China’s Central Bank Implements Reverse Repo Operations to Maintain Liquidity
It was announced by China’s central bank on Monday that outright reverse repurchase agreements amounting to 1.7 trillion yuan had been conducted throughout the month of January. The People’s Bank of China (PBOC) indicated that these repo operations had been carried out with the objective of ensuring that liquidity within the banking system remained at […]
Market Optimism Reignites Amid Central Bank Speculations and Tech Surge
In a surprising twist of market sentiment, the adage of “bad news is good news” has resurfaced, as soft economic indicators have sparked hopes that central banks might be scaling back their interest rate hikes. This, in turn, has prompted investors to flock towards riskier assets. However, cautious eyes are also fixed on the Federal […]
Inflation instils fear in Central banks that attempt to cope
Central bankers, who were once proponents of maintaining an aura of ambiguity, are now attempting to shift away from the predictability they have fostered over the past 15 years through explicit guidance on their monetary policy intentions. They seek to return to a period when policy decisions were less predetermined, allowing for surprises and adjustments […]
Swiss companies are not hoarding cash
A Swiss National Bank (SNB) survey released stated that the Swiss companies are not stockpiling cash in their strongrooms and offices to avoid being hit by negative interest rates. The SNB has charged commercial banks a negative rate of minus 0.75% since January 2015. This is as a part of its strategy to weaken demand for the safe-haven […]