ECB did surprise market but market surprised more

Mar 11, 2016 07:59 am UTC| Commentary Central Banks

It would be fair to say that European Central Bank (ECB) succeeded in surprising the market, with big stimulus package it delivered, so the immediate effect was as intended. Bond yields were dropping, Euro was going down,...

ECB over-delivery fails to impress

Mar 11, 2016 01:55 am UTC| Commentary Central Banks

ECB fired a bazooka yesterday by more-than-expected across-the-board easing, though the markets were not impressed. Instead, the stock markets faltered and the EUR/USD ended higher than before the stimulus was announced....

Briferendum Series

Is the Bank of England independent when it comes to Brexit?

Mar 10, 2016 23:17 pm UTC| Insights & Views Central Banks

The Bank of England has been attacked by Leave campaigners for articulating what they deem to be pro-government, pro-Remain views about Brexit, when it should supposedly be independent. Governor Mark Carneys comment that...

CBR likely to leave key rate unchanged at March 18th meet

Mar 10, 2016 16:36 pm UTC| Commentary Central Banks

Elevated inflation risks and a vulnerable ruble could force the CBR to stay on the sidelines at March 18th meet. The ruble has gained quite a bit since weakening to a record low of USD/RUB 85.9675 on January 21, and is...

BoE FPC could likely decide on date for British banks' counter-cyclical buffer

Mar 10, 2016 16:03 pm UTC| Commentary Central Banks Economy

BoEs Financial Policy Committee in its Dec meeting agreed that the amount of extra capital British banks should set aside to protect them from future economic downturns should be 1 percent of their risk-weighted assets,...

China Crisis Series

Deflation in the industry sector and weak demand warrant an accommodative monetary policy from the PBoC

Mar 10, 2016 15:27 pm UTC| Commentary Central Banks Economy

Chinas Feb inflation accelerated to a six-month high in February as seasonal distortions caused food prices to spike. Data released on Wednesday showed that Chinas CPI inflation unexpectedly rose to 2.3% y/y in February,...

Czech Central Bank expects return of inflation to target to take longer than earlier imagined

Mar 10, 2016 15:03 pm UTC| Commentary Central Banks

Czech Statistical Office released inflation data on Wednesday which showed that February Czech inflation subsided, both at headline and core levels. Headline CPI was slightly higher at 0.1% m/m vs. 0.6% in January; the...