FOMC reinforces the aggressive message, increases the policy rate by 75bps

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Aggressive 75bp increase in the policy rate; Aggression reinforced through ‘dot plot’ In a clear signal of its determination to vanquish inflation the Federal Reserve’s FOMC increased rates by 75bps

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17 Jun 2022

RBA policy rate response: are markets pricing “too much” or “too little”? 

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In what was somewhat of a surprise, the RBA joined a number of other developed country central banks in announcing a 50 bp policy rate increase at the conclusion of

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10 Jun 2022

RBA and the ‘stitch in time saves nine’ approach to monetary policy

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 The outcome of today’s RBA meeting is a difficult one to call. According to the 22 economists polled by Bloomberg, eight expect a 25 bp increase, eleven expect 40 bps

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07 Jun 2022

The Fed and the ECB: A tale of two central banks

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I have described the task facing the Fed and ECB is akin to a circus high wire act: charting a path between getting inflation back toward target without tipping the

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03 Jun 2022

Federal Open Markets Committee, European Central Bank and Reserve Bank of New Zealand movements

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Federal Open Markets Committee minutes underscore The US Federal Reserve’s aggression Prior to the release overnight of the Fed’s Federal Open Markets Committee (FOMC) meeting minutes there had been some

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27 May 2022

Fed, RBA and BoE face challenges

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Summary Powell comments reinforce Fed’s aggressive stance. Markets roiled. Volatility to continue Wage Price Index Price Index eases pressure on the RBA. Focus switches to today’s April labour force data

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20 May 2022

Central bank conundrum

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Summary US April CPI: Still a high wire act for the US Federal Reserve (the Fed). A higher than expected CPI keeps maximum pressure on the Fed. Real interest rates (including the

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13 May 2022

Australian CPI: RBA to hike in May and June

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The March quarter consumer price index (CPI) presents the Reserve Bank of Australia (RBA) Board with a clear and present challenge when it meets next Tuesday. To recap, the six-month

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02 May 2022

A round-the-world wrap up on rising rates and inflation

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RBNZ raises the policy rate for the fourth time this cycle by 50 bps to 1.50 per cent. Bank of Canada also hikes 50 bps  Proving itself one again as

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19 Apr 2022

RBA: Run out of “patience”?

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The RBA Governor’s Statement on Tuesday appeared to indicate that the RBA Board has learnt from the difficulties facing the Fed and ECB.  “Patience” is no longer prudent. Both the

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07 Apr 2022