Fed Singing a Hawkish Tune, ECB Humming Along

  • Monday, June 11, 2018

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

Although this week contains relatively few central bank communications, policy meetings from the Fed, ECB, and BOJ are all likely to move markets. All three banks have become more hawkish in recent weeks, though the Fed is the only one likely to actually hike rates this week.

ECB policymakers are struggling to balance hawkish pressures to end QE with the reality that the Eurozone economy has become accustomed to ECB stimulus. It is likely that ECB policymakers will balance these competing pressures by clarifying a timeline for tapering asset purchases.

The BOJ is unlikely to alter policy as the recent hawkish shift in rhetoric appears to be a concerted effort to talk up the country’s economic strength despite underlying weakness, especially relative to other major economies.

Two RBA policymakers are slated to speak this week and will likely reiterate the bank’s stance that Australia’s economy has ample room to grow and that as long as inflation remains constrained they are unlikely to change policy in the near term.

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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