Central bank news covering ECB, Bank of England, Bank of Japan, interest rate decisions, and global monetary policy developments.
This commentary argues that the Reserve Bank of India's return to the FCNR(B) swap scheme, despite its controversial history and former Governor Raghuram Rajan's criticism, is a potent measure to boost foreign inflows. It contends that the scheme, now with the RBI fully bearing exchange rate risk, could attract substantial inflows similar to the $26 billion in 2013, supporting India's balance of payments.
The European Central Bank is expected to raise its key interest rate for the first time in almost three years on Thursday, in response to a jump in energy prices caused by the conflict in the Middle East. Economists consider it unlikely that the increase will be the first of many, given the weak state of the eurozone economy.
This commentary argues that the Bank of Canada faces a dilemma between cutting rates to stimulate a sagging economy and holding or hiking due to inflation fueled by the Iran war. It presents economists' views that rates will likely remain on hold through 2026, with potential hikes in 2027.
This commentary argues that European stock traders must adjust their strategies as the European Central Bank begins raising interest rates to counter inflation from the Iran war. It contends that the impact will be uneven across sectors and that investors need to assess the duration of the hiking cycle.