ECB’s smaller actions wipe out billions of Dollars in bond market

Dec 04, 2015 07:54 am UTC| Commentary Central Banks

European Central Banks (ECB) smaller than expected monetary stimulus, wiped out billions of Dollars from bond market worldwide as investors rush for exits, from the most overcrowded trades of the year. After, last...

A glimpse on what extra Draghi’s monetary policy has delivered

Dec 04, 2015 07:00 am UTC| Commentary Central Banks

Draghi has delivered it finally to disappoint markets, contrary to past experience but as we feared given the high expectations. While the deposit rate was cut 10bp, asset purchases will not be accelerated.Although running...

Emerging Market Crisis Series

South Africa's SARB's vigilance on repo rate ensures inflation contained over long term

Dec 04, 2015 06:30 am UTC| Commentary Central Banks

SARB monetary policy indicates that consumer inflation is not expected to make any sustainable changes to the reserve boards 3-6% target band, real interest rates will likely climb up to 2.0%. The BER will publish its...

Currency War Series

ECB may hold current policy rates in near future

Dec 04, 2015 06:28 am UTC| Commentary Central Banks

The ECB declared a deposit rate cut of 10 base points to -0.3% and kept all other rates unchanged. The Bank extended its asset purchase program for further 6 month and decided to reinvest the principal payments on the...

ECB falls short of providing stronger forward guidance in terms of further rate cuts

Dec 04, 2015 06:06 am UTC| Commentary Central Banks

ECB President Draghi announced a 10bp depo rate cut, time extension of QE until at least March 2017, and inclusion of regional and local government debt in the PSPP in the meeting yesterday. It disappointed the market...

Currency War Series

ECB’s policy easing underwhelms

Dec 04, 2015 02:54 am UTC| Commentary Central Banks

Reaction in the overnight European markets would have you believe that the European Central Bank (ECB) did not act on policy. Equity markets ended in red, bond yields inched up and the euro was back above 1.08/dollar after...

Currency War Series

Draghi sure took some pressure off the Fed, didn’t he?

Dec 04, 2015 02:47 am UTC| Commentary Central Banks

Draghi sure took some pressure off the Fed, didnt he? No big change to QE after all and the euro surges to $1.094 from $1.055 - a 3.8% strengthening that makes the RMB move back in August look like kid stuff, even if it...