In an effort to gain a deeper understanding of underlying price dynamics, the South African Reserve Bank (SARB) has introduced two new inflation metrics: the Persistent and Common Component of Inflation (PCCI) and the Supercore measure. These measures will supplement the headline and core inflation data currently published by Statistics South Africa, providing additional insights to inform monetary policy decisions.
Results for: Monetary Policy
Huw Pill, the chief economist at the Bank of England, has indicated that interest rate cuts are now somewhat closer than they were last month. However, he cautioned that the economic outlook has not changed substantially, and there are risks associated with reducing rates prematurely.
The article explores the complex relationship between monetary policy, fiscal deficits, and the overall health of the economy. It highlights the potential dangers of excessive fiscal deficits and argues that a balanced budget is crucial for long-term economic stability. The article also discusses the role of gold and other risk-off assets in times of economic uncertainty.
In this interview, Joey Chew, HSBC’s head of Asia FX Research, shares insights into the outlook for the currency and monetary policy in Asia. Chew discusses the impact of the COVID-19 pandemic, the global economic recovery, and the geopolitical tensions in the region. He also provides his views on the potential for a stronger US dollar and the implications for Asian currencies. This article is essential reading for anyone interested in the latest developments in the Asian currency markets.
Bank of Japan Governor-nominee Kazuo Ueda’s earlier comments have led to a slight decline in the USD/JPY exchange rate. However, subsequent remarks suggest a potential shift in Ueda’s stance.
Newly appointed Bank of Japan Governor Kazuo Ueda stated that none of the recent economic data released has come as a surprise and he remains open to various policy options. His comments indicate a wait-and-see approach, leaving analysts uncertain about potential shifts in monetary policy.
Bank of America predicts the Bank of Japan (BoJ) will maintain its current interest rate target range at 0-0.1% at its upcoming monetary policy meeting on April 26, 2024. The BoJ recently exited its negative interest rate policy and overhauled its monetary framework, and is now assessing the impact of these changes. Governor Ueda has indicated that the bank’s focus is on evaluating the effects of the recent policy modifications on the economy and inflation. The quarterly Outlook Report, Governor Ueda’s post-meeting press conference, and the Summary of Opinions are expected to provide clues about future rate hikes and adjustments to JGB purchases.