Tag Archives: monetary policy

Policymakers could have lifted inflation, if they wanted

Central banks are still worried about the danger of deflation, even though they have timidly started to lift interest rates. How else would they explain real negative rates almost everywhere in the developed economies?

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The first half of the year was full of humbling lessons

What a spectacular lesson the first half of the year delivered for investors. At the beginning of the year, it looked like the UK’s vote to leave the European Union was a great idea: the eurozone seemed on the brink of disintegration.

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‘Brexit’ referendum is bad for the UK no matter the result

The “Brexit” referendum is already turning out to be more toxic than many people would have thought, and that’s before we even know the result.

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Central bankers must walk the talk, or walk into the trap

By Mirela Roman

While central bankers are stepping deeper into territory they have never tried before (negative IR, QE), markets and also the public want solid proof that they Walk the Talk.

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Bank of England loses inflation target

Well, it was only a matter of time, really.

Central banks’ credibility has been eroding bit by bit for a while now, but the first evidence that the public’s expectations about inflation are disconnecting from those of the policymakers emerged on Thursday.

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Fed to raise interest rates more than anticipated: analyst

Many in the markets are looking with apprehension at this coming Wednesday’s decision by the Federal Open Market Committee (FOMC), wondering when will the Fed finally pull the trigger on raising the interest rates – or rather, “normalising” an abnormal situation that has lasted since the financial crisis hit in 2007.

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What stocks to buy as the Fed raises interest rates

The markets are trying to price in the first interest rate rise by the Federal Reserve in nine years, and as shown by recent volatility, it is not an easy task.

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Five reasons why US stocks won’t crash after Fed rate hike

As the Federal Reserve’s Federal Open Market Committee (FOMC) starts talks on what is probably the most watched interest rate hike in history, the importance of getting it right cannot be over-emphasized.

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UK budget: don’t mistake luck for skill

Ever since the Conservatives came to power in 2010, austerity has dominated the UK budget. It was a policy introduced to reduce the yawning budget deficit, which made the country vulnerable to attacks from the bond vigilantes.

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Eurozone earnings revisions bring glad tidings

Hardly a day goes by without a piece of good news and/or upbeat forecasts about the eurozone. Two of the most recent ones deal with positive eurozone earnings revisions and the improved macroeconomic picture.

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