Markets calm after BoJ and Fed decision. As widely expected by financial markets, the Fed kept rates on hold at its September meeting. The recent
Markets calm after BoJ and Fed decision. As widely expected by financial markets, the Fed kept rates on hold at its September meeting. The recent declaration that two hikes were still possible for 2016 turn out to be wrong. All eyes are now on the December meeting. A hike for the credibility should be the Fed’s next move. Across the Pacific, the Reserve Bank of New Zealand decided to leave rates unchanged in spite of persistent weak inflationary pressure. However, Governor Wheeler emphasized the bank’s strong easing bias and called for a cut in the official cash rate, most likely before the end of the year. In Thailand, in spite of the stronger baht, the central bank is likely to hold rates steady, providing a buying opportunity yield starved investors.
