Tag Archives: Central Banks

One of the reasons people choose to invest in gold bullion or to buy silver coins is because they are simple and they are finite; basically the opposite of fiat currency. The complexity of fiat-driven markets and infinite possibilities to create money works to the advantage of central banks. . And they particularly like to take advantage when asked by the general public a very obvious question… Central banks are on the defensive over printing too much money during...

Bank of Canada’s Senior Deputy Gov. Carolyn Rogers: We are not where we were in July, but we are a long way from where we need to be Bank has seen early signs monetary policy is working the bank still sees a path to a stop to soft landing, that’s still our objective neutral territory is a range, it’s an estimate, there is no magic formula There has been a lot of central banks speak from the Swiss National Bank to the Federal Reserve to the ECB, and now additional...

Looks at series of models to gauge Swiss francs value; market has to live with some volatility no comment on currency intervention. We don’t rule anything out monetary policy cannot influence explosion and prices in case of a severe shortage the longer inflation last, the greater the risk of a 2nd round of facts having a negative impact central banks need to watch out that fiscal policy does not dictate monetary policy Meanwhile SNB’s Maechler is now joining in...

SNB’s Jordan is on the wires after the ECB hike rates by 75 basis points today: ECB 75 basis point rate hike not fully surprising We must ensure price stability over medium-term Gas or power stoppages would have devastating impact on economy’s Exchange rates play a role in inflation , when big central banks act this helps us You should not be surprised that SNB acts independently It is positive for SNB of major central banks normalize It would not create difficulty...

This via the folks at eFX. Credit Agricole CIB Research argues that it would be premature for the SNB to resume its intervention against CHF strength around current levels. “We note that the wild fluctuations of global bonds, stocks and exchange rates may make it more difficult for market participants to find a “concrete indication” of FX intervention from the data,” CACIB notes. “We further think that following the hawkish shift of its policy outlook in June, it...

It would be easy for those who have decided to buy gold and silver bullion to lose heart over the precious metals, had they seen how prices reacted to Chairman Powell’s comments, last week. However, to do this would be very short-sighted. Whilst Powell may well have signaled that the Fed will stay on this path of tightening this does not mean that they have resolved the issue. Rather, it likely means that the Fed is reacting a little too hard, a little too late and...

Swiss National Bank President Thomas Jordan spoke at the Federal Reserve’s annual Jackson Hole symposium on Saturday. “Structural factors such as the transition to a greener economy, rising sovereign debt worldwide, the demographic transition and ultimately also the fact that globalization appears to have peaked — at least temporarily — could lead to persistently higher inflationary pressure in the coming years” “There are signs that inflation is increasingly...

The US jobs report and ISM data will be key in shaping expectations for the September 21st FOMC meeting. MON: EU Defence Ministers Meeting (1/2), UK Summer Bank Holiday; Australian Retail Sales (Jul), Swedish Trade Balance (Jul). TUE: EU Defence Ministers Meeting (1/2), NBH Policy Announcement; Japanese Unemployment (Jul), German CPI Prelim. (Aug), UK BoE Consumer Credit (Jul), EZ Consumer Confidence Final (Aug), US Consumer Confidence (Aug), JOLTS (Jul). WED:...

On Saturday at the Jackson Hole symposium there will be speakers from the European Central Bank, Swiss National Bank and Bank of Korea. We may get some clues on what’s coming up from the ECB: Powell’s speech at Jackson Hole is the second-most important Saturday’s item of interest (1625 GMT)   [embedded content] Tags:...

This via the folks at eFX. Danske forecast via eFX: “We expect the SNB to hike by 50bp again in September and December to curtail underlying inflation pressures bringing the policy rate to 0.75%. With the SNB broadly following the ECB, we see relative rates as an inferior driver for the cross,” Danske notes. “We continue to forecast the cross to move lower on the back of fundamentals and a tighter global investment environment. We thus lower our overall forecast...