The Boston Fed President says rates are likely to be held for longer. The Bank of Japan’s governor says big yen moves are undesirable. Taiwan’s exports are weaker than expected. The Bank of England is expected to hold rates tonight.
In our bonus deep dive interview, ANZ Chief Economist for Southeast Asia and India Sanjay Mathur recalibrates when Asian central banks might be able to cut, given changing expectations about when and how much the Fed cuts.
5 things to know:
US Treasury yields rose 1-3 basis points and the US dollar firmed after the Boston Fed President said rates would likely be on hold for longer. The yen weakened despite renewed jawboning from the Bank of Japan’s Governor.
The Bank of England’s Monetary Policy Committee meets tonight. The consensus is for rates to be left on hold at 5.25%. ANZ Chief Economist Richard Yetsenga says there should be enough to signal the next move is a cut.
ANZ Chief Economist for Southeast Asia and India Sanjay Mathur says Malaysia’s Bank Negara is expected to stay on hold later today.
Q1 GDP for the Philippines is also due today. The consensus is for 5.9% annual growth, up from 5.5% in the December quarter.
Taiwan’s exports rose less than expected in April, with annual growth of 4.3% less than half the market expectation. However, China trade data due later this week should show a continued upswing, Richard says.
Cheers
Bernard
PS: Catch you tomorrow with reaction to the Bank of England’s rate decision.
