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Kazakhstans oil and gas condensate production in April increased by 16% compared to March, reaching 2.17 million barrels per day.On May 4th, former New York Fed President Dudley stated that Jerome Powells decision to remain on the Fed Board after stepping down as chairman will help reassure Wall Street and the public amid pressure from President Trump to lower interest rates. "The Fed has been relentlessly attacked by the president, and its independence has been questioned," Dudley said. "Powell believes that his continued presence at the Fed actually strengthens the perception of the Feds independence. I think its a wise move for him to stay if he wants." Powells term on the Fed Board runs until 2028, and his decision to remain on the board after stepping down as chairman on May 15th is unusual in Fed history. Trumps nominee, Warsh, has offered reasons to support the presidents sought-after rate cuts. However, traders are no longer betting on any rate cuts this year, and Dudley also stated that the case for monetary easing is "weak."On May 4th, the Canadian government announced a C$1 billion (approximately US$734.65 million) loan program to provide assistance to industries affected by U.S. tariffs. In a statement, the government said, "This program will target industries that produce and export products containing steel, aluminum, or copper." The statement added that the loan will be disbursed through the Canadian Development Bank. In addition, the government announced C$500 million in funding for regional development agencies to support all industries affected by tariffs.European Central Bank Banking Supervision Committee Chairman Buch: Lowering capital requirements may only lead to increased distributions to shareholders, rather than more loans.Electronic Arts and Visa have launched a new partnership.

AUD/JPY Establishes over 90.00 as RBA Favors Gradual Balance Sheet Easing Program

Alina Haynes

May 23, 2022 10:06

The AUD/JPY pair has showed a sharper upward move after being underwhelming in the early Tokyo session. The risk barometer stayed in a modest range of 90.18-90.44 and now has surged significantly to around 90.60 after Reserve Bank of Australia (RBA)’s Christopher Kent said that the central bank is in no haste to kick-start its balance sheet reduction operation.

 

The current spike in the price pressure caused the RBA to boost its interest rate by 25 basis points (bps) for the very first time since the Covid-19 epidemic in May’s monetary policy statement. The action was absolutely unexpected since the RBA did emphasize in its comments that the central bank is not seeing rate rises sooner.

 

As RBA has pushed up its rate cycle, the market investors started expecting that the RBA will also commence its balance sheet reduction program to speed up the inflation-controlling procedure. Now, the RBA has indicated that the central bank is in no mood to bank upon quantitatively easing forcefully.

 

RBA Christopher Kent ordered that the Bank would continue to be able to maintain effective control over the cash rate as it withdraws monetary policy stimulus in the term ahead,' as per Reuters.

 

Meanwhile, higher-than-anticipated inflation data in Tokyo are expected to limit the sheer quantity of stimulus packages supplied by the Bank of Japan (BOJ) to accelerate the growth rate. Annual Japan’s National Consumer Price Index (CPI) number at 2.5 percent , much higher than the expectations of 1.5 percent and the earlier print of 1.2. 

AUD/JPY

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