Friday’s US Personal Income and Outlays report for December delivered a positive update on the US economy. On the growth side, the data confirm the signal from the Q4 GDP release that consumer spending continues to power…
According to BCA Research’s The Bank Credit Analyst service, there are two important flaws in the market’s “Goldilocks” narrative. First, investors are assuming inflation will fully return to target…
Low inflation argues for the Fed to move relatively quickly toward rate cuts. Continued above-trend GDP growth poses a risk to this view, but leading indicators point to slower growth in the coming quarters.
We look at the implications for FX from the slew of central bank meetings this week.
Government bond yields rallied and yield curves steepened across the Eurozone on Thursday following a less hawkish than anticipated tone from the ECB. As expected, the central bank kept policy rates unchanged and reiterated that…
Chinese policymakers have ramped up their efforts to support the economy and financial markets over the past few days. On Wednesday, the People’s Bank of China (PBoC) announced that on February 5 it will cut the reserve…
The Bank of Canada (BoC) kept rates steady at yesterday’s monetary policy meeting, leaving its policy rate at 5%. The central bank presented updated economic projections in a new Monetary Policy Report (MPR), which were…
According to BCA Research’s China Investment Strategy service, the current Pledged Supplementary Lending (PSL) program will provide much less support to the housing market and construction activity than the 2015-2018…
Results of the ECB’s quarterly Bank Lending Survey suggest that the tight monetary policy stance is still weighing on the Eurozone economy. Banks tightened credit standards for businesses and consumers further in Q4…