US Federal Reserve announced it would raise short-term interest rates for the first time since the financial crisis.
The major event of the week beginning 7 December 2015 was the European Central Bank (ECB) meeting on 10/12/15, which […]
The ECB proposed several measures to support the eurozone economy and bring inflation closer to its target at the 3 December meeting.
Weak global demand, low energy commodity prices and a strong US dollar have continued to put pressure on the US manufacturing and mining sectors in the US.
Despite Mario Draghi’s reserved statement, the Fed looks set to take the first step towards normalising US monetary policy, finally diverging from the ECB.
The October FOMC minutes seem to suggest a higher level of confidence to start policy normalisation in December, despite certain earlier data weaknesses.
The FOMC appear to be attempting to ‘stick the landing’ despite the predicted challenge of a two-tenths fall in the unemployment rate in the next 2 years.
The FOMC strengthened its language towards the possibility of a rate hike and gradual policy normalisation in the 16-17 October meeting statement.
Minutes of the 16-17 September FOMC meeting, published on 8 October, showed a Committee struggling to deal with the ambiguity of recent US economic data.
Recent surveys revealed that monthly jobs growth has averaged under 150 000 over the past 2 months, down from 200 000 in the first half of the year.
The Bank of England’s chief economist Andy Haldane thinks aloud about money and the future of monetary policy.
Following the 16-17 September FOMC meeting, the Fed has released its latest dot plot, showing members’ prediction for fed fund rates over the coming years.
The FOMC decided upon a hawkish hold at the September meeting, instead of beginning policy normalisation, releasing a subdued projection for policy rates.
Anxiously watched by markets, the decision was taken by the Fed not to hike rates at the September FOMC meeting, despite recent economic improvements.
With recent economic data being generally supportive of a tightening, all eyes are currently on the Fed over the possibility of a historic change in policy.
The low inflation environment looks set to stay as the ECB targets the ambitious goal of maintaining rates below but as close to 2% as possible.
Global central banks have reacted to the PBOC’s announcement to devalue the Chinese yuan, with several signs of discomfort towards the policy action.
The July Federal Open Market Committee minutes reflect doubt over Fed Chair Yellen’s approach to the inflation outlook and downside risks to growth.