Some rate cuts and a big rate hike/Milei taking Argentina in the right direction/Other notable stuff

Ahead of the expected 25 bps cut from the ECB today at 8:15am est, a bunch of central bank actions have taken place and rather than wait until there is evidence that inflation will stay down on a sustainable basis, a few are trying to catch that falling inflation knife. But not all. I say 'not all' because the Brazilian central bank hiked rates by 100 bps last night and said expect another 200 bps to come.

From the Bank of Canada yesterday giving reason for their 50 bps rate cut to 3.25%, "With inflation around 2%, the economy is in excess supply, and recent indicators tilted towards softer growth than projected." Going forward its next move won't be as obvious as "we will be evaluating the need for further reductions in the policy rate one decision at a time. Our decisions will be guided by incoming information and our assessment of the implications for the inflation outlook." The BoC also laid out the big risk out there, tariffs. Risk of course if they happen but even risk if there are just threats of them. "No one knows how this will play out in the months ahead - whether tariffs will be imposed, whether exemptions get agreed, or whether retaliatory measures will be put in place. This is a major new uncertainty."

As the policy rate calibration from here is a bit cloudier than what's been seen in Canada, the Canadian$ is up for a 2^nd day, though very slightly. The 2 yr yield was up by 5 bps yesterday but still well off its levels of a few weeks ago.

The Swiss National Bank is giving themselves absolutely no room for maneuver if there are any economic surprises to the downside as they surprisingly cut its benchmark rate by 50 bps to .50%. As I hope I NEVER see negative interest rates again, it's bizarre to me that the SNB is playing this game again around zero rates. To the possibility of NIRP, Governor Schlegel said he doesn't like NIRP but would not exclude the possibility of them again. He said "With our easing of monetary policy today we are countering the lower inflationary pressure." He also threatened the use of FX intervention in order to stem further Swiss Franc gains of substance.