BoJ likely to add further stimulus

Oct 21, 2015 06:01 am UTC| Commentary Central Banks

Japanese trade data disappointed and fuel concerns about weakness in the global manufacturing sector. Export growth was the weakest in more than a year increasing 0.6% y/y in September down from 3.1% in August and...

What is the Fed waiting for?

Oct 21, 2015 05:42 am UTC| Commentary Central Banks

Overall, the Fed will conclude that the US economy remains over track once it is confirmed that the recent growth slowdown was largely due to an inventory correction and that the labour market continues to...

ECB's QE2 announcement more likely in December

Oct 21, 2015 05:41 am UTC| Commentary Central Banks

ECB President Mario Draghi manages to force a decision next week, but the bar on an immediate response seems to be high. An expectation of announcement of QE2 is extended from October to December. It is believed that...

Fed tightening may mount pressure on BRL

Oct 21, 2015 05:08 am UTC| Commentary Central Banks

The sharp deterioration in financial conditions in Brazil - given domestic and external sector developments - forced the BCB to come out in support of the BRL with some direct actions and indirect assurances (including the...

ECB's next step may be expansion of asset purchase program

Oct 21, 2015 04:27 am UTC| Commentary Central Banks

There has been a consistent tone in most recent comments by ECB Governing Council members. These comments have not strayed far from the stance communicated in the September press conference, the ensuing Monetary Policy...

Tighter conditions until December could harm Euro area growth

Oct 21, 2015 03:32 am UTC| Commentary Central Banks

While Draghi usually displays an impressive mastery of the press conference, he has had communication mishaps in the past. If he comes out too hawkish next week, ie, too dismissive of the risks, the euro exchange rate...

The more the ECB waits, the more it will need to give

Oct 21, 2015 03:19 am UTC| Commentary Central Banks

The more the ECB waits, the more it will have to do to convince the market it can deliver on its price stability objective. QE2 is increasingly consensual among commentators, and market expectations for a decisive further...