The Bank of Canada will almost certainly hold policy steady on Wednesday but nearly half of the banks who do business directly with it predict at least one more rate cut this year.
For all the measures India's central bank has taken to increase transparency in policy making, predicting rate moves by Governor Raghuram Rajan is still difficult.
from India Insight:
The Reserve Bank of India kept interest rates unchanged in its bi-monthly review on Tuesday, waiting to assess inflationary pressures and giving banks time to reflect on the central bank’s previous cuts in lending rates.
Despite the Federal Reserve's trillions of dollars in newly printed money, workers' wages and overall U.S. inflation have failed to take off since the recession. Longer-term borrowing costs, from 10-year Treasury yields to 30-year home mortgages, have also compressed without any real signs of reversing. While this has perplexed many economists, transcripts of the U.S. central bank's crisis-fighting meetings in 2009 show that Janet Yellen, then the head of the San Francisco Fed, was prescient in warning colleagues of these very problems.
The Federal Reserve faces two big challenges in the months and years ahead: how to finally "liftoff" after more than six years of rock bottom interest rates, and how to begin drawing down its $4.5-trillion balance sheet after three massive rounds of bond purchases. But, it turns out, those questions were being raised at the U.S. central bank as far back as 2009.
Brazil's central bank's two-day policy meeting kicks off later on Tuesday with all bets placed on a fourth straight interest rate increase, despite growing consensus that the country is headed for its worst economic recession in 25 years.