and overall evidence that growth is holding up well so far in 2007 will reinforce the ECB's belief that monetary policy should no longer be accommodative" - Reuters
  • Michael Schubert, strategist at Commerzbank AG:
    "We expect the ECB to leave the door open for hiking rates further, without dropping concrete hints when and by how much rates will be changed." - AFX News

BoE

On the other hand, the BoE (Bank of England) it's widely expected to keep interest rates on hold at a 5.25%. However, after the last MPC Minutes, the Britts can always surprise the Markets. Almost as a premonition, the IMF has increased their pressure over the BoE in order to make them hike interest rates. Review all the information about this news at The Advisor Blog: IMF calls the BoE to hike rates!

In-Depth Analysis

Related News

Analysts' Comments

  • Andrew Smith, chief economist at KPMG:
    "February's Inflation Report was a clear statement of intent to raise rates again." - AFX News
  • Philip Shaw, analyst at Investec:
    "It's very likely that rates will remain at the current level. There's a question over whether the recent state of market volatility has a material impact upon the bank's decision making," - London Stock Exchange
  • Ian Kernohan, economist at Royal London Asset Management:
    "With continued turmoil in global equity markets, the MPC are unlikely to raise rates again this week and I still expect a cut in rates by year-end." - AFX News

Published on  Wed, Mar 7 2007, 14:15 GMT

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Bank of Japan Review

Wed, Feb 21 2007, 09:09 GMT
by Marina Schiaffino

FXstreet.com


BoJ Meeting Review

BoJThe Bank of Japan (BoJ) hiked interest rates by 25bp to 0.50%, a movement that afected the markets that sold the Yen aggressively, hitting a low this morning of €158.70, ie, very close to current highs.

Technical indicators and patterns are failing to strive any upmove in the Yen against the Euro. Tony Juste, FX Advisor at FXstreet.com points in his Advisor Blog that "BoJ members did a slight move, to keep the government 'happy' and the market 'disappointed' so the current wave of Yen weakness could be held longer."

Check the effect that the result of the meeting is having over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related News

Analysts' comments

  • Masaaki Kanno, chief economist at JP Morgan:
    "This is an indirect warning from the BoJ: 'Don't expect a weak yen forever'" - The Financial Times
  • Koji Omi, Japanese finance minister:
    "I understand that the BoJ reached its conclusion after a thorough examination and discussion. I'd like to respect that decision." - The Financial Times

Published on  Wed, Feb 21 2007, 09:09 GMT

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Bank of Japan Preview

Mon, Feb 19 2007, 08:15 GMT
by Marina Schiaffino

FXstreet.com


BoJ Meeting Preview

BoJIn a realtively calm week, Wednesday dominates the action, with Bank of Japan's interest rate decision coming out during Asian trading hours. Is the only remarkable news coming out from the country of the rising sun during the week, but quite a news indeed.

Probably altogether with the US CPI data, markets will move a bit more crazyly after BoJ's interest rate decision.

Check the effect that the result of the meeting will have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related News

Analysts' comments

  • Masashi Kurabe, senior manager at Bank of Tokyo-Mitsubishi UFJ:
    "It could be even difficult for the dollar to fall below 119.00 yen in the case of a rate hike. Even if the greenback goes below that level, it would soon bounce back above the 119 yen mark." - IHT
  • Bilal Hafeez, foreign exchange strategist at Deutsche Bank:
    "Most people are expecting even if the BOJ was to hike, they are looking to sell the yen on the rally. All the BOJ meeting will do is that it will affect the timing to sell the yen. Nobody is looking to buy the yen. Carry will still be in favor. People are looking beyond the BOJ rate decision." - Reuters
  • Russell Bloom, economist at Thomson IFR Markets:
    "Good two-way interest is noted around the 120.00 (yen per dollar level)." - AFX News
  • Masafumi Yamamoto, currency strategist at Nikko Citigroup:
    "If the BOJ hikes, the yen can strengthen temporarily but it won't be long-lasting." - Reuters
  • Richard Grace, senior currency strategist at Commonwealth Bank:
    "Interest rate differentials are not favoring the yen." - AFX News
  • Tohru Sasaki, chief forex strategist at JPMorgan Chase:
    "A BOJ rate hike is likely to give the yen a boost, though the yen may soon start drift lower." - Reuters
  • David Brown, chief european economist at Bear Stearns:
    "There's been very little from Japanese policymakers to suggest that the Bank has closed in on a decision yet. We lean to the view that rates will rise as we think that the Bank has looked for an excuse to hike" and the GDP data "could just provide the Bank what it needs to fend off political pressure." - Dow Jones
  • Yasuo Yabe, director of sales at Meiwa Securities:
    "If the BOJ raises interest rates backed by the strong GDP data, market participants would likely take the action as a healthy move." - Reuters
  • Richard Grace, senior currency strategist at Commonwealth Bank:
    "The key focus now will be on the yen until next Wednesday's decision by the BoJ on whether to hike its overnight discount rate by 25 basis points to 0.50 pct, or not. That said (even if the BoJ moves) we're only looking at a hike to half a percentage point if it happens." - AFX News

Published on  Mon, Feb 19 2007, 08:15 GMT

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Ben Bernanke Testifies

Thu, Feb 15 2007, 13:02 GMT
by Marina Schiaffino

FXstreet.com


Ben Bernanke Testifies

G7The first wave of testimonies ended and Markets await for the upcoming declarations of Fed's Chairman Ben Bernanke on Monetary Policy. After the declarations before the U.S. Senate on the state of economy, now traders turn their eyes to what he has to say on interest rate before House Panel on Monetary Policy .

Follow at real time all of Bernanke's declarations at Tony Juste's Blog: The Advisor's Blog.

In-Depth Analysis

Related News

Analysts' Comments

  • Michael Carey, chief economist North America at Calyon
    "Market participants were expecting a more hawkish tone to the Chairman's comments, given some recent speeches by Fed officials, but his testimony was essentially balanced." - AFX News
  • John Clarke, analyst at ODL Securities
    "The dollar fell sharply against all the majors as Fed Chairman Ben Bernanke told Congress that inflationary pressures had 'abated somewhat' whilst growth was returning to a more sustainable pace." - ODL Securities
  • Rikke Ledager, analyst at Jyske Bank
    "Bernanke's testimony to Congress yesterday was more dovish than expected. Bernanke said that while the conditions for growth are still favourable, there are signs that inflation pressures continue to ease and added that though there have been signs of stabilization in the housing market there are still risks that the correction in the housing market could be greater than expected and thereby affect consumer spending." - Jyske Bank
  • Korman Tam, currency strategist at Forexnews.com
    "The dollar continues to trade near its lows versus the euro and sterling following yesterday’s more dovish than anticipated testimony from Fed Chairman Bernanke. In the session ahead, traders will continue to digest additional data to assess the US economy – with both manufacturing and housing reports slated for release." - Forexnews.com
  • Cornelius Luca, economist at Global Forex Trading Ltd
    "The dollar fell across the board again on Wednesday after Federal Reserve Chairman Bernanke said inflation pressures were starting to subside. More weakness is likely, but the downside looks limited." - Global Forex Trading Ltd

Published on  Thu, Feb 15 2007, 13:02 GMT

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ECB and BoE meeting Review

Fri, Feb 9 2007, 07:40 GMT
by Marina Schiaffino

FXstreet.com


ECB and BoE meeting Review

ECB and BoEAs broadly expected ECB as well as the BoE, have both left their interest rate unchanged at 3.50% and 5.25% respectively. However, at the post meeting press conference, Jean-Claude Trichet, indicated that the ECB would raise rates on its March 8th meeting.

Check the effect that the result of the meetings is having over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table. You can also express your opinion in the FOREX FORUM polls: ECB leaves rates unchanged as expected and BoE leaves rates at 5.25%

In-Depth Analysis

Related News

Analysts' Comments

  • Ian McCafferty, chief economic adviser at CBI:
    "The Bank has decided that last month's surprise increase is enough for now and needs to assess the impact on inflation and the economy before deciding the next move. However, the economy is still growing rapidly and concerns remain about more ingrained inflation, with firms putting up prices in the face of a profit squeeze and a far from certain outcome in the current pay round. So, it is too early to say if interest rates have peaked." - AFX News
  • Kevin Hawkins, BRC Director General:
    "This is a sensible decision. It will give the retail sector some much needed breathing space after the shock of last month's hike. The impact of three increases in seven months has not yet been fully felt and a further hit to consumer confidence would have come at a significant price." - AFX News

Published on  Fri, Feb 9 2007, 07:40 GMT

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ECB and BoE meeting preview

Mon, Feb 5 2007, 11:33 GMT
by Marina Schiaffino

FXstreet.com


ECB and BoE meeting preview

ECB and BoEMarket consensus is almost unanimous about the outcome of the two main European banks, the ECB and the BoE. Both of them will probably keep their respective interest rates unchanged at 3.50% (the ECB) and 5.25% (the BoE). The economic conditions in both areas have deteriorated slightly and more borrowing pressure would not help sustain the current economic cycle.

Anyway is quite unlikely that, as the most hawkish analysts said, we see both of the banks hiking its interest rates until a 4% in the ECB and a 6% in the BoE, not even at the end of the year.

Check the effect that the result of the meetings will have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table. You can also express your opinion in the FOREX FORUM polls: What will Trichet do with interest rates? and What will BoE do with interest rates?

In-Depth Analysis

Related News

Analysts' Comments

  • Tony Juste, FX Advisor at FXstreet.com:
    "I am not expecting any of the two central banks surprising us with any interest rate move this time. A probable rate hike in the Euro-zone will be seen throughout this year, but I am not betting in seeing 4% target rate at the end of 2007. Similarly, those hawks calling for a 6% target rate in UK don't think they will see their expectations being fulfilled." - FXstreet.com
  • Stuart Bennett, strategist at Calyon:
    "A March rate hike has already been priced in by the market. Consequently, the risks for the euro as we head toward the meeting are asymmetric." - AFX News
  • Jonathan Cavenagh, economist at Westpac:
    "I think Trichet will keep his cards close to his chest with regard to possible rate hikes following March." - AFX News
  • Matthew Sharratt, economist at Bank of America:
    "With the market only pricing in a 25 percent risk of a February move, the Monetary Policy Committee will probably be unwilling to shock the markets over two consecutive months." - Reuters
  • Martin Weale, research director at NIESR:
    "While there is always a tendency to wait to see what the effects of the recent increases have been, the main route by which monetary policy works is through its influence on expectations. For this reason and bearing in mind the recent pattern of pay settlements, we think that the BoE should err on the side of caution and raise the interest rate again this month." - AFX News
  • Marco Annunziata, chief economist at UniCredit bank:
    "We have left a stage in the cycle where central banks were the white knights coming to the rescue of the global economy, saving us from financial shocks and acts of terror." - Reuters
  • Mitul Kotecha, head of global foreign exchange research at Calyon:
    "Trichet is set to reintroduce the words 'strongly vigilant' with regard to inflation risks, a precursor to an imminent rate hike." - AFX News
  • Michael Klawitter, currency strategist at Dresdner Kleinwort:
    "While the dollar's deteriorating technical picture leaves some upside risks in eur/usd, we doubt that a lasting break above 1.30 is likely ahead of tomorrow's ECB meeting." - AFX News
  • Aurelio Maccario, economist at Unicredit MIB:
    "Even though markets have scaled back rate expectations after recent press speculations pointing to a prolonged pause at 3.75 percent, we remain confident that the ECB will move in the second quarter and rates will hit 4 percent in June." - IHT

Published on  Mon, Feb 5 2007, 11:33 GMT

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Fed Meeting Review

Thu, Feb 1 2007, 07:15 GMT
by Marina Schiaffino

FXstreet.com


Fed Meeting Review

FOMCThe Fed has left interest rates unchanged at 5.25%; and the dollar is currently coming under pressure.

The reaction thus far to the FOMC statement has been dollar bearish, but only to a small degree. The release was well anticipate and the reaction somewhat muted. This will leave the market more sensitive to Non-Farm Payroll on Friday as it looks for clues to future direction. Read full report.

Check the effect that the result of the meeting is having over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related News

Analysts' comments

  • Ross Norman, analyst at TheBullionDesk.com:
    "Gold is biding time ahead of the FOMC decision ... (which) will give a lead to the dollar and then to gold, in the very near term you have to watch oil, the dollar is on hold... I would be inclined towards the upside (for gold)." - Forbes.com
  • John Putman II, Senior Analyst at FXstreet.com:
    "The reaction thus far to the FOMC statement has been dollar bearish, but only to a small degree. The release was well anticipate and the reaction somewhat muted. This will leave the market more sensitive to Non-Farm Payroll on Friday as it looks for clues to future direction. Minor support and resistance in the major US based pairs is currently capping the price action and will likely continue to do so through the balance of the US Session. Volatility levels should stay low through the next twenty four hours or so, giving us good capacity for excess volatility on Friday." - FXstreet.com
  • Joseph Trevisani, analyst at FX Solution:
    "In today’s prepared statement the FOMC acknowledges the recent expansion in the economy, replacing references to a slowing economy and a “substantial cooling’ of the housing market with ‘firmer economic growth’ and “stabilization” in the housing market. " - FXstreet.com
  • Ashraf Laidi, chief FX Analyst at CMC Markets NY:
    "Further dollar downside remaining against the euro (1.3080), sterling (1.9700) and the yen (120.00). We expect the gains in Aussie to remain capped at 77.70 cents as traders await Australia’s trade figures on Thursday evening. An ISM lower than 50, however, risks extending gains to the 38% retracement at 77.90. USDCAD stabilized at the 1.1750 support, but 1.1720 remains a key target on Thursday. " - FXstreet.com

Published on  Thu, Feb 1 2007, 07:15 GMT

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Fed Meeting Preview

Tue, Jan 30 2007, 06:47 GMT
by Marina Schiaffino

FXstreet.com


Fed Meeting Preview

FOMCU.S. Government is still worried about inflation, but it's not probable that a rate hike is given on the 30th January's Meeting. The last hike was seen on June '06 when they hiked to the actual 5.25%.

Check the effect that the result of the meeting will have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related News

Analysts' comments

  • Tony Juste, FX Advisor at FXstreet.com:
    "FOMC decision, and the statement that will join it, definitely will mark the pace and will set the trend the Fed thinks is the one to follow in the short or even medium term. I am not expecting anything but just keeping rates steady, but I wonder what the tone will be this time. With a housing market that is far from being buoyant but the threat of inflation still in everyone's mouth, one feels we could have a surprise from the Fed this time, and that could prove to be a bull catalyst for the Dollar." - FXstreet.com
  • David Jones, chief markets analyst at CMC Markets:
    "There's certainly been an upturn in the U.S. economic data we've seen released over the last few weeks although the residential property market continues to struggle and, as such, there's mounting speculation that the Fed will not now be looking to cut interest rates in the near term." - AFX News
  • Darren Heathcote, economist at Investec Australia:
    "The market obviously perceives that (the Fed) are going to come out and say they are still highly on inflation watch ... If that's the case, then obviously that's dollar positive." - Reuters
  • Mark Gertler, economics professor at New York University:
    "The Fed has a somewhat odd problem in that things are going so well right now, and it’s hard to push for change when things are going well." - The New York Times
  •  Mike Lenhoff, chief strategist at Brewin Dolphin:
    "The housing data thus far suggests that there is stability, and there's no need for the Fed to respond by lowering interest rates." - Reuters
  • Yousuke Hosokawa, forex dealer at Chuo Mitsui Trust and Banking:
    "Recent data has confirmed the strength of the US economy, thereby reviving confidence in the dollar. But unless strong expectations emerge that the US Fed may move to hike interest rates, it may be difficult to push the dollar up much above its present level." - AFX News

Published on  Tue, Jan 30 2007, 06:47 GMT

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Bank of Japan Meeting Review

Thu, Jan 18 2007, 07:13 GMT
by Marina Schiaffino

FXstreet.com


BoJ Meeting Review

BoJThe Bank of Japan’s monetary policy board has decided on a 6-3 result to keep overnight rate target on hold at 0.25%. This is the first time in 12 meetings that the nine members of the policy board have not given an unanimous vote.

In July '06, the central bank raised the overnight call rate target for first time in six years, amid signs that the economy is on the mend and deflation is history.

Check the effect that the result of the meeting will have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related News

Analysts' comments

  • Naoki Iizuka, senior economist at Mizuho Securities:
    "The bank wisely concluded that it is too early to raise rates. The risk of inflation is very, very low, while the real risk is of a turn down in the business cycle." - The New York Times
  • Mamoru Yamazaki, chief economist at RBS Securities:
    "Between now and the February meeting, we will have GDP data and the central bank (BoJ) will be able to confirm the strength of consumer spending - the main factor behind today's decision to postpone a rise." - Reuters
  • Hidenao Nakagawa, secretary general of the governing Liberal Democratic Party:
    "If the BoJ cannot unify its judgment on the economy and policy targets to conform to those of the government, it will represent a major flaw in the legal system." - AFX News
  • Yasunori Sone, political science professor at Keio University:
    "I think they made the decision because they lacked certainty about the economic recovery. Their views were divided. It could appear as if there had been a secret deal between the government and the BOJ... This could be read as a compromise." - Reuters
  • Shuji Tonouchi, economist at Mitsubishi UFJ Securities:
    "The bank appears to have succumbed to last-minute pressures."

Published on  Thu, Jan 18 2007, 07:13 GMT

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Bank of Japan Preview

Tue, Jan 16 2007, 08:10 GMT
by Marina Schiaffino

FXstreet.com


BoJ Meeting Preview

BoJThe Bank of Japan's nine-member policy will probably rise the overnight call rate target 25bp from 0.25% to 0.50%, on its incoming meeting. Although this is the most spread idea there's no consensus of how will the BoJ react.

In July '06, the central bank raised the overnight call rate target for first time in six years, amid signs that the economy is on the mend and deflation is history.

Check the effect that the result of the meeting will have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related News

Authorities' Comments

  • Hiroko Ota, Japan Economics Minister:
    "Japan is facing an extremely critical moment as it is finally getting out of deflation. Our most important task this year is to put an end to deflation. I hope [the Bank of Japan] will support the scenario of the departure from deflation with their monetary policies." - AFX News
  • Hidenao Nakagawa, secretary general of the governing Liberal Democratic Party:
    "If the Bank of Japan has a different perception on the economy, (the government) should take measures without covering it up. The government has a duty of exercising the right to seek a postponement on taking a vote (on a rate change at a two-day BOJ policy board meeting)." - AFX News

Analysts' comments

  • Steve Barrow, currency strategist at Bear Stearns:
    "Despite a likely Bank of Japan hike this Thursday, dollar/yen will continue to edge up towards 125 yen." - AFX News
  • Bilal Hafeez, foreign exchange strategist at Deutsche Bank:
    "The BOJ meeting is probably the most significant event of this week, most people are looking for a hike so to some extent it is already priced in. But nevertheless it will be interesting to see how the market reacts." - Reuters
  • Ashley Davies, forex strategist at UBS AG:
    "Even confirmation of tighter policy might not be sufficient to materially boost the yen or hurt the dollar if Bank of Japan governor Fukui continues to emphasise the gradualist approach to tighter rates in the subsequent press conference." - AFX News
  • Simon Derrick, head of currency research at Bank of New York:
    "Although there is clearly no certainty in this matter, we believe the prospects of a 25 basis point hike to be greater than 50 pct. Ms Ota may well feel confident in her assertion that nothing has changed on the economic front this past few weeks, but a specific catalyst is not a requisite for a policy of normalisation. The potential implications of a rate hike for the unit (yen) are not clear: no move would presumably re-focus the market's attention towards the Banks meeting in February whilst a 25 basis point increase might well precipitate a degree of 'after-the-fact' selling." - AFX News
  • Ashraf Laidi, chief currency analyst at CMC Markets:
    "With the yen drifting at 13-month lows against the dollar and near all time lows against the euro, the BoJ may risk provoking renewed yen carry trades, especially with the tightening policy environment in the euro zone and the UK, as well as the hawkish stance in the US." - AFX News

Published on  Tue, Jan 16 2007, 08:10 GMT

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BoE and ECB meeting review

Thu, Jan 11 2007, 14:18 GMT
by Marina Schiaffino

FXstreet.com


BoE and ECB meeting review

ECB and BoEThe unexpected rate hike by the Bank of England (BoE) has surprised many market speculators and traders. This increase, altogether with the ECB soft tone, is strengthening the GBP and leaving the Euro very weak against the Dollar.

Check the effect that the result of the meetings is havong over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

Bank of England

Related News

The Bank of England raises rates to 5.25% (FXstreet.com)
BoE hikes key repo rate 0.25 pct to 5.25 pct (AFX News)
BoE rate hike 'unnecessary', will hit consumers hard - BRC (AFX News)
Pound jumps after surprise BoE rate hike; Short sterling drops (AFX News)
Surprise BoE hike hits bonds, stocks; sterling up (Reuters)
BoE's rate hike 'regrettable' - BCC (AFX News)
BoE's decision to raise interest rates 'disappointing' - CBI (AFX News)
Bonds slide on surprise BoE rate hike; ECB holds (Reuters)
Sterling rallies, euro pares gains on BOE, ECB (Reuters)
Most UK homeowners shielded from BoE rate rise via fixed rate mortgages - BSA (AFX News)
BoE 'wrong-foots' market again, shortens odds of back-to-back hikes (AFX News)
Surprise BoE rate hike likely to be followed by more - CML (AFX News)
European stocks gain; FTSE falls after UK rate rise (Reuters)
Sturdy GDP growth justifies BoE rate hike - NIESR (AFX News)

Analysts' Comments

  • Adam Cole, currency strategist at Royal Bank of Canada:
    "For the time being, the markets are going with a pick-up in the pace of UK rate hikes, which is positive for sterling. The market will be looking for clues as to when the next (euro zone) rate hike will be." - Reuters
  • Divyang Shah, global strategist at IDEAglobal.com:
    "The market not looked for this move but will now likely look for two more rate hikes this year and see 5.75 pct as opposed to 5.50 pct." - AFX News
  • Ross Walker, UK economist at RBS:
    "The timing is a surprise. What this perhaps tells us is that we have a nasty inflation number coming next week and they wanted to act pre-emptively." - BBC News
  • Ian McCafferty, chief economic advisor at CBI:
    "It is disappointing that, with only tentative indications about the outcome of the wage round, the Bank has already decided to increase interest rates. If part of the intention was to dampen wage increases, it is doubtful a rate rise will have the desired effect." - AFX News

European Central Bank

Related News

ECB leaves interest rates unchanged at 3.5% (FXstreet.com)
ECB leaves rates unchanged (AFX News)
Bonds pare losses after dovish ECB, euro slides (Reuters)
ECB's Trichet says 'very close monitoring' of all inflation risks essential (AFX News)
ECB's Trichet defends the independence of the Central Banks (FXstreet.com)

Analysts' Comments

  • Holger Schmieding, chief economist for Europe at Bank of America:
    "We continue to expect the ECB to raise rates to 3.75 percent in March... and reach a peak of 4.25 percent in early 2008." - The Washington Post
  • Aurelio Maccario, economist at Unicredit MIB:
    "Trichet is not using 'vigilance', so no hike in February. The ECB will want to see strong January figures and then hike in March." - Reuters
  • Brian Dolan, director of FX research at Forex.com:
    "Trichet has given no concrete indication of the timing of the next rate hike. To the extent that the market was expecting signals of a March rate increase at this meeting, there was some disappointment there. I don't think we have seen the full impact on the euro yet. I do think the euro in the $1.26 area is a strong possibility." - Reuters

Published on  Thu, Jan 11 2007, 14:18 GMT

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ECB and BoE meeting preview

Thu, Jan 11 2007, 07:29 GMT
by Marina Schiaffino

FXstreet.com


ECB and BoE meeting preview

ECB and BoEThere are two different trends in the central banks meetings that are scheduled fot today.

On the one hand, the Bank of England (BoE) is expected to keep rates unchanged at 5.00% as it has done in the last meetings. It is then very possible that the bank issues no statement as is tradition when no policy change takes place.

On the other hand there's no consensus on how will the ECB act in today's meeting. There is some confusion as to what signals Trichet sent at the last press conference with regard to the timing of a likely rate hike, and today the big question is whether Trichet will signal a rate hike as early as February or leave the door open for a rate hike at a later stage. On balance we favour the ECB waiting until March before delivering a rate hike, but February is clearly a possibility as well. [Read Full Report]

Check the effect that the result of the meetings will have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

European Central Bank (Jan 11, 12:45 GMT)

Related News

Stocks rebound ahead of ECB; yen and oil struggle (Reuters)
Paris shares up midday on US futures, lower oil prices; ECB decision in focus (AFX News)
Miners boost European stocks ahead of rate decision (Reuters)
Dollar slips vs euro as ECB rate clues awaited (Reuters)
European govt bonds lower ahead of ECB rate meeting tomorrow (AFX News)

Analysts' Comments

  • Tony Juste, FX Advisor at FXstreet.com:
    "The ECB rate decision is one of the most uncertain of last times, and dealers are mixed whether we will see a rate hike or not today. I frankly am expecting the bank to leave rates unchanged, so not much of a surprise that would mean to me. A rate hike, with no real inflation threat (below 2%) and an economy that is not growing at a helathy pace yet, would me temerary and could put some of the regional economies, and therefore the Eurozone as a whole, in danger" - FXstreet.com
  • David Page, analyst at Investec:
    "This week's ECB announcement is almost certain to leave the refi rate on hold at 3.50 pct, having hiked by 25 basis points at the previous meeting." - AFX News

Bank of England (Jan 11, 12:00 GMT)

Related News

BoE set to keep repo rate unchanged at 5.00 pct (AFX News)

Analysts' Comments

  • Tony Juste, FX Advisor at FXstreet.com:
    "BoE rate decision is expected not to be a market mover this time. The Central Bank is expected to keep rates unchanged, given the progressive deterioration of the economy in the UK. Any other decision could cause a big shock and catch the market wrong-footed, but the probability is almost non-existent and we are hoping for rates to be held steady this time." - FXstreet.com
  • Philip Shaw, analyst at Investec:
    "While the committee waits for evidence on the current pay round to unfold, a sudden move this time around is unlikely, particularly bearing in mind that it raised rates as recently as November." - AFX News
  • Howard Archer, economist at Global Insight:
    "Momentum is certainly gathering for a hike next month, the same month in which the Bank publishes its quarterly Inflation Report." - AFX News

Published on  Thu, Jan 11 2007, 07:29 GMT

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Bank of Japan Review

Tue, Dec 19 2006, 09:54 GMT
by Marina Schiaffino

FXstreet.com


BoJ Meeting Review

BoJThe Bank off Japan’s monetary policy board has decided unanimously to keep overnight rate target on hold at 0.25%, as it was expected.

The overnight call rate was raised from zero in July, for the first time in nine years. The board decided to keep the Lombard rate unchanged too, at 0,4% in this case. After this movement, a rate hike has not been completely left apart for the analysts, but it has been posposed until the begining of '07.

Check the effect that the result of the meeting will have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related News

Analysts' comments

  • Tony Juste, FX Advisor at FXstreet.com:
    "BoJ is eager to keep the JPY at current levels and neither the announcement nor the speech that came afterwards have come to help the Yen. Now it is more uncertain that we will see any new rate hike in the short term, and that keeps investors worried as there had been some hopes made on the ability of the japanese eocnomy to get back on track. No wonder why the JPy has reached new multi-year lows against the Pound, as the carry trade thing goes on." - FXstreet.com
  • Nobuo Ibaraki, forex manager at Nomura Trust and Banking:
    "Fukui will likely avoid specifying the timing of a rate hike but will certainly keep expectations alive for it." - Reuters
  • Masamichi Adachi, economist at JPMorgan Securities:
    "The BOJ is likely to lift interest rates in January, or before the end of the first quarter at the latest, unless those data are so poor that the BOJ is forced to abandon its scenario for the economy and prices." - Reuters

Published on  Tue, Dec 19 2006, 09:54 GMT

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Bank of Japan Preview

Mon, Dec 18 2006, 13:30 GMT
by Marina Schiaffino

FXstreet.com


BoJ Meeting Preview

BoJThe Bank of Japan's nine-member policy will probably keep the overnight call rate target at 0.25%, on its incoming meeting.

In July, the central bank raised the overnight call rate target for first time in six years, amid signs that the economy is on the mend and deflation is history. Although this is the most expected movement, a rate hike has not been completely left apart for the analysts, but this movement will be probably seen at the begining of '07.

Check the effect that the result of the meeting will have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Analysts' comments

  • Tony Juste, FX Advisor at FXstreet.com:
    "BoJ interest rate decision is keeping traders on hold in the Yen crosses, as they need a catalyst for the next move in the crosses involving the japanese currency. Widely expected to keep the rates on hold, the central bank could surprise analysts with a hawkish for the short term that could include a rate hike prospect in the near future. That's the only thing tht could come at Yen's rescue in the current weak tone." - FXstreet.com

Published on  Mon, Dec 18 2006, 13:30 GMT

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Fed Meeting Review

Wed, Dec 13 2006, 08:42 GMT
by Marina Schiaffino

FXstreet.com


Fed Meeting Review

FOMCAs expected the Fed has left its interest rate unchanged at 5.25%. The Federal Open Market Comitee has talked again about inflation fears, and has left almost no room for a rate cut inside a short period of time.

Check the effect that the result of the meeting will have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related News

Analysts' comments

  • Tony Juste, FX Advisor at FXstreet.com:
    "FOMC rate decision did not come as a surprise, as the room for any ticks to the upside on interest rates does not look likely. However, I do not agree with those who say that the statement that was released afterwards contained a dovish message and that a rate cut could be seen as early as in the first quarter of 2007. In my opinion, the statement was again pretty much neutral, leaving the door open to nothing (at the moment) and still with the threat of inflation as the main topic." - FXstreet.com
  • David Wyss, chief economist at Standard & Poor's in New York: 
    "By mid-year, the unemployment rate will be ticking up and the inflation rate will be ticking down, so they will be able to move." - The Washington Post
  • Mark Zandi, chief economist at Moody's Economy.com:
    "The fact that there was very little change in the Fed's policy statement is a metaphor for no change in monetary policy any time in the future." - AFX News
  • David Jones, chief economist at DMJ Advisors:
    "The message here is that the Fed is going to keep policy unchanged for an extended period of time. Fed officials feel the economy is headed for a soft landing." - AFX News
  • Ethan Harris, chief US economist at Lehman Brothers:
    "When the Fed paused interest rates in the summer we thought it was the wrong move, but it now looks like it was exactly the right thing to do." - AFX News

Published on  Wed, Dec 13 2006, 08:42 GMT

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Fed Meeting Preview

Mon, Dec 11 2006, 15:20 GMT
by Marina Schiaffino

FXstreet.com


Fed Meeting Preview

FOMCAre we at the end of the rate hike cycle? The market and the majority of analysts expect the FOMC to stay on hold, keeping the fed funds rate unchanged at 5.25%. Inflation has steadied while economy grows at a softer-but-stable rhythm, so there’s no urgency for a rate cut or increase on the near horizon.

Check the effect that the result of the meeting will have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related News

Analysts' comments

  • Tony Juste, FX Advisor at FXstreet.com:
    "After all that has been said and done, I believe there is not much more to add for tomorrow's FOMC announcement. We should try to avoid thinking there is any extra room for upside in interest rates in the US (despite what hawks may have to say to this), but also not put too much emphasis on the start of rate cut cycle anytime soon. I think the current rate is a bit too high, the inverted yield curve is not something I would ever favour for I think it doesn't support a healthy tone in the economy, but at least the slowdown is being very moderate, and that means policy makers do not yet have too worrying warning signals as to consider an alternative strategy." - FXstreet.com
  • Clifford Bennett, founder of FxMax:
    "The general tone of the US data on Friday overall was one of our favoured soft landing scenario. The Fed will remain on hold til mid 2007. This, combined with the current account deficit and the constant re weighting of global portfolios away from the US dollar, still adds up to a bear dollar trend." - FxMax
  •  Tony Morriss, senior currency strategist at ANZ Investment Bank:
    "US Federal Reserve would be pleased with this result, with US jobs numbers showing that there is still growth in the US economy. You can see the sharp reaction in the bond market, that they got a bit ahead of themselves in terms of pricing in rate cuts from The Fed (US Federal Reserve)." - AAP
  • David Jones, chief economist for DMJ Advisors:
    "Call it beginner's luck, but I think Bernanke, in his first year as chairman, will achieve the soft landing he wants." - AFX News
  • Mark Zandi, chief economist at Moody's Economy.com:
    "I think the Fed is going to get what it wants which is an economy with a little more slack and a little less inflation." - AFX News

Published on  Mon, Dec 11 2006, 15:20 GMT

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ECB and BoE Meeting Review

Thu, Dec 7 2006, 15:42 GMT
by Marina Schiaffino

FXstreet.com


ECB and BoE Meeting Review

ECB and BoE meetingEuropean Central Bank (ECB) has increased its interest rate in 25bp, hiking to 3.50% while the Bank of England (BoE) has kept interest rates unchanged at 5.00%. Markets almost did not react to the news mainly because both decisions were widely anticipated.

Check the effect that these meetings have on the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

ECB

In-Depth Analysis

Related News

Analysts' comments

  • Zaki Kada, strategist at Thomson IFR Markets:
    "It is clear that Trichet is adamant about continuing the rate normalisation process and a hike in the first quarter of 2007 is very much in the offing." - AFX News
  • Tony Juste, FX Advisor at FXstreet.com:
    "Markets almost did not react to the news mainly because both decisions were widely anticipated. The only worrying thing (in my opinion) is that the ECB has less and less room to justify its moves. Its inflation woes are far from a reality and the economic growth is not in a healthy tone. In the other side of the story, the BoE I believe has gone as far as I could and would be very surprised to see rates in the UK anywhere higher in 2007. But remember that not so long ago we had a really unexpected rate hike, so I guess it's more a probability game." - FXstreet.com
  • Brian Dolan, director of FX research at Forex.com:
    "Trichet is not using any of the more hawkish language to indicate a rate hike in the next two meetings, and this is somewhat disappointing for those looking for a clear-cut sign of a rate hike. His comments are disappointing for euro bulls." - Reuters

BoE

In-Depth Analysis

Related News

Analysts' comments

  • Vicky Redwood, UK economist at Capital Economics:
    "There have been occasions when the MPC felt that consecutive changes in interest rates were necessary, but November's Inflation Report indicated little pressing need to change rates immediately, or indeed for a while." - AFX News
  • Andrew McLaughlin, group chief economist at Royal Bank of Scotland:
    "This will have been an open and shut case for the Monetary Policy Committee. January is also shaping up to be a formality, so roll-on February." - Financial Times

Published on  Thu, Dec 7 2006, 15:42 GMT

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ECB and BoE Meeting Preview

Thu, Dec 7 2006, 08:18 GMT
by Marina Schiaffino

FXstreet.com


ECB and BoE Meeting Preview

ECB and BoE meetingMarkets are eagerly awaiting for the ECB and BoE movements. After all the sharp movements of the Pound the Bank of England is expected to keep interest rates on hold at 5.00%. On the other hand many analysts preview that the European Central Bank will hike its Benchmark rate to 3.50% in this meeting.

Check the effect that these meetings will have on the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related News

Analysts' comments

  • Christine Lagarde, French Trade Minister:
    "At the current level, the euro penalizes exporters from the Euro-zone. French industrial leaders I met in Tokyo last week, who have invested and who export on the basis of the yen at a stable exchange rate (against the euro) are now worried about the development of their activities." - FXCM
  • Tony Juste, FX Advisor at FXstreet.com:
    "Both the Euro and the British Pound should have already priced in the respective decisions of the Central Banks, namely a rise in the Eurozone and staying flat in the UK. While the BoE is or should be happy witht eh current rate, the officials at the ECB 'say' that the urgent need is to combat inflation (at a 1.6% y/y rate) or the prospects of a rise in its measures. Therefore, what will really drive the markets will be the statement (BoE) and press conference (ECB) that will come after the announcement itself." - FXstreet.com
  • John Butler, economist at HSBC:
    "Notwithstanding ECB rhetoric suggesting that it is comfortable with the euro's recent rise and anticipates maintaining a hawkish bias into next year, in recent days the market has reduced the probability of hike beyond 3.5 percent to under 50 percent. That seems a bit low to us." - Reuters

Published on  Thu, Dec 7 2006, 08:18 GMT

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BoE Meeting Review

Thu, Nov 9 2006, 14:42 GMT
by Marina Schiaffino

FXstreet.com


BoEAs it was widely expected the Bank of England (BoE) has raised its Interest Rate by 0.25% to 5.0%. After four consecutive quarters of economic growth and although a volatile housing market, the UK economy shows a moderate expansion that the Bank is trying to strengthen through this rate hike.

Check the effect that the meeting has on the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related News

Analysts' comments

  • Tony Juste, FX Advisor at FXstreet.com:
    "The BoE raised interest rates as expected, and the market reacted also as expected, selling the Pound. The well-known 'buy the rumors ell the fact' theory worked once again in the market as dealers were awaiting the minutes for clearer indications on future moves once it was a 'done deal' that the Bank would raise interest rates this time. Inflation and economic growth will again hold the key for future decisions, but my take is that over 5% should not be sustainable for the country." - FXstreet.com
  • Philip Shaw , chief UK economist at Investec Securities:
    "The MPC will need a dose of soothing inflation news to calm its nerves if rates are going to climb no further. We believe that this will probably happen....indeed our main case view is that pay deals will stay low, and the US economy will show few signs of picking up again and that UK consumer trends remain uncertain." - AFX News
  • Michael Saunders, economist at Citigroup:
    "The upcoming Inflation Report will signal that a further rate rise will be needed in the first quarter to keep inflation on target. As in August, the MPC is likely to worry that the economy is becoming more inflation-prone." - AFX News
  • Milan Khatri, chief economist at RICS:
    "By acting in a timely manner, the modest rise in interest rates will help to cool the housing market but at the same time promote wider economic stability and prevent inflation pressures building." - AFX News
  • Kevin Hawkins, BRC General Director:
    "A rise was not needed now. With retailers reporting year-on-year inflation of only 1.5 per cent and price competition intense, it's clear inflationary pressure is not coming from the high street. By piling another rise on top the Bank has made it more likely economic activity will be depressed over the next six months." - AFX News
  • Ian McCafferty, chief economic advisor at CBI:
    "This move (BoE) comes as no surprise to businesses, who recognised it would be necessary to deliver longer term economic stability. Although some commentators are already looking ahead to the next rise, our forecasts suggest that a further increase should not be needed." - AFX News
  • Martin Temple, EEF General Director:
    "This decision was always going to be tight but we believe the evidence remained against a rise. With a weakening United States likely to slow growth in the UK and spare capacity in the labour market the Bank could still have stayed its hand." - AFX News

Published on  Thu, Nov 9 2006, 14:42 GMT

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BoE Meeting Preview

Thu, Nov 9 2006, 08:27 GMT
by Marina Schiaffino

FXstreet.com


BoEThe Bank of England will probably continue today with its rate hike policy, raising borrowing costs to a five-year high in order to offset the above-target inflation. It is widely expected that Monetary Policy Committee will raise its key repo rate by a quarter point to 5.00%, its highest level since September 11th, 2001.

Check the effect that the meeting will have on the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related News

Analysts' comments

  • Tony Juste, FX Advisor at FXstreet.com:
    "BoE is expected to raise interest rates by a quarter of a full basis point. The market will not be surprised by that decision, and we should even think it could turn somewhat negative for the GBP if the remarks made after the announcement do not leave some scope for further rate hikes. In short, what the market is bidding for at this point in time is a hawkish tone from the BoE rather than just a 25bp rate hike, which has already been priced in by the market for over two or three weeks." - FXstreet.com
  • Stuart Bernau, executive director at Nationwides
    "Despite the expectations of a rise (in interest rates), consumer confidence has returned to the levels seen early this year." - AFX News
  • Korman Tam, currency strategist at Forexnews.com
    "Sterling traders turn their attention to the Bank of England’s monetary policy announcement on Thursday at 7:00 AM EST. Given recent economic data and hawkish commentary, markets expect the BoE to tighten policy by 25-basis points to 5.00%. Although the rate hike is fully priced in, traders will try to gauge whether further policy tightening can be expected. The sterling received boost yesterday following a report from the NIESR when it suggested that another rate hike in February 2007 may be necessary. The subsequent policy statement will thus be closely scrutinized." - Forexnews.com

Published on  Thu, Nov 9 2006, 08:27 GMT

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RBA Meeting Review

Wed, Nov 8 2006, 10:56 GMT
by Marina Schiaffino

FXstreet.com


RBAAfter the aggressive rate hikes policy that the Reserve Bank of Australia (RBA) adopted over the beginning of the year and the stop it made in its September meeting, the RBA has reprised the rate hike policy in this meeting. The Bank has raised a 0.25% the 6.00% Cash Target Rate leaving it at 6.25%. After the statement that governor Glenn Stevens has made it can be seen a significant risk to inflation, leaving the door open for further tightening in next December meeting.

Check the effect that the meeting is having on the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related News

Authorities' comments

  • Kim Beazley, Australia Opposition Leader:
    "He wanted an interest rate rise and he got it ... signed sealed and delivered by John Howard. Middle Australia is being belted, and around the kitchen tables tonight there'll be an atmosphere of gloom and some considerable concern as they contemplate that rates have been rising on them time and time again." - The Age
  • Glenn Stevens, Reserve Bank of Australia deputy governor:
    "The decision was taken against a background of continued expansion in the global economy and further evidence that inflationary pressures had increased. The board’s judgement yesterday was that a somewhat more restrictive stance of monetary policy was required in order to moderate inflation over time, and thereby to secure sustainable growth." - News.com.au
  • John Howard, Australia Prime Minister:
    "I don't like this interest rate rise any more than any borrower. I know it will cause pain for some people." - The Age

Analysts' comments

  • Tony Juste, FX Advisor at FXstreet.com:
    "As widely expected by the market, the RBA has raised interest rates, but what's more important, has maintained a hawkish tone for the near future, anticipating a rate hike fairly soon. However, I am not of the opinion this should have a positive impact on the AUD as the amrket is pricing in something between 6.5-6.75% before the first quarter of the next year." - FXstreet.com
  • Ian Gunner, head of FX research at Mellon Foreign Exchange:
    "In Australia, the RBA raised rates by 25bp, citing the need to respond to the increased risk of inflation staying above 2%-3% over the medium-term. They also noted that there had been evidence of past rate rises having some impact on the credit data, but gave no clear signal about what may happen in future. This will probably have to wait until next week’s quarterly Policy Statement." - Mellon Foreign Exchange
  • Michael Blythe, chief economist at Commonwealth Bank:
    "Where the cash rate is now is probably enough to head off inflation risks. Another rise will depend on how the economic data prints over the next couple of months. If the economy is not responding, there will quite likely be another rise next year." - Stuff
  • Su-Lin Ong , senior economists at RBC:
    "Should they continue to moderate, the 25 basis point hike could well be the last in this long and drawn out cycle which began in 2002." - The Age
  • Rob Henderson, chief economist markets at National Australia Bank:
    "The Australian dollar made a late run to the finish line, ending out in front on the back of John Howard having a flutter on the outcome of the RBA board meeting." - The Australian
  • Richard Grace, senior currency strategist at Commonwealth Bank:
    "The tone of the RBA statement has been watered down slightly and therefore the Aussie is reflecting that." - News.com.au

Published on  Wed, Nov 8 2006, 10:56 GMT

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RBA Meeting Preview

Tue, Nov 7 2006, 09:09 GMT
by Marina Schiaffino

FXstreet.com


RBAAfter the aggressive rate hikes policy that the Reserve Bank of Australia (RBA) adopted over the beginning of the year and the stop it made in its September meeting, it is expected that the Bank will hike interest rates again this reunion. A possible 0.25% rate hike in the actual 6.00% Cash Target Rate is the most probable decision.

Check the effect that the meeting will have on the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related News

Analysts' comments

  • Tony Juste, FX Advisor at FXstreet.com:
    "The RBA is expected raise interest rates (I wouldn't say it is a done deal, but that the majority is looking for it) on growing concerns about inflation and possible economic imbalances. It might even look probable to think of a possible 7% IR target in the foreseeable future for the region." - FXstreet.com

Published on  Tue, Nov 7 2006, 09:09 GMT

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ECB Meeting Review

Thu, Nov 2 2006, 16:17 GMT
by Marina Schiaffino

FXstreet.com


BoJAs it was widely expected the European Central Bank has kept its interest rate on hold at its actual 3.25%. Most of the market reactions have been seen after JC Trichet post meeting speech that has given hints on the next movement of the Bank indicating probables rate hikes in December. However, opinion is divided on what ECB will do beyond this month.

Check the effect that the result of the meeting is having over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related news

Analysts' and Authorities' comments

  • Jean-Claude Trichet, European Central Bank president
    "Even more than at the last press conference, I would say nothing that would distract the present market expectations as regards what could happen until the end of the year. That's absolutely clear." - AFX News
  • Tony Juste, FX Advisor at FXstreet.com:
    "There we go again. The fabulous and hawkish President of the ECB points to further risks in the economy coming via inflationary pressures (!!!!!!!) and so the Bank will have to remain a strong vigilance in data to keep current strong pace of growth." - FXstreet.com
    Read full comment at: The Advisor Blog
  • Jamie Coleman, economist at Thomson IFR markets:
    "The ECB tipped its hand at a December hike, saying strong vigilance is of the essence, its secret code for a hike at the next meeting." - AFX News
  • Michael Woolfolk, economist at Bank of New York:
    "Trichet calls for 'strong vigilance', that perhaps is the most important part of this. That is perhaps the code words that we were anticipating and clearly signals to the market this degree of transparency to the actions of the ECB. So it's 100 percent go for December." - Reuters

Published on  Thu, Nov 2 2006, 16:17 GMT

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ECB Meeting Preview

Thu, Nov 2 2006, 08:16 GMT
by Marina Schiaffino

FXstreet.com


BoJIt's widely expected that the European Central Bank will keep rates on hold at its actual 3.25%. On the post meeting speech JC Trichet will give hints on the next movement of the Bank, probably pointing to a possible rate hike in December. However, opinion is divided on what ECB will do beyond this month.

Check the effect that the result of the meeting will have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related news

Analysts' comments

  • Tony Juste, FX Advisor at FXstreet.com:
    "The decision should not surprise anyone as it is widely expected that the Bank will keep the rates on hold for now. However, as usual in these cases, the most important part (and surely the one that will turn the markets really volatile), will be the press conference that the President of the Institution, Jean-C. Trichet,  will hold shortly after the announcement is made. I expect this time his speech to be focused on economic growth rather than in the 'joke' of infaltionary pressures.." - FXstreet.com

Published on  Thu, Nov 2 2006, 08:16 GMT

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BoJ Meeting Review

Wed, Nov 1 2006, 09:00 GMT
by Marina Schiaffino

FXstreet.com


BoJThe Bank of Japan's nine-member policy board voted to keep the overnight call rate target at 0.25 pct, a move expected by the market. On the other hand its tone on the economic future is much more dovish of the expected.

Check the effect that the result of the meeting is having over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related news

Analysts' comments

  • Tony Juste, FX Advisor at FXstreet.com:
    "BoJ rate decision could've been more or less anticipated, but the dovish tone on the economy the Bank expressed did surprise many, as the indication of future rate hikes seems to be vanishing in the air. Recent JPY upticks should not be attributed to any rumour with respect to what the BoJ might do in the future, and should just be taken as either profit taking or speculative selling." - FXstreet.com
  • Osamu Tamada, securities strategist at Mizuho Investors:
    "Judging from recent data, I do not see any compelling reason to rush a rate hike." - AFX News
  • Tatsushi Shikano, senior economist at Mitsubishi Research & Consulting:
    "I see a good chance of another rate increase before the end of this year. While the most recent household spending data is weak on the surface, labor market and wage conditions - the most important factor in deciding the direction of consumer spending - are basically improving, which suggest that the underlying recovery trend in consumer spending will be sustained. Unless the BoJ's analysis of these key factors changes, it would not be a surprise if it moves to hike rates before the end of this year." - AFX News

Published on  Wed, Nov 1 2006, 09:00 GMT

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Fed Meeting Review

Thu, Oct 26 2006, 07:51 GMT
by Marina Schiaffino

FXstreet.com


FOMCThe fed came in as expected and held rates at a steady 5.25%.  Verbiage in the statement remained unchanged and the fed has left the door open for additional increases if inflationary pressure should increase.  The dollar has been selling off ahead of the release and we’ve seen some increase in negative momentum immediately after the release taking out DIMI to -20 (not final); this condition will likely be short lived market noise and actual impact of the release should be well within daily ATR. Read full John Putman's report.

Check the effect that the result of the meeting is having over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related news

Analysts' comments

  • Tony Juste, FX Advisor at FXstreet.com:
    "FOMC did what was widely expected, there is no doubt about that. When it comes to the statement released afterwards, I think we could even consider it a bit hawkish, but the market did not pay attention to any sign other than the fact that we may have already seen the top in interest rates in the US for quite some time. The Dollar being lower against the majors could be attributed to this particular vision, although there are many technical signals that pointed in that direction beforehand." - FXstreet.com
  • Tohru Sasaki, chief forex strategist at JPMorgan Chase:
    "The statement itself is slightly bullish for the dollar. Strong economic growth and lower inflation expectations mean a higher real interest rate in the U.S., so that's positive for the dollar." - Reuters
  • Robert Rennie, chief currency strategist at A.G. Westpac:
    "Dollar selling momentum has continued through Asian trading following a weaker dollar in US as the Federal Open Market Committee's statement was interpreted as having a slightly softer tone." - AFX News

Published on  Thu, Oct 26 2006, 07:51 GMT

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Fed Meeting Preview

Mon, Oct 23 2006, 11:11 GMT
by Marina Schiaffino

FXstreet.com


FOMCThe focus of this meeting will be the statement on inflation and economic growth rather than the interest rate decision itself. Thoughts about inflation outlook are unclear. Economic growth seems to be slowing down gradually. Therefore, it is widely expected among the analysts' community that the Fed will keep the benchmark rate unchanged at 5.25%.

Check the effect that the result of the meeting will have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related news

Analysts' comments

  • Tony Juste, FX Advisor at FXstreet.com:
    "The FOMC statement is key to investigate whether the rates in the US have finally topped out and the best they will do is to keep on hold for some time before a new rate cut cycle starts; otherwise, the Dollar bears wouold have to face the problems of a new rise in interest rates if the Fed considers the economy has yet to show some real weakness. So far there has been mixed data and anything could happen as some say inflation is not under control and the economic activity is not slowing down that much." - FXstreet.com
  • William Poole, St. Louis Federal Reserve President
    "The current economic outlook is such that policy makers are just as likely to raise rates as lower them. The outlook for the federal funds rate is approximately symmetrical." - FXCM
  • Michael Trounce, interest rate strategist at Nomura International:
    "Risk aversion is falling because the market has become more certain that the Fed is done and that the U.S. is in for a soft landing, with greater confidence materialising that the housing market slowdown is contained and will be countered by positive effects from energy price falls." - Reuters
  • Janet Yellen, San Francisco Federal Reserve President
    "It makes sense for the Federal Reserve to hold monetary policy stable for a time because the full effect of 17 increases to the federal funds rate starting in 2004 has yet to be seen." - FXCM
  • Gavin Friend, currency strategist at Commerzbank Corporates & Markets:
    "Indeed, with other data this week including existing and new home sales, which should continue to reflect the slowing of the US housing market, the dollar may take a hawkish Fed more negatively." - AFX News
  • Mike Swanson, senior economist at Wells Fargo:
    "The Fed is sitting on a teeter-totter with two equally big heavy people and they are in the middle wondering which one is going to get the upper hand." - MarketWatch

Published on  Mon, Oct 23 2006, 11:11 GMT

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ECB and BoE meeting review

Thu, Oct 5 2006, 14:57 GMT
by Marina Schiaffino

FXstreet.com


ECB and BoEForecasts have been acomplished and ECB has hiked it's interest rates by 25bp to 3.25& while BoE has kept it's repo rate unchanged at 4.75%. Expectations of a possible rate hike on the European Central Bank will be resolved on November 2nd meeting, although the most likely date for the next rate movement is December.

Check the effect that the result of the meeting is having over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

European Central Bank

Related News

ECB’s Trichet does not deny rate hike in September (FXstreet.com)
Trichet says will not contradict mkt expectation of further rate hike by yr-end (AFX News)
Trichet says some further ECB tightening warranted if recovery continues (AFX News)
Euro steady after ECB rate hike, awaits Trichet (Reuters)
ECB hikes its interest rates 25bp (FXstreet.com)
ECB hikes refi rate to 3.25 pct from 3.00, as expected (AFX News)

Analysts' Comments

  • Tony Juste, FX Advisor at FXstreet.com:
    "As expected, the ECB raised interest rates. What I liked is the market's reaction to the news, sellinf the Euro off against the Dollar. Maybe some of those sellers though, like me, that it was not the right thing to do, although they insist in inflationary pressures being the cause, a root that I don't quite agree with." - FXstreet.com
  • Audrey Childe-Freeman, economist at CIBC World Markets:
    "The ECB has been excellent at communication in the past few quarters, the rates outcomes are becoming highly predictable and more and more of a non-event. If we do get a 'closely monitoring' wording, that should open the door for more rate hikes, the euro should be favoured on the back of that." - Reuters
  • Umberto Alvisi, currency strategist at Credit Suisse:
    "Falling oil prices could help euro zone inflation to fall, which might prompt investors to believe the ECB might ease its pace of tightening. Despite the relative hawkishness of the ECB, the euro actually has not traded any higher than it did a few months ago. The euro is potentially vulnerable to a reduction in those relative tightening expectations." - Reuters

Bank of England

Related News

BCC says BoE decision to keep rates unchanged was "right" for British business (AFX News)
Pound drops after BoE leaves interest rates unchanged at 4.75 pct (AFX News)
Bank of England leaves rates on hold (FXstreet.com)
BoE keeps key repo rate unchanged at 4.75 pct (AFX News)

Analysts' Comments

  • Tony Juste, FX Advisor at FXstreet.com:
    "Surprisingly enough, Cable was hit hard after the BoE left interest rates unchagted. I have to say that I, although favoured a move lower, would not have imagined such a sharp move after what for some people should've been a day for the Bank to hike interest rates. My bet is that we could see that happening pretty soon." - FXstreet.com
  • Trevor Williams, chief economist at Lloyds TSB Corporate Markets:
    "The MPC has chosen to play the waiting game this month, but whether it needed to is another question. The evidence to justify a move was there for all to see." - AFX News
  • Matthew Sharratt, economist at the Bank of America:
    "We expect that the MPC will wait until November so that any decision to raise rates is based on fresh Inflation Report forecasts." - AFX News
  • Ian McCafferty, CBI's chief economic adviser:
    "With the economy growing solidly but on course to slow next year, business will hope that when the Bank does make its move, it will be well signalled, and that one increase will be enough to keep inflation well controlled through 2007." - AFX News
  • David Kern, economic adviser to the British Chambers of Commerce:
    "Keeping interest rates unchanged at 4.75 pct is the right decision for British business. Though CPI inflation rose to 2.5 pct in August - the fourth month in a row with inflation above the official 2 pct target - the MPC was wise not be rushed into potentially damaging tightening, before some of the huge uncertainties are resolved." - AFX News

Published on  Thu, Oct 5 2006, 14:57 GMT

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ECB and BoE meeting preview

Tue, Oct 3 2006, 07:35 GMT
by Marina Schiaffino

FXstreet.com


ECB and BoEAfter all the sharp moves in the currencies that the two main European banks meetings have favoured, market is awaiting for the ECB and BoE rate decisions eagerly.

It is very probable that a rate hike is seen on the European Central Bank, in order to soften the inflationary trend that has been registered lately. On the other hand, it's less likely that the English Bank would follow this path, since probably we wont see any more rate hike in this year.

Check the effect that the result of the meeting is having over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

European Central Bank

Related News

US dollar weaker in Singapore afternoon trade before ECB rate decision (AFX News)
Euro dips before expected ECB rate rise (Reuters)
Major currencies little changed ahead of Bernanke speech, ECB decision (AFX News)
European government bonds fall further as players brace for ECB rate hike (AFX News)
US dollar slips vs yen, euro in Singapore afternoon ahead of ECB meeting (AFX News)
ECB rate setter says inflation dampening effects of globalisation fading (AFX News)

Analysts Comments

  • Tony Juste, FX Advisor at FXstreet.com:
    "ECB's more-than-likely rate hike will leave the european economy in a difficult point, where member states like Germany and France will welcome the decision (maybe they are the ones pushing it for) and others like Spain, Italy and the Netherlands who will have a tough time to keep their growth rate afloat. Let's not forget that the more expensive the money is, the less people have to spend... and this could turn into and endless circle." - FXstreet.com
  • Howard Archer, analyst at Global Insight:
    "The relatively healthy retail sales data add to other evidence that euro zone domestic demand is holding up well at the moment. This will reinforce the ECB's belief that monetary policy accommodation should continue to be withdrawn despite consumer price inflation dipping below its target rate in September. Consequently, a 25 basis point interest rate hike to 3.25 pct is odds-on for Thursday." - AFX News
  • Matthew Sharratt, economist at Bank of America:
    "Signs of a slowdown in the third quarter do suggest once the (European Central Bank) reaches roughly neutral rates of 3.5 percent by the end of the year they are unlikely to move further beyond 3.5 percent in 2007. But this number won't on its own have an impact on the tightening we expect on Thursday and in December." - Reuters
  • Zaki Kada, strategist at Thomson IFR Markets:
    "The ECB will hence be adamant about raising rates tomorrow despite today's softening." - AFX News
  • Russell Bloom, economist at Thomson IFR Markets:
    "London dealing desks cite rumours of ECB checking rates but players in the know see this as highly unlikely." - AFX News

Bank of England

Related News

BoE poised to keep repo rate unchanged at 4.75 pct in split vote (AFX News)
UK services sector stays strong, BoE on course for rate hike (AFX News)
BoE rate hike on Thurs more likely after surprisingly firm CIPS survey (AFX News)
BoE poised to keep repo rate unchanged at 4.75 pct in split vote (AFX News)

Analysts Comments

  • Ian Gunner, head of FX research at Mellon Foreign Exchange:
    "GBP has retained good support going into today’s MPC meeting, although the likelihood is that they do nothing and the disappearance of event risk would suggest EUR-GBP upside." - Mellon Foreign Exchange
  • Tim Clayton, economist at Investica:
    "The Monday data reported an increase in the CIPS index for the manufacturing sector to 54.4 in September from 53.0 the previous month and the solid reading will increase confidence in the economy. Interest rates are unlikely to be increased this week, but there will be a greater reluctance to sell the currency ahead of Thursday's Bank of England decision given the firm economic data." - Investica

Published on  Tue, Oct 3 2006, 07:35 GMT

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FOMC meeting Review

Thu, Sep 21 2006, 08:05 GMT
by Marina Schiaffino

FXstreet.com


FOMCAs it was expected the Fed's Federal Open Market Commitee (FOMC) decided to keep its target for interest rates at 5.25%. Although the inflationary fears for the high readings on CPI, the slowdown in economic growth appears to be continuing. The lower than expected numbers of housing starts and permits have partly helped this trend.

Check the effect that the result of the meeting is having over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table. Review also the historical Interest Rates data at US in our Economic Time Series.

In-Depth Analysis

Related news

Authorities' comments

  • FOMC Statement:
    "The moderation in economic growth appears to be continuing, partly reflecting a cooling of the housing market. Readings on core inflation have been elevated." - Federal Reserve

Analysts' comments

  • John Putman, CEO from FXAnalytics:
    "With the FED will holding current rates at 5.25, any initial reaction by the market in the next twenty four to forty eight hours should be neutralized in the coming week or two. My short term bias on the dollar is for a sell-off in the next day or so with no interest rate increase on the horizon." - FXstreet.com
    Read full comment at John Putman's Blog
  • Tony Juste, FX Advisor at FXstreet.com:
    "FOMC rate decision has not surprised me at all, as it could've been dangeours to hike rates at this point when the economic slowdown has really started to show its neck via a clear slowdown in the housing market. I still have doubts on whether we will see more hikes or not, but admittedly the Fed's tone is not yet that dovish to really think the end of the rate-hike cycle is here for good." - FXstreet.com

Published on  Thu, Sep 21 2006, 08:05 GMT

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FOMC Meeting Preview

Tue, Sep 19 2006, 14:16 GMT
by Marina Schiaffino

FXstreet.com


FOMCAre we at the beginning of the end of the rate hike cycle? The market and the majority of analysts expect the FOMC to stay on hold, keeping the fed funds rate unchanged at 5.25%.

It is unclear whether the Fed's tone will be as hawk as before, but the economy is showing some signs that may be of a concern to the hawks. With the clear slowdown in the housing market and some real signs of an easing inflation cycle, the US Central Bank fight on inflation may not be now the only front to battle; keeping the actual level of growth should also be a priority.

Check the effect that the result of the meeting will have n the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related news

Analysts' comments

  • Henry Paulson, U.S. Treasury Secretary:
    “We were able to report that US economic growth is settling into ranges more in line with our long term potential. We continue to see solid productivity growth and job growth, and we continue to make progress in bringing down our fiscal deficit. The residential housing market is cooling from record unsustainable growth rates, but growth in the US economy is being supported by other components, including wage growth, strong corporate balance sheets, and increased business capital investment.” – FXCM
  • John Lipsky, IMF First Deputy Managing Director:
    “The somewhat slower growth in consumption in the US was part of an inevitable and desirable adjustment process. What is important is that it is kept in balance and on track and does not involve a slowdown in global growth.” – FXCM
  • Michael Workman, senior economist at Commonwealth Bank:
    "The softness in the housing market in recent months points to the risk of a sharper than expected economic slowdown. The Fed will not want to exacerbate this risk with further rate hikes in the near term." - AFX News

Published on  Tue, Sep 19 2006, 14:16 GMT

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Swiss National Bank meeting preview

Tue, Sep 12 2006, 11:33 GMT
by Marina Schiaffino

FXstreet.com


SNBSwitzerland is in the middle of an economic upswing. Recently released GDP figures for the second quarter showed robust growth of 3.2% over the past year. The economic expansion has been broadly based on private consumption, investments and exports are all growing nicely.

Following the trend stablished by the ECB, many analysts see a clear rate hike on this meeting. Check the effect that the result of the meeting will have n the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Analysts' comments

  • Tony Juste, FX Advisor at FXstreet.com:
    "The low benchmark rate in Switzerland looks to be not enough to combat current inflation expectations, and it is widely expected that the SNB will hike interest rates again. That certainly won't affect the growth rate, and I would even dare to say it will put Switzerland in line with other developed countries." - FXstreet.com
  • Philipp Hildebrand, Swiss National Bank board member:
    "The Swiss economy had hit a cyclical peak and the growth will slow next year" - Forexnews.com

Published on  Tue, Sep 12 2006, 11:33 GMT

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Bank of Japan Review

Fri, Sep 8 2006, 08:16 GMT
by Marina Schiaffino

FXstreet.com


BoJThe Bank of Japan's nine-member policy board voted unanimously to keep the overnight call rate target at 0.25 pct, a move widely expected by the market.

In July, the central bank raised the overnight call rate target to 0.25 pct from zero, the first rate increase in six years, amid signs that the economy is on the mend and deflation is history. [Full story]

In-Depth Analysis

Related News

Analysts' comments

  • Cherelle Murphy, Australia and New Zealand Banking Corp currency trader:
    "The Japanese decision was the key driver for currencies. We expect that the Bank of Japan will maintain a generally positive view but will remain fairly conservative." - AFX News
  • Toshihiko Fukui, Bank of Japan Governor:
    "The change in the base year and other changes made a bigger impact than the market had thought. But I believe the data still confirms that prices have been on a moderate uptrend since the start of this year, and suggests that the year-on-year rate of change in consumer prices is projected to continue to follow a positive trend, as the output gap continues to be positive." - AFX News

Published on  Fri, Sep 8 2006, 08:16 GMT

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BoE Meeting Review

Thu, Sep 7 2006, 11:29 GMT
by Marina Schiaffino

FXstreet.com


BoEThe Bank of England has decided to freeze interest rates at 4.75% after the two day Monetary Policy Committee celebrated today.

This decision follows last month´s surprising quarter of a perceptual point rate hike. The bank justified this hike as a pre-emptive strike against secondary inflation produced by increasing energy prices. Some experts, though, advance that the bank might decide another quarter of a point rate hike after November´s meeting to dampen growing inflationary pressures. [ Full Story ]

In-Depth Analysis

Related News

Analysts' comments

  • Sally Low, BCC Director of Policy and External Affairs:
    "We are still concerned that last month's rate rise may have damaged British business and urge the Monetary Policy Committee to reject the clamour in some quarters for further early rate increases. Even if UK businesses succeed in absorbing the impact of last month's increase, raising rates further at this time would seriously damage business confidence and could well push the recovery into reverse." - AFX News
  • Ross Walker, economist at Royal Bank of Scotland:
    "After the excitement of Augusts rate hike, September will almost certainly mark a reversion to 'boring' monetary policy. There is no pressing need to raise rates at this stage." - AFX News
  • Ian McCafferty, chief economic advisor at CBI:
    "The full impact of that rate increase will take some time to feed through, but there are already signs of dampened confidence among consumers, especially in their spending on services. The Bank should continue to wait and see how the outlook for growth and inflation unfolds before taking any further action." - AFX News

Published on  Thu, Sep 7 2006, 11:29 GMT

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BoE Meeting Preview

Thu, Sep 7 2006, 07:18 GMT
by Marina Schiaffino

FXstreet.com


BoE After the unexpected rate hike of the last meeting, market awaits for the decision of today's Bank of England assembly. Although it's widely expected that the MPC will keep interest rates on hold, maybe the nine members council will surprise everybody and move the rates again.

Check how will the BoE affect the markets at our our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related News

Analysts' comments

  • Stuart Bernau, Executive Director at Nationwides:
    "The coming months will prove to be telling as they will show whether confidence can recover at a time when consumers' pockets begin to feel the real effect of the rate change."  - AFX New
  • Marcus Backlund, Forex Assistant Advisor at FXstreet.com:
    "After the last unexpected 25 basis point rate hike to 4.75% by the Bank of England, the markets are not expecting another hike at the upcoming meeting. However, recent strength in UK fundamental data has increased speculation of higher interest rates later this year." - FXstreet.com

Published on  Thu, Sep 7 2006, 07:18 GMT

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RBA Meeting Review

Wed, Sep 6 2006, 07:05 GMT
by Marina Schiaffino

FXstreet.com


RBAThe Reserve Bank of Australia has done what was widelly expected by the markets and has kept the Cash Target Rate at a 6.00%. Anyway, a possible 0.25% rate hike in the interest rate value is likely to be seen before the end of the year.

Check the effect that the result of the meeting had on the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Related News

Analysts' comments

  • Tony Juste, FX Advisor at FXstreet.com:
    "RBA has done what it was expected. The fight against rising inflation pressures can't take over consumer confidence, and just as a reminder, the indicator showing consumer sentiment marked a record drop after August's rate hike, and this is something the institution will have to deal with. However, one might expect the central bank to take action at least before the end of the first quarter of 2006, as wages and prices are still on the rise." - FXstreet.com

Published on  Wed, Sep 6 2006, 07:05 GMT

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RBA Meeting Preview

Tue, Sep 5 2006, 14:04 GMT
by Marina Schiaffino

FXstreet.com


After the aggressive rate hikes policy that the Reserve Bank of Australia (RBA) adopted all over the beginning of the year, it is widely expected that the Bank will keep interest rates on hold in this meeting. Anyway, a possible 0.25% rate hike in the actual 6.00% Cash Target Rate is likely to be seen before the end of the year.

Check the effect that the meeting will have on the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

In-Depth Analysis

Analysts' comments

  • Tony Juste, FX Advisor at FXstreet.com:
    "RBA's intentions of contaning Australia's growth include, or anticipate, a rate hike, if not before year-end, at least within the first quarter of 2007. That said, I don't think we will see any hike in the next 1-2 meetings and therefore one should pay more attention to  what the official statement will tell rather than what the decision will be." - FXstreet.com

Published on  Tue, Sep 5 2006, 14:04 GMT

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ECB Monetary Policy Decision Review

Thu, Aug 31 2006, 14:42 GMT
by Marina Schiaffino

FXstreet.com


ECB leaves rates unchanged

by AFX News

 The European Central Bank said it decided to leave its leading interest rates unchanged at today's governing council meeting. The ECB raised rates at its previous monetary policy meeting on Aug 3, so no move was expected at today's meeting. Main refinancing operations will continue to be conducted as variable rate tenders with a minimum bid rate of 3.00 pct. The deposit rate remains at 2.00 pct and the rate on the marginal lending facility at 4.00 pct. [Full Story]

In-Depth Analysis

Related News

Analysts' comments

  • Holger Schmieding, analyst at Bank of America:
    "We expect the ECB to promise to 'exercise strong vigilance' and maintain the forward-looking language in its statement, suggesting that the removal of monetary accommodation will probably have to continue even after October." - AP
  • Teis Knuthsen, head of FX and Fixed Income Research at Danske Bank :
    "The decision itself was a no-brainer. What we need to see is how Trichet will phrase the bias of monetary policy, how 'vigilant' will he be. The markets are looking for the ECB to be relatively hawkish compared to the relative dovishness of the Fed of late." - Reuters

Published on  Thu, Aug 31 2006, 14:42 GMT

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FOMC Meeting Minutes Review

Wed, Aug 30 2006, 07:21 GMT
by Marina Schiaffino

FXstreet.com