China’s central bank is said to see benchmark rate cut as the last resort

China’s central bank is not yet ready to cut benchmark interest rates to spur the slowing economy, despite cooling inflation and a stronger yuan, which have fanned market expectations of such a move, policy sources told Reuters. But the People’s Bank of China (PBOC) is likely to cut market-based rates and further lower banks’ reserve ratios (RRR) to boost credit growth and reduce firms’ borrowing costs, according to the sources involved in internal policy discussions. “We cannot rule out a (benc


China’s central bank is not yet ready to cut benchmark interest rates to spur the slowing economy, despite cooling inflation and a stronger yuan, which have fanned market expectations of such a move, policy sources told Reuters. But the People’s Bank of China (PBOC) is likely to cut market-based rates and further lower banks’ reserve ratios (RRR) to boost credit growth and reduce firms’ borrowing costs, according to the sources involved in internal policy discussions. “We cannot rule out a (benc
China’s central bank is said to see benchmark rate cut as the last resort Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-21  Authors: jason lee
Keywords: news, cnbc, companies, reduce, risk, chinas, rate, central, policy, cut, sources, bank, pboc, rrr, resort, rates, benchmark


China's central bank is said to see benchmark rate cut as the last resort

China’s central bank is not yet ready to cut benchmark interest rates to spur the slowing economy, despite cooling inflation and a stronger yuan, which have fanned market expectations of such a move, policy sources told Reuters.

But the People’s Bank of China (PBOC) is likely to cut market-based rates and further lower banks’ reserve ratios (RRR) to boost credit growth and reduce firms’ borrowing costs, according to the sources involved in internal policy discussions.

“We cannot rule out a (benchmark) rate cut, but we still need to watch economic data for a few months,” one said. “There is no sufficient reason for cutting benchmark rates if we look at the huge amount of new loans in January.”

China’s trading partners and major central banks are increasingly concerned over how quickly the world’s second-largest economy is decelerating, with investors asking if Beijing needs to speed up or intensify support measures to reduce the risk of a sharper slowdown.

Analysts polled by Reuters expect China’s official growth rate to cool to 6.3 percent in 2019, a 29-year low, and some believe real activity is already much weaker than government data suggest.

But China watchers note the PBOC has many policy tools to choose from before turning to blunter instruments such as a lending rate cut, which would bring down financing costs across the board but risk adding to a mountain of debt.

More RRR cuts have been widely expected in coming quarters after five over the past year, most recently in January. The PBOC has also been guiding money market rates lower in various ways, and offered a slightly better rate on a new medium-term lending programme launched in January.

The PBOC did not immediately respond to Reuters request for comment.


Company: cnbc, Activity: cnbc, Date: 2019-02-21  Authors: jason lee
Keywords: news, cnbc, companies, reduce, risk, chinas, rate, central, policy, cut, sources, bank, pboc, rrr, resort, rates, benchmark


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Fed sees balance sheet reduction ending, notes ‘risks and uncertainties’

Federal Reserve officials discussed at their meeting three weeks ago ending the reduction of bonds on the central bank’s balance sheet before the end of 2019, according to minutes released Wednesday. “Almost all participants thought that it would be desirable to announce before too long a plan to stop reducing the Federal Reserve’s asset holdings later this year. Such an announcement would provide more certainty about the process for completing the normalization of the size of the Federal Reserv


Federal Reserve officials discussed at their meeting three weeks ago ending the reduction of bonds on the central bank’s balance sheet before the end of 2019, according to minutes released Wednesday. “Almost all participants thought that it would be desirable to announce before too long a plan to stop reducing the Federal Reserve’s asset holdings later this year. Such an announcement would provide more certainty about the process for completing the normalization of the size of the Federal Reserv
Fed sees balance sheet reduction ending, notes ‘risks and uncertainties’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-20  Authors: jeff cox
Keywords: news, cnbc, companies, federal, notes, bank, sees, fed, reduction, officials, risks, central, reserves, sheet, market, minutes, balance, ending, uncertainties


Fed sees balance sheet reduction ending, notes 'risks and uncertainties'

Federal Reserve officials discussed at their meeting three weeks ago ending the reduction of bonds on the central bank’s balance sheet before the end of 2019, according to minutes released Wednesday.

“Almost all participants thought that it would be desirable to announce before too long a plan to stop reducing the Federal Reserve’s asset holdings later this year. Such an announcement would provide more certainty about the process for completing the normalization of the size of the Federal Reserve’s balance sheet,” the document said.

Stocks looked for direction after the minutes as the market parsed through the meeting summary.

The minutes showed extensive discussion of market conditions, particularly on the emphasis that Fed actions were having on prices of risky assets like stocks and corporate bonds.

“Bottom line, while the Fed I believe clearly had room for the current pause because of the economic slowdown going on overseas, it should also be clear to everyone that they are mostly beholden to asset prices, both the stock market and credit spreads with that driving policy,” Peter Boockvar, chief investment officer at Bleakley Advisory Group, said in a note.

Market participants have been keyed in on the Fed’s intentions regarding rates as well as the $3.8 trillion in bonds the central bank is holding on its balance sheet. The central bank began reducing the portfolio in October 2017 by allowing a capped level of proceeds to roll off each month, and officials have tried to assure the markets that the process should go on seamlessly.

However, investors have gotten nervous that the Fed would allow the reduction to continue even if financial conditions tightened. The statement from the minutes echoes recent comments from several Fed officials that the program likely will end before the conclusion of the year as bank reserves fall to a level with which regulators and financial institutions feel comfortable.


Company: cnbc, Activity: cnbc, Date: 2019-02-20  Authors: jeff cox
Keywords: news, cnbc, companies, federal, notes, bank, sees, fed, reduction, officials, risks, central, reserves, sheet, market, minutes, balance, ending, uncertainties


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Fed sees balance sheet reduction ending, notes ‘risks and uncertainties’

Federal Reserve officials discussed at their meeting three weeks ago ending the reduction of bonds on the central bank’s balance sheet before the end of 2019, according to minutes released Wednesday. “Almost all participants thought that it would be desirable to announce before too long a plan to stop reducing the Federal Reserve’s asset holdings later this year. Such an announcement would provide more certainty about the process for completing the normalization of the size of the Federal Reserv


Federal Reserve officials discussed at their meeting three weeks ago ending the reduction of bonds on the central bank’s balance sheet before the end of 2019, according to minutes released Wednesday. “Almost all participants thought that it would be desirable to announce before too long a plan to stop reducing the Federal Reserve’s asset holdings later this year. Such an announcement would provide more certainty about the process for completing the normalization of the size of the Federal Reserv
Fed sees balance sheet reduction ending, notes ‘risks and uncertainties’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-20  Authors: jeff cox
Keywords: news, cnbc, companies, federal, notes, bank, sees, fed, reduction, officials, risks, central, reserves, sheet, market, minutes, balance, ending, uncertainties


Fed sees balance sheet reduction ending, notes 'risks and uncertainties'

Federal Reserve officials discussed at their meeting three weeks ago ending the reduction of bonds on the central bank’s balance sheet before the end of 2019, according to minutes released Wednesday.

“Almost all participants thought that it would be desirable to announce before too long a plan to stop reducing the Federal Reserve’s asset holdings later this year. Such an announcement would provide more certainty about the process for completing the normalization of the size of the Federal Reserve’s balance sheet,” the document said.

Stocks looked for direction after the minutes as the market parsed through the meeting summary.

The minutes showed extensive discussion of market conditions, particularly on the emphasis that Fed actions were having on prices of risky assets like stocks and corporate bonds.

“Bottom line, while the Fed I believe clearly had room for the current pause because of the economic slowdown going on overseas, it should also be clear to everyone that they are mostly beholden to asset prices, both the stock market and credit spreads with that driving policy,” Peter Boockvar, chief investment officer at Bleakley Advisory Group, said in a note.

Market participants have been keyed in on the Fed’s intentions regarding rates as well as the $3.8 trillion in bonds the central bank is holding on its balance sheet. The central bank began reducing the portfolio in October 2017 by allowing a capped level of proceeds to roll off each month, and officials have tried to assure the markets that the process should go on seamlessly.

However, investors have gotten nervous that the Fed would allow the reduction to continue even if financial conditions tightened. The statement from the minutes echoes recent comments from several Fed officials that the program likely will end before the conclusion of the year as bank reserves fall to a level with which regulators and financial institutions feel comfortable.


Company: cnbc, Activity: cnbc, Date: 2019-02-20  Authors: jeff cox
Keywords: news, cnbc, companies, federal, notes, bank, sees, fed, reduction, officials, risks, central, reserves, sheet, market, minutes, balance, ending, uncertainties


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Japan’s central bank says it’s ready to ramp up stimulus if a strong yen derails inflation target

Bank of Japan Governor Haruhiko Kuroda said on Tuesday the central bank was ready to ramp up stimulus if sharp yen rises hurt the economy and derail the path towards achieving its 2 percent inflation target. “If (currency moves) are having an impact on the economy and prices, and if we consider it necessary to achieve our price target, we’ll consider easing policy,” he said. Kuroda made the remarks in response to a question by an opposition lawmaker on whether the BOJ had the necessary tools to


Bank of Japan Governor Haruhiko Kuroda said on Tuesday the central bank was ready to ramp up stimulus if sharp yen rises hurt the economy and derail the path towards achieving its 2 percent inflation target. “If (currency moves) are having an impact on the economy and prices, and if we consider it necessary to achieve our price target, we’ll consider easing policy,” he said. Kuroda made the remarks in response to a question by an opposition lawmaker on whether the BOJ had the necessary tools to
Japan’s central bank says it’s ready to ramp up stimulus if a strong yen derails inflation target Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-19  Authors: akio kon, bloomberg, getty images
Keywords: news, cnbc, companies, remarks, inflation, tools, policy, central, yen, derails, sharp, ramp, economy, ready, japans, target, stimulus, easing, boj, impact, strong


Japan's central bank says it's ready to ramp up stimulus if a strong yen derails inflation target

Bank of Japan Governor Haruhiko Kuroda said on Tuesday the central bank was ready to ramp up stimulus if sharp yen rises hurt the economy and derail the path towards achieving its 2 percent inflation target.

But he said the BOJ would carefully weigh the benefits and costs of any further policy easing, suggesting that the hurdle for topping up stimulus would be high given how financial institutions’ profits have been hurt by years of near-zero interest rates.

“Currency moves could have an impact on the economy and prices, so it’s crucial we take into account these factors when guiding monetary policy,” Kuroda told parliament.

“If (currency moves) are having an impact on the economy and prices, and if we consider it necessary to achieve our price target, we’ll consider easing policy,” he said.

Kuroda made the remarks in response to a question by an opposition lawmaker on whether the BOJ had the necessary tools to boost stimulus to counter the pressure from a sharp yen rise.

The dollar received a mild lift versus the yen after Kuroda’s remarks. It stood little changed at 110.655 yen after dipping as low as 110.45 earlier in the day.

Kuroda repeated that possible monetary easing tools the BOJ could deploy included cutting short- and long-term interest rates, expanding asset buying or accelerating the pace of money printing.

“Whatever we do, however, we need to carefully balance the benefits and the costs of the step such as the impact on financial intermediation and market functioning.”


Company: cnbc, Activity: cnbc, Date: 2019-02-19  Authors: akio kon, bloomberg, getty images
Keywords: news, cnbc, companies, remarks, inflation, tools, policy, central, yen, derails, sharp, ramp, economy, ready, japans, target, stimulus, easing, boj, impact, strong


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France is well placed to take the ECB’s top job after Draghi

Undoubtedly the biggest question for the future of the euro this year is who’s going to be the next president of the European Central Bank (ECB). President Mario Draghi ends his eight-year mandate in October and market players are anxious to know what direction the central bank will take when his tenure finishes. European officials have told CNBC that a French candidate is well placed to get the top job, but much depends on the upcoming European elections and the subsequent distribution of roles


Undoubtedly the biggest question for the future of the euro this year is who’s going to be the next president of the European Central Bank (ECB). President Mario Draghi ends his eight-year mandate in October and market players are anxious to know what direction the central bank will take when his tenure finishes. European officials have told CNBC that a French candidate is well placed to get the top job, but much depends on the upcoming European elections and the subsequent distribution of roles
France is well placed to take the ECB’s top job after Draghi Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: silvia amaro, alex kraus, bloomberg, getty images, eric piermont, afp, krisztian bocsi
Keywords: news, cnbc, companies, placed, ecbs, undoubtedly, france, told, job, whos, upcoming, central, tenure, bank, draghi, european


France is well placed to take the ECB's top job after Draghi

Undoubtedly the biggest question for the future of the euro this year is who’s going to be the next president of the European Central Bank (ECB).

President Mario Draghi ends his eight-year mandate in October and market players are anxious to know what direction the central bank will take when his tenure finishes. European officials have told CNBC that a French candidate is well placed to get the top job, but much depends on the upcoming European elections and the subsequent distribution of roles across the EU.

“In principle, (France) is well placed (to get the ECB presidency),” a European official with knowledge of the situation but prefered to remain anonymous due to the sensitivity of the issue, told CNBC over the phone.


Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: silvia amaro, alex kraus, bloomberg, getty images, eric piermont, afp, krisztian bocsi
Keywords: news, cnbc, companies, placed, ecbs, undoubtedly, france, told, job, whos, upcoming, central, tenure, bank, draghi, european


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Santander’s shock bond move is controversial but not contagious, analysts say

These bonds are slightly riskier than a normal corporate bond as they convert into equity when the buffer levels of a bank fall below a certain ratio. Thus they make the holder lose cash in times of financial stress but can help keep a bank steady at the same time. In the aftermath of the 2008 financial crisis, the Bank of International Settlements — known as the central bank of central banks — made it necessary for banks to hold CoCo bonds, which are officially called additional tier 1 (AT1) ca


These bonds are slightly riskier than a normal corporate bond as they convert into equity when the buffer levels of a bank fall below a certain ratio. Thus they make the holder lose cash in times of financial stress but can help keep a bank steady at the same time. In the aftermath of the 2008 financial crisis, the Bank of International Settlements — known as the central bank of central banks — made it necessary for banks to hold CoCo bonds, which are officially called additional tier 1 (AT1) ca
Santander’s shock bond move is controversial but not contagious, analysts say Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: spriha srivastava, scott mlyn, ralph orlowski, getty images
Keywords: news, cnbc, companies, bonds, banks, financial, analysts, crisis, option, central, known, bank, say, bond, shock, contagious, maturity, controversial, santanders, coco


Santander's shock bond move is controversial but not contagious, analysts say

These bonds are slightly riskier than a normal corporate bond as they convert into equity when the buffer levels of a bank fall below a certain ratio. Thus they make the holder lose cash in times of financial stress but can help keep a bank steady at the same time.

In the aftermath of the 2008 financial crisis, the Bank of International Settlements — known as the central bank of central banks — made it necessary for banks to hold CoCo bonds, which are officially called additional tier 1 (AT1) capital. They have what’s known as a “perpetual maturity.” This means that they don’t have to be repaid but they come with a call option — or an option for the issuer to repay the investor before the end of the maturity date.

Banks generally exercise this option to send a message to the markets that their liquidity position is strong enough to deal with a crisis situation. Santander’s decision this week may have brought back memories of when Deutsche Bank decided not to call a CoCo during the 2008 crash.

According to data from research firm Refinitiv, about $13.5 billion worth of CoCos are redeemable this year. Of this, $8.4 billion are from European banks.


Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: spriha srivastava, scott mlyn, ralph orlowski, getty images
Keywords: news, cnbc, companies, bonds, banks, financial, analysts, crisis, option, central, known, bank, say, bond, shock, contagious, maturity, controversial, santanders, coco


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Fed’s Powell puts focus on spreading benefits of a strong economy

Federal Reserve Chairman Jerome Powell said the U.S. economy looks strong, but the central bank is continuing to find ways to fight poverty. Speaking on Tuesday in Mississippi, Powell said the central bank is looking at a number of ways to help rural communities, with a particular focus on banking and finance for areas of need. “Today, data at the national level show a strong economy. As he has in the recent past, the Fed chair focused on the importance of getting more Americans involved in the


Federal Reserve Chairman Jerome Powell said the U.S. economy looks strong, but the central bank is continuing to find ways to fight poverty. Speaking on Tuesday in Mississippi, Powell said the central bank is looking at a number of ways to help rural communities, with a particular focus on banking and finance for areas of need. “Today, data at the national level show a strong economy. As he has in the recent past, the Fed chair focused on the importance of getting more Americans involved in the
Fed’s Powell puts focus on spreading benefits of a strong economy Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-12  Authors: jeff cox, adam jeffery
Keywords: news, cnbc, companies, world, economy, feds, bank, areas, focus, puts, ways, powell, strong, remarks, benefits, rural, central, spreading


Fed's Powell puts focus on spreading benefits of a strong economy

Federal Reserve Chairman Jerome Powell said the U.S. economy looks strong, but the central bank is continuing to find ways to fight poverty.

Speaking on Tuesday in Mississippi, Powell said the central bank is looking at a number of ways to help rural communities, with a particular focus on banking and finance for areas of need.

“Today, data at the national level show a strong economy. Unemployment is near a half-century low, and economic output is growing at a solid pace. But we know that prosperity has not been felt as much in some areas, including many rural places,” he said in remarks to the Hope Enterprise Corporation Rural Policy Forum in Itta Bena.

As he has in the recent past, the Fed chair focused on the importance of getting more Americans involved in the working population. His remarks did not touch on monetary policy.

The U.S. labor force participation rate is at 63.2 percent currently, about half a percentage point above where it was at the beginning of 2019, but lags behind most other industrialized countries. The nation ranked 101st in the world in that category, according to 2018 World Bank statistics.


Company: cnbc, Activity: cnbc, Date: 2019-02-12  Authors: jeff cox, adam jeffery
Keywords: news, cnbc, companies, world, economy, feds, bank, areas, focus, puts, ways, powell, strong, remarks, benefits, rural, central, spreading


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Fed’s Powell puts focus on spreading benefits of a strong economy

Federal Reserve Chairman Jerome Powell said the U.S. economy looks strong, but the central bank is continuing to find ways to fight poverty. Speaking on Tuesday in Mississippi, Powell said the central bank is looking at a number of ways to help rural communities, with a particular focus on banking and finance for areas of need. “Today, data at the national level show a strong economy. As he has in the recent past, the Fed chair focused on the importance of getting more Americans involved in the


Federal Reserve Chairman Jerome Powell said the U.S. economy looks strong, but the central bank is continuing to find ways to fight poverty. Speaking on Tuesday in Mississippi, Powell said the central bank is looking at a number of ways to help rural communities, with a particular focus on banking and finance for areas of need. “Today, data at the national level show a strong economy. As he has in the recent past, the Fed chair focused on the importance of getting more Americans involved in the
Fed’s Powell puts focus on spreading benefits of a strong economy Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-12  Authors: jeff cox, adam jeffery
Keywords: news, cnbc, companies, focus, remarks, world, strong, powell, benefits, economy, spreading, rural, central, puts, areas, bank, ways, feds


Fed's Powell puts focus on spreading benefits of a strong economy

Federal Reserve Chairman Jerome Powell said the U.S. economy looks strong, but the central bank is continuing to find ways to fight poverty.

Speaking on Tuesday in Mississippi, Powell said the central bank is looking at a number of ways to help rural communities, with a particular focus on banking and finance for areas of need.

“Today, data at the national level show a strong economy. Unemployment is near a half-century low, and economic output is growing at a solid pace. But we know that prosperity has not been felt as much in some areas, including many rural places,” he said in remarks to the Hope Enterprise Corporation Rural Policy Forum in Itta Bena.

As he has in the recent past, the Fed chair focused on the importance of getting more Americans involved in the working population. His remarks did not touch on monetary policy.

The U.S. labor force participation rate is at 63.2 percent currently, about half a percentage point above where it was at the beginning of 2019, but lags behind most other industrialized countries. The nation ranked 101st in the world in that category, according to 2018 World Bank statistics.


Company: cnbc, Activity: cnbc, Date: 2019-02-12  Authors: jeff cox, adam jeffery
Keywords: news, cnbc, companies, focus, remarks, world, strong, powell, benefits, economy, spreading, rural, central, puts, areas, bank, ways, feds


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Trade friction, growth worries keep dollar near 2019 highs

The dollar held steady versus its peers on Tuesday, hovering close to its 2019 high as U.S.-Sino trade tensions and global growth worries underpinned the greenback’s safe-haven appeal. “The dollar is benefiting from the investor nervousness around the trade talks,” said Sim Moh Siong, currency strategist at Bank of Singapore. The dollar index was steady at 97.04, after advancing 0.45 percent in the previous session, its largest percentage gain since Jan. 24. The single currency was relatively un


The dollar held steady versus its peers on Tuesday, hovering close to its 2019 high as U.S.-Sino trade tensions and global growth worries underpinned the greenback’s safe-haven appeal. “The dollar is benefiting from the investor nervousness around the trade talks,” said Sim Moh Siong, currency strategist at Bank of Singapore. The dollar index was steady at 97.04, after advancing 0.45 percent in the previous session, its largest percentage gain since Jan. 24. The single currency was relatively un
Trade friction, growth worries keep dollar near 2019 highs Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-12  Authors: matt cardy, getty images
Keywords: news, cnbc, companies, highs, worries, central, friction, steady, euro, growth, talks, global, currency, near, week, trade, bank, dollar, 2019


Trade friction, growth worries keep dollar near 2019 highs

The dollar held steady versus its peers on Tuesday, hovering close to its 2019 high as U.S.-Sino trade tensions and global growth worries underpinned the greenback’s safe-haven appeal.

Investors are focusing on high level trade talks in China this week where Washington is expected to keep pressing Beijing on long-standing demands that it make sweeping structural reforms to protect American companies’ intellectual property, to end policies aimed at forcing the transfer of technology to Chinese companies, and curb industrial subsidies.

“The dollar is benefiting from the investor nervousness around the trade talks,” said Sim Moh Siong, currency strategist at Bank of Singapore.

“Beyond its safe haven appeal, the dollar is still the highest-yielding currency in the developed world and with all major central banks turning dovish, the greenback seems relatively attractive.”

This week’s talks come as the world’s two largest economies try to hammer out a deal before a March 1 deadline, after which U.S. tariffs on $200 billion worth of Chinese imports are scheduled to increase to 25 percent from 10 percent.

Financial markets have been roiled by the trade tensions over the past year, with business sentiment taking a hit around the world as the fallout of the .S.-China dispute disrupted factory activity and hurt global growth.

The greenback rose 0.1 percent against the yen to 110.47 and was a touch higher versus the Swiss franc at 1.0040.

The dollar index was steady at 97.04, after advancing 0.45 percent in the previous session, its largest percentage gain since Jan. 24. The index has risen for eight straight sessions, mainly thanks to a tumbling euro, which has the largest weighting in the index.

The single currency was relatively unchanged at $1.1278 in Asian trade, having lost nearly half a percent on Monday. The euro has weakened for six consecutive sessions, and traders expect further losses now that the crucial psychological support of $1.13 has been broken.

“The next level of support for EUR/USD is the November low of 1.1215 which should be tested quickly,” said Kathy Lien, managing director of currency strategy at BK Asset Management.

The European Central Bank is expected to maintain a highly accommodative monetary policy this year as growth slows in the euro zone and inflation stays low. Last week, the European Commission sharply cut its forecasts for euro zone growth for this year and next.

Investors are expecting stimulus from the ECB in the form of a cheap loan scheme for banks in the coming months.

Elsewhere, sterling was 0.15 percent firmer at $1.2869, after tumbling 0.75 percent in the previous session. Analysts expect the British pound to remain volatile due to the uncertainty surrounding Brexit.

The British parliament is set to hold a debate on Brexit on Feb. 14 where Prime Minister Theresa May is seeking changes to her deal with Brussels after it was rejected by a record majority in parliament last month.

The Australian dollar, often considered a gauge of global risk appetite, gained around 0.3 percent to $0.7083 as risk sentiment improved on expectations that U.S. lawmakers had reached a tentative deal on border security funding that would avert another partial government shutdown due to start on Saturday.

Traders expect the Aussie to remain under pressure after Reserve Bank of Australia Governor Philip Lowe tempered a long-held tightening bias last week, saying an easing might be just as likely as a hike.

The kiwi dollar was steady at $0.6730. New Zealand’s central bank is expected to leave interest rates unchanged at its policy meeting on Wednesday but may adopt a more dovish tone and cut forecasts, in line with other major central banks as rising global economic risks cloud the outlook.


Company: cnbc, Activity: cnbc, Date: 2019-02-12  Authors: matt cardy, getty images
Keywords: news, cnbc, companies, highs, worries, central, friction, steady, euro, growth, talks, global, currency, near, week, trade, bank, dollar, 2019


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India’s central bank could see reasons for a surprise rate cut, economists say

The Reserve Bank of India could cut its benchmark interest rate at which it lends to banks on Thursday, due to shifting economic conditions, an economist told CNBC. That call may surprise some because the RBI, in its last monetary policy statement in December, reiterated its stance of “calibrated tightening” — meaning there would not be a rate cut in the near term. At the moment, the central bank’s policy repo rate is at 6.5 percent. Jeff Ng, chief economist for Asia at Continuum Economics, mirr


The Reserve Bank of India could cut its benchmark interest rate at which it lends to banks on Thursday, due to shifting economic conditions, an economist told CNBC. That call may surprise some because the RBI, in its last monetary policy statement in December, reiterated its stance of “calibrated tightening” — meaning there would not be a rate cut in the near term. At the moment, the central bank’s policy repo rate is at 6.5 percent. Jeff Ng, chief economist for Asia at Continuum Economics, mirr
India’s central bank could see reasons for a surprise rate cut, economists say Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-07  Authors: saheli roy choudhury, punit paranjpe, afp, getty images
Keywords: news, cnbc, companies, economic, reasons, indias, bank, policy, rbi, economists, rate, central, economics, cut, told, today, stance, surprise, inflation, say


India's central bank could see reasons for a surprise rate cut, economists say

The Reserve Bank of India could cut its benchmark interest rate at which it lends to banks on Thursday, due to shifting economic conditions, an economist told CNBC.

That call may surprise some because the RBI, in its last monetary policy statement in December, reiterated its stance of “calibrated tightening” — meaning there would not be a rate cut in the near term. At the moment, the central bank’s policy repo rate is at 6.5 percent.

“My base case is for a cut today, but even if that doesn’t happen, I think it just gets delayed to April,” Priyanka Kishore, head of India and Southeast Asia economics at Oxford Economics, told CNBC’s “Squawk Box” on Thursday.

Kishore said there were several factors that could lead the RBI to reverse its policy stance: the downtrend in headline inflation, a softening economic growth outlook, and a fragile shadow banking sector where lending abilities of the non-banking financial companies have been reduced.

In December, India’s headline inflation dropped to an 18-month low of 2.19 percent, according to Reuters. The RBI’s medium-term inflation target is between 2 and 6 percent, so the December number was at the tail end of the range.

“If I just look at the economic backdrop, then yes, a cut is justified,” Kishore said.

Jeff Ng, chief economist for Asia at Continuum Economics, mirrored Kishore’s view, saying he also expected a rate cut on Thursday.

“The slowing inflation trend gives reason enough for the central bank to start thinking of cutting rates now,” he told CNBC’s “Capital Connection.”

“Cutting in April will be too close to the (general) election so we believe that having the rate cut today will help support the domestic growth,” he added.


Company: cnbc, Activity: cnbc, Date: 2019-02-07  Authors: saheli roy choudhury, punit paranjpe, afp, getty images
Keywords: news, cnbc, companies, economic, reasons, indias, bank, policy, rbi, economists, rate, central, economics, cut, told, today, stance, surprise, inflation, say


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