BOJ's Kuroda's policy guided by ‘Adaptive’ inflation expectations

Jul 22, 2015 01:51 am UTC| Commentary Central Banks

Kuroda subscribes to a hypothesis that inflation expectations are adaptive, rather than rational, meaning that people form future inflation expectations based on past or current actual inflation. From his speech on 19...

BoK discloses dip in GDP growth due to MERS outbreak

Jul 20, 2015 01:19 am UTC| Commentary Economy Central Banks

The release of advance GDP figures for Q2 2015 is basically set to be a non-event, as BoK Governor Lee Ju-yeol already disclosed a flash estimate of 0.4% qoq, at the press conference following the MPC meeting on 9 July. He...

ECB remains committed to fully implementing QE

Jul 19, 2015 22:14 pm UTC| Commentary Central Banks

As expected, the GC decided to leave its monetary policy unchanged and restated its commitment to continue its asset purchase programme at least until September 2016, until we see a sustained adjustment in inflation...

Global factors continue to dominate Japanese Yen: Barclays

Jul 19, 2015 20:48 pm UTC| Commentary Central Banks

Driver of the yen remains outside Japan as the BoJ remained sidelined at the last weeks meeting, whereas the improving risk sentiment and general USD strength brought USDJPY back to 124. Given eased concerns on Greece and...

ECB raises the Greece ELA, agrees on bridge-loan

Jul 17, 2015 07:21 am UTC| Commentary Central Banks

Bridge-loan for Greece agreed, ELA raised by 900m, banks will reportedly reopen on Monday, and the Bundestag will approve the austerity bill today. Something that can go wrong possibly is the Eurostoxx is up 10.7% since 7...

ECB ready to respond to unwarranted tightening of monetary policy

Jul 16, 2015 22:39 pm UTC| Commentary Central Banks

Given the many questions about Greece, statements about monetary policy took a back seat. The ECB President confirmed the need to maintain a steady monetary policy course and ensure full implementation of all monetary...

ECB lends Greece a hand

Jul 16, 2015 21:18 pm UTC| Commentary Central Banks

At todays press conference, there were many questions about Greece, but ECB President Draghi gave only provisional answers. The Council decided to raise the ELA ceiling, but only by 0.9bn over one week. The ECB has...