A top Bank of England official warned the BBC that fast-growing crypto-currency assets might represent a threat to the current banking system. Although Bitcoin is not now owned by much of the wealth of UK families, it is becoming more popular, according to deputy Bank governor Sir Jon Cunliffe. It may have a knock-on impact […]
With the dollar turning into a safe haven during the pandemic, risk appetite has become one of the most crucial elements for the FX market. The other main variable is interest rate differentials. In this piece we examine how much firepower each central bank has unleashed and what that implies for currencies. The Fed has […]
The Reserve Bank of Australia has extended its government bond-buying program as a means of supporting the country’s economy as it continues to emerge from recession, while also keeping pressure on the Australian dollar. RBA Governor, Philip Lowe, has stated that the country’s economic recovery has been stronger than expected, but the economy is expected to operate with significant spare capacity for a prolonged period. The central bank has also stated that it will require significant gains in employment and a return to a tight labor market before interest rates are increased, which is not expected until 2024 at the earliest.
Top central bank leaders said Thursday climate-change risks are an increasingly important consideration in their thinking about their respective economies and financial systems, and that environmental concerns also are increasingly a factor in their monetary policy considerations. Central bank officials must look at climate change issues as they “relate to monetary policy and impact on […]
OTTAWA — A sizable segment of the Canadian population believe inflation is higher than the actual measured rate, and that is partly attributed to a run up in housing prices in major Canadian cities, a senior Bank of Canada official said. Lawrence Schembri, a deputy governor at the central bank, said the central bank must […]
This week, the highest impact economic events will be the Republican National Conference starting on Monday, the August IFO survey for Germany on Tuesday, and the Federal Reserve Chair Jay Powell speaking at the Jackson Hole Symposium on Thursday. Powell’s speech, which will reveal the findings of the Fed’s long-running review on monetary policy, is expected to be the marquee event of the week. Powell is expected to guide inflation expectations higher while keeping nominal yields anchored, but traders will be keen to see how close they are to moving to a more defined forward guidance, and specifically the appetite to move sooner to average inflation targeting.