Central Bank Watch
50-Basis Point Central Bank Rate Hike in Canada and More Tightening to Come
October 26, 2022
Today’s 50-basis point increase of the Bank of Canada‘s overnight rate target to 3.75% follows five consecutive hikes since March totaling three percentage points. More rate hikes will follow, and quantitative tightening to reverse some of the balance sheet growth during the pandemic will also continue. Although indicators of long-term expected inflation remain fairly well-anchored, […] More
Central Bank Watch
Kazakhstan, Tajikistan, and Namibia Central Bank Rate Changes
October 26, 2022
Officials at the National Bank of Kazakhstan raised their policy interest rate by 150 basis points to 16.0%, which is more than a 7-year high and which follows seven increases between July 2021 and July 2022 totaling 550 basis points. CPI inflation in Kazakhstan accelerated to a 75-month high of 17.7% in September from 16.1% […] More
New Overnight Developments Abroad - Daily Update
Convergence of Fed-ECB Interest Rate Biases Sends Dollar Lower
October 26, 2022
The dollar has prospered throughout 2022 largely because the Federal Reserve had been seen as more aggressive in raising interest rates than the European Central Bank and other central banks. Today’s main market theme is that perhaps the monetary policy gap will not be as wide as thought previously. The ECB Governing Council will likely […] More
