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Benefits of Portfolio Diversification

RBA Interest Rate Decision | Will they stand firm?

It’s time to prepare for the upcoming RBA Interest Rate Decision. When the pandemic hit, Central Banks had to react quickly. Economies worldwide were being hit with restrictions, lockdowns, and torrid death tolls and infection rates.

Like many of the central banks, The RBA acted quickly, reducing rates. They decreased rates from 0.75% in February 2020 to 0.5% in March 2020. With two meetings in March 2020, the decision was further cuts were needed, so reduced again down to 0.25%.

After holding rates steady for the remainder of the year; The RBA Interest Rate Decision was to reduce rates to 0.1% (the same rate as The BoE).
The consensus has been correct in forecasting rates since May 2020.

Although world economies are starting to try to get back to a new ordinary, analysts still predict no change in Interest Rates yet. Will they continue their correct predictions?

Interest Rate Decisions always carry the potential for colossal volatility spikes and should be considered a hazardous time to trade.

Are you a news trader?

Or maybe a breakout trader?

If you plan to trade The RBA Interest Rate Decision, Tweet us how you plan to tackle the volatility storm should it surface!

Brought to you by Darwinex: UK FCA Regulated Broker, Asset Manager & Trader Exchange where Traders can legally attract Investor Capital and charge Performance Fees.

Risk disclosure:

https://www.darwinex.com/legal/risk-disclaimer

Content Disclaimer: The contents of this post (and all other posts’) are for educational purposes only, and are not to be construed as financial and/or investment advice.

Benefits of Portfolio Diversification

BoJ Interest Rate Decision | Will the Forecasts be accurate

It’s time to prepare for the upcoming BoJ Interest Rate Decision. The BoJ quite often proves analysts forecasts wrong. Be careful.

As with all Central Bank Interest Rate Decisions, there is always a risk of massive volatility spikes. 

On Dec 18th 2015 The consensus for The BoJ was they’d reduce rates from 0.1% to 0.0%. The consensus was wrong and The BoJ kept rates the same. Then on the following decision on Jan 29th 2016, the consensus was again that The BoJ would reduce rates to 0.0%.

What did The BoJ do? They reduced them to -0.1%. On that day the USDJPY rallied from 118.8 to 121.1, an increase of 1.95%. 

The BoJ Interest Rate has remained at -0.1% since then. Analysts have forecast changes to the rate but The BoJ has remained firm keeping rates the same.

Interest Rate Decisions always carry the potential for colossal volatility spikes and should be considered a hazardous time to trade.

Are you a news trader?

Or maybe a breakout trader?

If you plan to trade The BoJ Interest Rate Decision, Tweet us how you plan to tackle the volatility storm should it surface!

Brought to you by Darwinex: UK FCA Regulated Broker, Asset Manager & Trader Exchange where Traders can legally attract Investor Capital and charge Performance Fees.

Risk disclosure:

https://www.darwinex.com/legal/risk-disclaimer

Content Disclaimer: The contents of this video (and all other videos by the presenter) are for educational purposes only, and are not to be construed as financial and/or investment advice.