Whiffs of interest rate cuts in Brazil

March 30, 2016

Brazilian Central bank chief Alexandre Tombini leaves the Economic Affairs Committee of the Senate in Brasilia December 16, 2014. Tombini repeated on Tuesday that the bank's forex intervention program has met its goals and that the current stock of swaps has fulfilled businesses' demand for currency protection. The comments raised doubts about the continuity of the bank's currency intervention into 2015. Tombini clarified, however, that the bank is currently deciding on new terms for the program that will take effect as of next year. His comments were not enough to ease investors' concerns. The real weakened further after he spoke, trading at 2.781 per dollar, nearly 2 percent weaker, as the market expected more details on the program that currently sells $200 million worth of currency swaps per day. REUTERS/Joedson Alves (BRAZIL - Tags: BUSINESS POLITICS HEADSHOT) - RTR4I9C8 As impeachment of President Dilma Rousseff grows more likely, chances are rising that Brazil’s central bank may also go under new management in a matter of months.

Federal Reserve’s loss is Bank of Canada’s gain

March 3, 2016

The Federal Reserve Bank of San Francisco produces some of the U.S. central bank’s best research on labor markets and monetary policy. And it’s from there that the Bank of Canada plucked its newest deputy governor,

Not all Fed policymakers sing from the same songbook

February 18, 2016

San Francisco Fed President John Williams on Thursday said he still thinks gradual interest-rate hikes are the “best course” (http://reut.rs/1RaUTa9), a view that fails to harmonize with that of fellow Fed policymaker James Bullard, president of the St. Louis Fed who said late Wednesday further rate hikes would be “unwise” (http://reut.rs/1XAnEjh)

Indian central bank to hold its horses while others bolt

February 15, 2016

A member of the Sikh Nihang warrior sect, mounts two racing horses during the annual "Rural Olympics" on February 22 in the village of Kilaraipur in India's northern state of Punjab. The three-day festival, in its 55th year, began on February 21. - RTXHNV1

Financial markets and borrowers rooting for the Reserve Bank of India to ease policy this year could be in for a disappointment – in stark contrast to 2015 when it lopped 125 basis points off the repo rate.

Reserve Bank of India may cut rates even more than expected this year

January 20, 2016

Reserve Bank of India (RBI) Governor Raghuram Rajan attends a news conference in Mumbai, India, December 1, 2015. REUTERS/Shailesh Andrade - RTX1WLY7

The Reserve Bank of India is widely expected to cut interest rates just once in 2016, as most analysts see retail inflation rising slightly above the central bank’s target, but there is a decent chance it could cut more aggressively, as it did last year.

Fed’s Williams preps new Tee-shirt after rate hike

December 18, 2015

San Francisco Federal Reserve President John Williams earlier this year got so sick of answering reporters’ questions about when the U.S. central bank would raise rates that he had his son design a Tee-shirt that he could just give out.

Potholes could be dead ahead in the road soon after Fed rate hike

November 20, 2015

Patches on top of patches covering potholes litter a road in Sonoma County, California, May 9, 2013. Harrison, a local resident and attorney, is part of a grass-roots campaign to fix the crumbling roads of Sonoma County, which is struggling with the same type of government financial crisis that has driven California cities such as Stockton and San Bernardino into bankruptcy. Picture taken May 9, 2013.   REUTERS/Beck Diefenbach   (UNITED STATES - Tags: BUSINESS TRAVEL) - RTX1053C

The Federal Reserve’s planned smooth and gradual rate hike path may be bumpier than anticipated if U.S. economic growth over the next several months and punishingly cold winter weather follow a well-established recent pattern.

With such similar inflation, how far behind the Fed can the BoE be?

November 18, 2015

RTR4OY3Z.jpgNot long ago, the big debate was over who would raise rates first, the U.S. Federal Reserve or the Bank of England. Now with the Fed giving clear signals it’s on the brink of hiking and the BoE appearing to be pushing that day further off into the future, one could naturally conclude that the inflation outlook in both economies is vastly different.

Exports continue to give cold shoulder to Bank of Canada’s Poloz

November 13, 2015

Ever since Bank of Canada Governor Stephen Poloz took office, he has preached the merits of a weaker currency for Canadian exports. But the roughly 30 percent fall in the dollar since then has failed to coax an export-based revival in Canada.

Fiscal spending the only way out for Canada’s struggling economy?

October 29, 2015

Liberal Party leader Justin Trudeau waves while accompanied by his wife Sophie Gregoire as he gives his victory speech after Canada's federal election in MontrealAfter sailing relatively smoothly through the choppy waters of the financial crisis and its after-effects, the Canadian economy is finally getting caught up in the global economic slowdown.