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Global monetary policy

Global monetary policy
The latest news, analysis and opinion on Global monetary policy. In-depth analysis, industry insights and expert opinion.
last updated:
9 September, 2024
Passengers at Hong Kong International Airport on July 20, a day after a global IT service shortage affected air travel. Cybersecurity threats and extreme weather events are among the global risks that could become more severe in the coming years, contributing to financial woes across borders. Photo: Xiaomei Chen
Banking & finance

Opinion | In a world fraught with risk, Trump will add to the bumps

Amid increasing geopolitical uncertainty and trade tensions, investors are counting on the US central bank to keep printing money.

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Hong Kong

Editorial | Hong Kong interest rates volatility price to pay as spectre of Trump tariffs looms

Hong Kong Monetary Authority (HKMA)

Hong Kong banks cut lending rates, but HKMA warns of volatility ahead

Interest rates

US Federal Reserve set to cut rates as Trump prepares for second term

Analysts expect a slower path of rate cuts next year as they have concerns about some of Trump’s key policy initiatives.

The Fed is likely to signal a slower path of rate cuts next year amid uncertainty over Donald Trump’s economic proposals. Photo: AFP/Getty Images/TNS
Trade

Macroscope | Could Trump be a catalyst for the reforms China and Germany need?

As Beijing and Berlin face pressure to stimulate their economies, challenges posed by Trump’s approach could prompt much-needed policy changes.

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Banking & finance

Top bankers stress resilience and wisdom key to navigating uncertainty

Speakers at the Global Financial Leaders’ Investment Summit say collaboration and strategic thinking hold the key to tackling a divided world.

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Banking & finance

As China urges global financial reform, Global South ties more crucial: analysts

The world’s second-largest economy is looking to balance the scales of international financial governance under a system dominated by the World Bank and IMF.

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President Xi Jinping speaks at the Brics summit in Russia on Wednesday. Photo: Reuters
International Monetary Fund (IMF)

As global debt nears US$100 trillion, IMF urges action

International Monetary Fund economists warn that failure to address rising debt could lead to ‘significant spillovers’ for the world economy.

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China economy

Macroscope | Are markets misreading China’s economic priorities?

While Chinese policymakers need to bolster confidence in stimulus efforts, investors must come to terms with updated government priorities.

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Yuan

China’s yuan faces volatility amid US pressure and home-grown stimulus: analysts

A stronger yuan could drag down China’s export growth, and the central bank is expected to guard against excessive appreciation.

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Strong US jobs data released last week could affect the exchange rate between the US dollar and Chinese yuan, according to some analysts. Photo: Shutterstock
China economy

Opinion | China’s stimulus will fall short without private-sector confidence

While short-term stimulus will help, Beijing must directly address the fears of businesses and households to get them spending again.

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Illustration: Craig Stephens
China economy

Macroscope | Why ‘bazooka’ stimulus alone won’t fix what ails China’s economy

Markets aside, the economy faces structural challenges. Beijing favours an unbalanced growth mix that makes it harder to boost demand.

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Yuan

China’s yuan continues upward climb after Beijing’s stimulus roll-out

The yuan reached its highest level in over a year on Wednesday following interest rate cuts and new measures from China’s central bank.

Asia housing and property

The View | Why Fed’s rate cut won’t fix what ails Hong Kong or Singapore

Despite their many differences, Hong Kong and Singapore’s property markets both show that a monetary easing cycle is not a panacea.

Pedestrians pass commercial buildings in Singapore’s central business district on April 11. Photo: Bloomberg
China's economic recovery

Explainer | China’s 100-billion-yuan question: does government bond purchase shift policy?

Speculation is rife on what a US$14 billion treasury bond buy means for China’s money-supply mechanism, and whether the rare move equates to quantitative easing.

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The People’s Bank of China has made clear that Beijing’s treasury bond trade does not equate to quantitative easing. Photo: Reuters
US Federal Reserve

Editorial | US interest rate cut is welcome but many challenges remain for China

China – including Hong Kong – is not out of the woods yet, even with the 50 basis point reduction by America’s central bank.

Banking & finance

Dump or buy more? China’s holding of US debt in spotlight after Fed’s rate cut

Continued diversification of reserve portfolio may be in order, but into what, and at what speed, are pressing questions.

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Banking & finance

Macroscope | 4 reasons it’s too early to declare victory over inflation

Central banks might have kept interest rates too high for too long. Cutting them too quickly could prove even more costly.

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A construction worker climbs to the second story of a house under construction in a new development in Brambleton, Virginia, on August 14. US consumer inflation eased slightly in July, according to US Labour Department data, its smallest 12-month increase since March 2021 and a positive sign for the Federal Reserve as it weighs cutting interest rates. Photo: AFP
Yuan

China’s yuan to continue to gain, but outlook hinges on Fed rate cuts: analysts

China’s yuan gained 1.9 per cent against the US dollar in August, which represented the largest monthly change since November.

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Banking & finance

Open Questions | Economist Marc Uzan on how China can help reshape the global financial system

Marc Uzan, who has campaigned for changes to the global financial system for 30 years, says he remains optimistic about international cooperation despite the rise of unilateralism.

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Banking & finance

China’s central bank enters treasury bond market with 100-billion-yuan net buy

In a highly anticipated move, the People’s Bank of China has conducted its first open-market trade for treasury bonds in nearly two decades.

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The People’s Bank of China has made its first trade in the treasury bond market in nearly two decades. Photo: Bloomberg
United States

Macroscope | Why risk of US recession, not China downturn, is real cause for concern

The Federal Reserve’s priority must be to ensure fears of a deeper downturn do not become self-fulfilling, especially given what the US election could unleash.

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A cyclist rides past a “Now Hiring” sign posted on a business storefront in San Gabriel, California, on August 21. US figures for the 12 months ending in March showed there were 818,000 fewer jobs than previously reported in the largest downward revision since 2009. Photo: AFP
Asia housing and property

The View | South Korea, Australia show rate cuts are no cure-all for property markets

South Korea and Australia provide a cautionary tale of the limits of monetary policy when other factors also influence the outlook for residential property.

Singapore

Singapore’s currency scales new heights as traders bet on diverging policy paths

The Singapore dollar has surged to levels not seen since 2014 as traders wager on a hawkish policy stance from the city state’s central bank.

Banking & finance

Opinion | With US rate cuts on the horizon, the glass looks half full again

Lower US rates, helped by Japan’s normalising policy, would boost liquidity and ease dollar pressure, with better days ahead for emerging markets.

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US Federal Reserve Board chairman Jerome Powell kept interest rates unchanged in an announcement on July 31, but the move set up expectations of increases later this year. Photo: AP
Banking & finance

Gold soars to record high as central banks stockpile amid rate-cut bets

Citigroup says the metal could be headed for US$3,000 per ounce next year after hitting US$2,531.75 overnight.

Strong buying by gold exchange-traded funds in China and elsewhere is a factor in the rise. Photo: Dreamstime/TNS
Banking & finance

The View | Central banks need to communicate policy more effectively

The ability of central banks to pursue their main goals will depend increasingly on pursuing reforms in how they think and function.

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Japan

The View | Why messy end to negative interest rates won’t dent Japan’s appeal

Japan’s real estate industry is not immune to the fallout from ending ultra-loose policy, but its market’s appeal must not be underestimated.

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