RBA and RBNZ Meet, BOJ Clarifies New Policies

  • Monday, August 6, 2018

Welcome to “The Cyborg Analyst” weekly report by Prattle. This report includes analysis of a variety of subjects in addition to central banking events. Keep an eye out for quantitative insights on publicly traded companies, regulatory bodies, and more in the future. Sign up for free access to Prattle to receive the full Cyborg Analyst report weekly.

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

Although only four of the G-10 currency central banks are active this week amid the typical summer doldrums, two of them—the RBA and RBNZ—are having policy meetings. Both banks are likely to hold rates and issue neutral remarks, though the remarks could skew a bit dovish for the RBA and a touch hawkish for the RBNZ. Neither policy meeting is likely to cause much of a stir.

Policy meetings aside, the biggest market mover of the week could be the BOJ Summary of Opinions from its July meeting, during which policymakers widened the yield target for treasury bonds. This gave policymakers the flexibility to taper—or tighten—within a wider range, and this week’s Summary of Opinions could clarify how policymakers intend to utilize this flexibility.

Finally, new Richmond Fed President Tom Barkin will speak for the first time since assuming the role. Barkin may provide insight into his outlook, but he is unlikely to wander too far from the Fed’s recent neutral tone.

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

The Prattle Team

New Call-to-action