Fed, BOJ, RBA Likely to Signal Potential Stimulus

  • Monday, July 15, 2019

Welcome to “The Cyborg Analyst” by Prattle. This report provides weekly, quantitative insights on G-10 currency central banks.

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After last week’s torrent of communications, especially from Fed policymakers, this week appears relatively quiet by comparison. Nevertheless, three Fed policymakers will deliver a series of dovish speeches that will only reinforce Chairman Powell’s signal of a likely rate cut in July. Benoit Coeure is likely to similarly reinforce the ECB’s recent dovish signals, while surveys from the BOJ and BOE are likely to reflect relative weakness in both the Japanese and UK economies. Of the two, the BOJ remains more likely to engage in near term stimulus, while the BOE withholds dry powder in case of a hard Brexit. The RBA minutes will clarify that further rate cuts remain likely, even if they are not immediate.

This is an abbreviated version of the Cyborg Analyst. The full weekly report contains detailed analysis based on Prattle’s Central Bank Analytics.