Aug 28, 2015 16:41 pm UTC| Commentary Central Banks
The Fed is not fond of being cast as the worlds central banker. After all, excessive focus on the global backdrop can make policy sub-optimal from a domestic perspective. However, the other extreme of policy isolationism...
ECB under pressure from falling inflation expectations
Aug 28, 2015 15:33 pm UTC| Commentary Central Banks
The 5Y 5Y forward swap rate of inflation (or 5Y 5Y inflation) has fallen significantly in recent weeks. The 5Y 5Y inflation rate is a financial measure often referred to by the ECB, as the central bank considers it...
ECB Preview: More easing before year-end
Aug 28, 2015 14:39 pm UTC| Commentary Central Banks
The ECB will hold its regular monetary policy meeting next week on Thursday, 3 September. Since the last policy meeting in July, there have been several macroeconomic and financial factors that have reduced the near- and...
Israel keeps its base rate unchanged
Aug 28, 2015 12:44 pm UTC| Commentary Central Banks
Israel kept its 0.10% base rate on hold this week, as expected. The central bank is under pressure to loosen monetary policy conditions with inflation low at -0.3% y/y and recent growth indictors very negative. The main...
Dovish ECB should lead to a reversal of the latest steepening move
Aug 28, 2015 07:45 am UTC| Commentary Central Banks
While the ECB will be likely to deliver a dovish message, it is unclear whether the Governing Council would consider recent developments big enough to tweak the QE programme in terms of size, extension of the eligible...
ECB likely to lower its inflation forecast next week
Aug 28, 2015 07:41 am UTC| Commentary Central Banks
More clarity on the ECBs view on inflation should come from its 3 September meeting. As for the latest forecasts published in June, the ECB sees inflation averaging 0.3% this year, 1.5% in 2016 and 1.8% in 2017."However,...
Intensified currency war implies stronger effective Euro
Aug 28, 2015 04:48 am UTC| Commentary Central Banks
The ECBs outlook for higher inflation is threatened by a renewed trend higher in the effective EUR, which, when considering the 3M change, is at the highest rate in more than two years. The upward pressure on the EUR...
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