Policy Normalization News Today : Breaking News, Live Updates & Top Stories | Vimarsana

BANGKOK, March 29 (Xinhua) -- Thailand central bank on Wednesday decided to raise its key policy rate for a fifth consecutive meeting, by another 0.25 percentag

The most fundamental of the Federal Reserve System’s many responsibilities is that of serving as the U.S. financial markets’ ultimate source of liquidity. Federal Reserve notes, along with account balances held by private depository institutions at the various Fed banks, are the U.S. economy’s final means of payment, and hence its most liquid assets, the scarcity of which is a crucial determinant of the scarcity of other liquid assets.

Some central banks in EM stayed on hold today. But make no mistake – the underlying policy currents are very different.

Policy normalization is set to commence in April with a stance change and reverse repo hike

With the recent surge in covid-19 cases and growing restrictions heightening uncertainty, it is increasingly unlikely that the MPC and RBI will embark on policy normalization next month unless inflation provides an acutely negative surprise, the likelihood of which is subdued, said Aditi Nayar, chief economist at ICRA