CENTRAL BANK WATCH

CURRENT SITUATION

NEXT MEETING

EXPECTATION

UNITED STATES:

FOMC

The Fed funds rate is at 0%-0.25%. The Fed initiated a new round of MBS asset purchases and extended its rate guidance on September 13, 2012.

S

Jan. 26 Mar. 13

We expect the Fed to keep the funds rate near 0% through mid-2016, and to continue asset purchases through mid-2015.

JAPAN: BoJ Monetary Policy Board

The overnight call rate is at 0%-0.1%. The BoJ expanded the asset purchase programme to a total size of JPY91trn on October 30, 2012.

Jan. 22

We expect the BoJ to keep the policy rate near 0% through 2016, and to continue with APP until core inflation reaches 1%.

EURO AREA: ECB Governing Council

The refi/deposit rates are at 0.75%/0.00%.The ECB announced the OMT programme for conditional purchases of Euro-area sovereign bonds in September 2012.

Jan 10 Feb. 7

We expect the ECB to keep policy rates on hold at least through mid-2015. Future policy depends on the OMT programme’s success in repairing the monetary policy transmission mechanism.

UK: BoE Monetary Policy Committee

The BoE policy rate is currently at 0.5%. An extra £50bn of asset purchases was announced in July 2012, bringing the current total to £375bn.

Jan. 10 Feb. 6

We expect the BoE to keep the policy rate unchanged at least through mid-2015.