Data Suggests Three G-10 Rate Holds Likely

  • Monday, June 18, 2018

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The Most Important Central Bank Releases This Week
central bank communications analytics research

The Bank of England, Norges Bank, and Swiss National Bank are all likely to hold rates at their respective policy meetings this week. Despite soft economic data, the BOE is likely to indicate that a rate hike in the coming months remains possible. The Norges Bank is likely to echo the same tone, suggesting a hike later in 2018 is likely. Conversely, the SNB is likely to maintain its dovish posture while enjoying the downward pressure that ECB tapering has put on the CHF.

The Bank of Japan and Reserve Bank of Australia will both release policy meeting minutes this week. The BOJ minutes will likely reflect the dovish tone that led policymakers to revise down inflation expectations yet again. The RBA minutes will likely reflect a more neutral tone, echoing recent plans to stay the course.

Three policymakers are set to speak this week from the Fed, and one from the Bank of Canada. On the heels of last week’s 25bps hike, Williams will likely be the most hawkish Fed speaker with Bostic and Bullard taking a more neutral posture. Lynn Patterson, the only scheduled BOC speaker, will discuss reference rates in a speech that is unlikely to drive sentiment far from the current neutral stance.

This is an abbreviated version of the Cyborg Analyst. The full weekly report contains detailed analysis based on Prattle’s central bank data. Subscribe here.

The Prattle Team

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