Economy 2 MIN READ

BUZZ-COMMENT-With 14 cenbank decisions in 4 days, expect divergence/volatility

December 9, 2021By Reuters

There are 14 central bank monetary policy decisions between Dec. 14 and Dec. 17 with several likely to diverge from the Federal Reserve’s plans, fuelling volatility.

As the Fed begins its two-day meeting on Dec. 14, Hungary and Chile also have meetings. Both have been aggressively raising rates and further hikes seem likely ahead of a Fed statement that’s likely to outline U.S. rate rises next year.

Indonesia, which has held rates at a record low to support the economy, may be the first to buck the Fed’s lead and keep rates steady when it announces its policy decision at 0700 GMT on Dec. 15, hours ahead of the Fed’s statement at 1900 GMT.

A day later, the Philippine central bank’s resolve to hold rates at a record low will be tested, with a decision at 0700 GMT, kicking off the busiest day for rate decisions globally and swiftly followed by Taiwan at 0800 GMT.

The Swiss National Bank’s statement is due at 0830 GMT on Dec. 16 with traders seeking answers about the lack of intervention. At 0900 GMT Norway is expected to hike, Turkey is seen cutting rates at 1100 GMT, while the risk of a Bank of England hike at 1200 GMT has been dampened by the introduction of measures announced on Wednesday to combat the Omicron variant.

At 1245 GMT the ECB is likely to diverge from the Fed’s tightening path and keep rates on hold, while Mexico will likely hike at 1900 GMT. nL1N2SU0FO

On Dec. 17 Japan’s central bank should stick with its easy policy and hold rates, while Russia is expected to lift rates substantially.

Widening divides will likely fuel volatility as liquidity wanes.

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(Jeremy Boulton is a Reuters market analyst. The views expressed are his own)


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