UBS: Fed's Powell May Refrain From Signaling QE Taper

The transcript discusses the unexpected reaction of the FX market to a rate hike, despite expectations. It explores the influence of the RBNZ's decision and COVID-19 on rate hikes, particularly in South Korea. The Bank of Korea's rate hike is analyzed, considering economic conditions and future expectations. The discussion extends to regional central banks' reactions and potential interest rate changes. Finally, the Jackson Hole Symposium is covered, with expectations for Jerome Powell's message and its impact on financial markets.

What was the market's expectation regarding the Bank of Korea's rate hike decision?

• The market was unsure about the decision.

• The market expected a rate cut.

• The market expected no change in rates.

• The market expected a rate hike.

What factor is likely to influence the pace of future rate hikes by the Bank of Korea?

• The political situation in Korea.

• The performance of the Korean stock market.

• The stabilization of the virus in Korea.

• The level of foreign investment in Korea.

Which regional central banks are expected to follow the Bank of Korea's lead in tightening policies?

• Central Bank of Japan and Bank of Thailand.

• Central Bank of Australia and Bank of Malaysia.

• Central Bank of Singapore and Reserve Bank of New Zealand.

• Central Bank of India and Bank of Indonesia.

What is the expected outcome of Jerome Powell's speech at the Jackson Hole symposium?

• No significant impact on the financial markets.

• A hawkish message indicating aggressive tapering.

• A dovish message with no immediate tapering signal.

• A surprise announcement of immediate rate hikes.

How has the euro-dollar exchange rate reacted in anticipation of the Jackson Hole symposium?

• It has fallen below 1.15.

• It has remained stable at 1.17.

• It has recovered from below 1.17 to above 1.18.

• It has dropped significantly to 1.10.