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.
The FOMC note that a policy rate rise would occur with an improvement in the labour market, likely to be in September, followed by a gradual normalisation.
China’s recent renminbi devaluation should not be seen as the latest policy tool in dealing with weak growth and deflation pressures, argues economist Chi Lo.
Despite headwinds from the crisis now fading, evidence shows a decline in the US growth rate as these issues prove to be more persistent than first thought.
This week’s chart of the week comes from the 85th annual report of the Bank for International Settlements (BIS), an […]
Since ECB president, Draghi’s ‘bumble bee’ speech, we have seen the return of volatility and can expect a tightening of ECB committment to the euro.
The statement published after the Federal Open Market Committee (FOMC) meeting on 17 June 2015 was largely in line with […]
What a difference a few weeks make. Since mid-May, much of the concern over the loss of momentum in the […]
In the first week of June, volatility in European and US sovereign debt markets picked up again after a two-week […]
The ECB’s bond purchases could lead to a scarity of government bonds. Sovereign issuance in the eurozone was strong early this year but it will shrink.
Recent events have seen a sharp reversal of market trends, with the PBOC cutting benchmark interest rates and the ECB’s tightening of financial conditions.
Portfolio rebalancing is occurring slowly. This shows that the effects of QE are happening gradually, and not that QE is having a less desired impact.
Assets managed by official institutions have risen significantly in recent years making them a powerful force in financial markets. A […]
Weaker-than-expected US data in Q1 and broadly lower sovereign yields has fixated fixed income investors on how the FOMC will react to the recent data.