Still mum on when to cut

While the BoJ kept its ultra-easy policy and the People’s Bank of China cut bank reserve requirements to inject liquidity to the economy, it is still premature for the Western central banks to talk about rate cuts… The ECB provided no clear hints on the timing of future policy shifts. Neither did the BoC. The BoC hinted only that its tightening cycle might have picked, shifting its focus to when to cut rather than whether to hike. Next week, the Fed’s and BoE’s policy meetings will be closely watched in search for any clues on the timing and the magnitude of rate cuts. The Fed may still need to see more data, whereas in England all MPC members will possibly refrain from voting for a rate hike and one member could back a cut.