Deciphering Policy Signals in This Week’s Central Bank Speeches

  • Monday, November 13, 2017

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

Although the coming days filled with central bank policymaker speeches may seem pedestrian in comparison to the past several weeks of policy meetings and leadership changes, there will still be plenty of policy signals.

Fed policymakers will look to remain on message—pointing to a December rate hike—as markets face renewed concern about leadership changes at the Fed prompted by the news of Bill Dudley departing his post in NY. ECB policymakers are likely to strike a similar slightly hawkish tone as they justify tapering. RBA policymakers face a different challenge: their economy may be facing downside risks, causing them to take a more neutral position. Canadian policymakers are likely to be similarly neutral as they continue to wait and see how the market reacts to their two rate hikes earlier this year. Both the Norges Bank and Riksbank appear to be following the ECB, despite differing economic conditions; this likely means that both will send neutral market signals pointing to eventual tightening.

Perhaps the most interesting central bank this week is the usually-stoic SNB, where two policymakers are scheduled to speak. Neither is likely to make bold policy pronouncements, but dovish language may be in store.

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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