Central Bank Rate Decisions This Week
source : Bloomberg
On the back of lower than expected CPI (May) numbers, President Trump calls for the Fed to cut interest rates by "one full point." (i.e 4 rate cuts)
Source: Stocktwits
An intentional leak to give markets further hope?
Source: Adam Taggart @menlobear on X
The Bank of Japan's unrealized losses hit a record ¥28.6 trillion ($198 billion) in Fiscal Year 2024 ending March 31, 2025.
Paper losses from Japanese government bonds TRIPLED from the last year. However, the BOJ's reported net income was ¥2.26 trillion ($16 billion). It can take years until these bonds mature. Source: Global Markets Investor, Bloomberg
The Federal Reserve has now lost a combined $192 Billion over the last 2 years
Source: Barchart, Wolfstreet.com
The People’s Bank of China trimmed the 1-year loan prime rate to 3.0% from 3.1%, and the 5-year LPR to 3.5% from 3.6%.
A slew of state-backed commercial lenders moved to cut their deposit rates by as much as 25 basis points earlier Tuesday. As mentioned by Mo El Erian, the question remains: will this prolonged period of policy incrementalism reach a critical mass that fundamentally alters household sentiment and consumer behaviour? So far, it has failed to do so. Source: Bloomberg, CNBC
The number of Fed rate cuts continue to be revised downwards:
* June 18 (red) now 8% (92% no move) * July 30 (green) now 35% (65% no move) No cut is priced until September 17. And even that cut (blue) is disappearing. It was more than 100% ~10 days ago and is now 66% (34% no move) and continuing to fall. Source: Jim Bianco @biancoresearch
As expected, BoE cut rates by 25bps! (5-4 vote).
It came as Donald Trump hinted a UK-US trade pact was imminent. Some MIXED SIGNALS - Two members (Swati Dhingra and Alan Taylor) preferred to reduce Bank Rate by 0.5 percentage points, to 4%. Two members (Catherine L Mann and Huw Pill) preferred to leave Bank Rate unchanged, at 4.5%.
