CB Monetary Policy Unchanged

15 December, 2017

CB Monetary Policy Unchanged

Thursday saw the latest Monetary Policy Committee (MPC) report from the Bank of England. The BoE stated that “further modest increases” in interest rates are probable, as the Bank tries to bring inflation in line with its 2% target in the coming years. The MPC appeared to be unconcerned with inflation rising to 3.1% last month and voted unanimously at their December meeting to leave interest rates at current levels. The MPC is waiting to see where inflation will be in early 2018, along with the progress of Brexit negotiations, which will form a major part of their February Inflation Report.

The European Central Bank kept its ultra-easy monetary policy unchanged on Thursday, keeping interest rates low for an extended period and pledging to provide additional stimulus if required. At a press conference, ECB President Draghi commented “The difference in the monetary policy decisions and therefore interest rate decisions (with the US) reflects the different position in the economic recovery, which incidentally is stronger now in Europe. However, it is more advanced in the US. We haven’t seen (any negative effect on the euro zone economy from the divergence in policy).” Going on to say, “The incoming information, including our staff projections – our new staff projections – indicates a strong pace of economic expansion and a significant improvement in the growth outlook.”

The Swiss National Bank (SNB) kept its current monetary policy in place on Thursday, although the SNB does expect Swiss inflation to exceed its target in 3 years, a possible insight as to when it might end its ultra-loose monetary policy. SNB Chair Jordan stated that they were in “no rush at all” to start normalizing policy, whilst other central banks have started to hike rates. Jordan commented that the CHF remained “highly valued”, despite the currency losing approximately 7% in value over the last 6 months.

With inflation a somewhat “hot-topic”, the US Commerce Department on Thursday released data showing US retail sales rose more than forecast in November and the previous month was revised higher, indicating a broad strengthening of consumer demand as the holiday shopping season got underway. November retail sales rose 0.8% with a revision of Octobers data up to 0.5% from the previously released 0.2%. In the UK, the Office for National Statistics released Retail Sales data for November that showed sales volumes were up 1.1% in the month, exceeding the 0.4% forecast by the market.

Source link  
Oil Inventories to Show a Draw

Expectations (Apr) are expected to be released with a prior reading of 16.7. This data has been weakening since a reading of 52.0 was recorded in...

Chances of RBA Rate Hike

NZDUSD bucked the trend overnight, as most other currencies managed to retrace some of their declines against the USD. The pair hit fresh...

Consumer Sentiment Index Close to Higher

US Fed Boston President Rosengren is due to deliver the keynote speech on the economic outlook, at the Greater Boston Chamber’s Economic Outlook Breakfast...

Chinese president soothes worries

With US Producer Prices data on the way this afternoon, and predicted to be largely as expected, the morning session will be dominated by central bankers...

Markets fall after more tariffs proposal

Friday's session is expected to be volatile, with Non-Farm Payrolls (13:30 UK Time) ahead and President Trump’s proposal for an additional $100B...

Korea gets exemption on steel tariffs

The US and South Korea have reached agreement on a Trade deal that comes with the added bonus for South Korea of a permanent exemption from...

EU Publishes List of Tariffs on US Goods

Over the weekend, the EU published a list of tariffs on US products in response to the US tariffs on Steel and Aluminium. The total value of EU tariffs...

Consumer Price Index and Housing Starts

Eurozone Consumer Price Index – Core (YoY) (Feb) will be released. The consensus points to an unchanged value of 1%. Consumer Price Index...

USD Weakens as Risk-Off Returns

Yesterday, the US announced Tariffs on Steel and Aluminium, which prompted an outcry from various global leaders and an acceleration in the...

In the past 24 hours Bitcoin has gained 4.1% and reached $9251.04. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -1.4531% and is now at $1.2109. Start trading and making money on Forex today.

In the past 7 days Ethereum has gained 14.23% and is now at $657.108. Have the most popular cryptocurrencies compared online 24/7.

Top Brokers offering Daily Forex Market Reviews

Forex Currencies Forecasts

Top 10 Forex Brokers 2018

# Broker Review
5FIBO GroupFIBO Group82%
8Fort Financial ServicesFort Financial Services67%