Brazil Holds Selic Rate at 15% as Inflation Expectations Stay Elevated 
BOJ Holds Interest Rates Steady, Upgrades Growth and Inflation Outlook for Japan 
Jefferies Sees Further Upside for Chinese AI Stocks as Valuation Gap Narrows 
Morgan Stanley Flags High Volatility Ahead for Tesla Stock on Robotaxi and AI Updates 
ECB Signals Steady Interest Rates as Fed Risks Loom Over Outlook 
Thailand Economy Faces Competitiveness Challenges as Strong Baht and U.S. Tariffs Pressure Exports 
China Holds Loan Prime Rates Steady in January as Market Expectations Align 
BOJ Rate Decision in Focus as Yen Weakness and Inflation Shape Market Outlook 
European Central Bank's (ECB) policymakers suggested previously that China poses significant risks to Europe due its prominence in global trade and two policymakers Mr. Constancio, Vice President of ECB and peter Paret, chief economist suggested that ECB stands ready to act if needed.
Currently inflation in Europe stands at 0.2%, well below central bank's target of close to but below 2%.
- Recent commodity rout including energy and slowdown in China has increased the possibility of further stimulus from ECB. As of now, ECB is purchasing bonds in tune of €60 billion per month. Current program is flexible enough to accommodate further stimulus. Banks can extend the maturity or the purchase size or even extend the program. Central bank might even choose to frontload the purchase in immediate term.
European central bank's 5 year-5 year forward inflation swap dropped to 1.4% over Monday's move and currently hovering at 1.6%. One year inflation swap has fallen below zero for the first time since February.
Next ECB monetary policy is scheduled on 3rd September, 2015.
Euro is currently trading at 1.142 against Dollar, down 1.1% for the day.
