Parsing BOC Policy Meeting, G10 Central Bank Chatter

  • Tuesday, May 29, 2018

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

Despite U.S. Memorial Day serving as the unofficial start of summer, central bankers are certainly not taking a vacation this week. Markets will be paying close attention to not only the BOC policy meeting but also speeches by SNB and BOJ policymakers, among others.

Despite increasingly hawkish language from BOC policymakers in recent weeks, this week’s policy meeting is likely to result in a rate hold and signals of an impending hike. Conversely, SNB Chairman Thomas Jordan is likely to sound dovish in an effort to talk down the CHF after a recent spike. BOJ Governor Kuroda may strike more of a middle ground as he tries to avoid spooking markets while providing a timeline for stimulus reductions.

Remarks from Bullard and Bostic at the Fed will likely echo the general effort to signal a June rate hike. Similarly, ECB policymakers are likely to reiterate their desire to taper asset purchases, even if they have no immediate plans to do so. Henry Ohlsson of the Riksbank will speak for the first time in eight months and may signal a more neutral stance than the bank’s recent dovish remarks, though he is unlikely to signal that a rate hike this summer is still a realistic possibility. Finally, while the RBNZ’s financial stability report has a history of talking up the strength of the New Zealand economy, this week’s edition is more likely to sound neutral than hawkish given recent economic weakness.

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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