Liquidity Insights Overview

Liquidity Insights

Discover our vast array of liquidity insights covering global investment news and trends that may impact your cash portfolios

LATEST LIQUIDITY COMMENTARY

Hiking forcefully into a recession

In a near-consensus 8-1 vote, the Bank of England (BoE) Monetary Policy Committee (MPC) raised the Bank Rate by 50 basis points (bps) to 1.75%, the highest level in over 13 years as domestic cost and price pressures intensify.

RBA hikes rates, but pivots from a “pre-set path”

At its monetary policy meeting on August 2, the Reserve Bank of Australia (RBA), in-line with expectations, hiked the base rate by 50bps to 1.85%, taking total rate hikes to 175bps over the past 4-months.

When does unusually large become usual?

On July 27, the Federal Open Market Committee (FOMC) raised its Federal Funds Rate target range by 75 basis points (bps) to 2.25% - 2.50%. There were no dissenters.

ECB bids farewell to negative rates

At its 21 July board meeting, the European Central bank (ECB) raised all its key interest rates by 50 basis points (bps), considerably larger than the 25bps guidance it gave in June. This moves the deposit rate out negative territory for the first time since 2014.

The Monetary Authority of Singapore – an expected surprise of S$NEER hike

On July 14, the MAS announced it would tighten monetary policy by re-centering the S$NEER policy band upwards. While the timing of the MAS statement was a surprise, the market was expecting further policy actions.

Bank of England plays safe with 25bps rise to 1.25%

Markets were expecting a 25bp rate increase from the BoE at its June meeting and that’s what was delivered, as the Monetary Policy Committee voted to raise the Bank Rate to 1.25%. The BoE was the first major developed central bank to start hiking rates in late 2021, and the latest move affirms its commitment to a slow and steady progression towards normalised interest rates, even as an increasing number of central banks pivot to larger rate increases.

Fed gets aggressive on inflation

The Federal Open Market Committee matched market expectations for a 75bp increase to its target range, which now sits at 1.50%-1.75%. It also raised the Interest on Reserve Balances and the overnight Reverse Repo Rate by an equivalent amount to 1.65% and 1.55%, respectively.

The Reserve Bank of Australia: moving ahead of the curve?

On June 7, the RBA surprised the market by raising the Overnight Cash Rate by 50bps to 0.85%. This is the second rate hike in the current cycle, following a 25bps move in early May. The size of the rate hike also affirms the RBA’s desire to get ahead of the inflation fighting curve.

Tempered Expectations

The FOMC met market expectations for a 50bps increase to its target range, which now stands between 0.75% and 1.00%, and raised the Interest on Reserve Balances (IORB) and the overnight Reverse Repo Rate (RRP) by the same amount to 0.90% and 0.80% respectively.

Carefully calibrated four in a row as rates top 1%

The BoE delivered on market expectations, increasing the Bank Rate by 25 bps at its May MPC meeting and bringing rates to 1% for the first time since the Global Financial Crisis, in what Governor Andrew Bailey described as a ‘carefully calibrated decision’.

The Reserve Bank of Australia’s hawkish turn

The RBA hiked its Overnight Cash Rate for the first time in over a decade at its 3rd May monetary policy meeting. The hike was more hawkish than expected.

PBOC’s muted monetary policy and its implications for CNY interest rates

The latest muted actions by the PBoC suggest the central bank is reaching the limits of monetary policy, which are expected to have direct implications for onshore interest rates.

Reserve Bank of Australia: From patience to pragmatism

At its monetary policy meeting on Tuesday 5th of April, the RBA left base rates unchanged at a record low of 0.1% whilst acknowledged that “inflation has picked up and a further increase is expected” in the accompanying comments. Its hawkish tilt and giving a clear hint to potential rate rises in the coming months.

Fed lift-off

On 15-16 March, the Federal Open Market Committee (FOMC) held its two-day meeting and raised its federal funds rate target range by 25 basis points (bps) to 0.25%-0.5%, with one dissenting member calling for a 50bps increase.

Bank of England see-saw back to a dovish stance

The Bank of England (BoE) raised the Bank Rate by 25 basis points (bps) to 0.75% in a split 8-1 vote with the dissenting Monetary Policy Committee (MPC) member calling for no change on 17 March 2022.

The Reserve Bank of Australia: Stressing patience, confirming plausibility

At their first monetary policy meeting of 2022, the RBA acknowledged that the economy “remains resilient” despite the recent Omicron outbreak which has not derailed the recovery.

En Garde! Lagarde

The European Central Bank (ECB) took a hawkish turn at the February meeting, putting the market on alert for potential rates hikes later this year. While this was not a meeting where the ECB unveiled a new set of forecasts, it nonetheless provided a number of talking points.

UK rates march upwards – for now!

The Bank of England (BoE) raised the Bank Rate by 25 basis points (bps) to 0.50% in a split 5-4 vote with dissenting Monetary Policy Committee (MPC) members calling for an immediate jump to 0.75%.

A surprise, pre-emptive policy hike by the Monetary Authority of Singapore

Singapore’s de-facto central bank hiked the slope of the S$NEER policy band, increasing the pace of appreciation. The unexpected hike was triggered by the strong inflation uptrend in recent days as well as a reassessment of Singapore’s growth and inflation expectations in 2022 by the MAS.

Bank of England lift off with 15bps hike despite Omicron threat

The Bank of England (BoE) delivered an early festive surprise for sterling markets as they increased the Bank Rate by 15 basis points (bps) to 0.25% at its December Monetary Policy Committee (MPC) meeting.

A “close call” on the BOE’s laboured path to higher rates

The Bank of England (BoE) defied market expectations for a rate hike as they left the Bank Rate unchanged at 0.1% and maintained total target of asset purchases at GBP 895 billion. The deferred hike means no immediate respite to ultra-low sterling yields, although further interest rate volatility is likely; investors should consider maintaining a disciplined approach to cash investment and segmentation.

RBA Tentative Tapering

The RBA announced its first tentative step towards tapering and eventual policy normalization.

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John T. Donohue

CEO Asset Management Americas, Head of Global Liquidity

25 years with J.P. Morgan

34 years in the Industry

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Jim Fuell

Head of Global Liquidity Sales, International

16 years with J.P. Morgan

32 years in the Industry

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Paula Stibbe

Global Head of Liquidity Clients

11 years with J.P. Morgan

30 years in the Industry

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Paul Przybylski

Global Head of Product Strategy and Client Service

14 years with J.P. Morgan

21 years in the Industry

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Ted Ufferfilge

Global Head of Investment Specialists

21 years with J.P. Morgan

30 years in the Industry

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Dave Martucci

Portfolio Manager, Global Head of Managed Reserves

22 years with J.P. Morgan

22 years in the Industry

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Jemma Clee

Head of Investment Specialists, International

3 years with J.P. Morgan

18 years in the Industry

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Neil Hutchison

Portfolio Manager, Managed Reserves Europe

11 years with J.P. Morgan

24 years in the Industry

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Olivia Maguire

Portfolio Manager, GBP Liquidity Strategies

24 years with J.P. Morgan

24 years in the Industry

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Joseph McConnell

Portfolio Manager, EUR Liquidity Strategies

27 years with J.P. Morgan

27 years in the Industry

View Full Profile

John T. Donohue

CEO Asset Management Americas, Head of Global Liquidity

Jim Fuell

Head of Global Liquidity Sales, International

Paula Stibbe

Global Head of Liquidity Clients

Paul Przybylski

Global Head of Product Strategy and Client Service

Ted Ufferfilge

Global Head of Investment Specialists

Dave Martucci

Portfolio Manager, Global Head of Managed Reserves

Jemma Clee

Head of Investment Specialists, International

Neil Hutchison

Portfolio Manager, Managed Reserves Europe

Olivia Maguire

Portfolio Manager, GBP Liquidity Strategies

Joseph McConnell

Portfolio Manager, EUR Liquidity Strategies

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