Fans of the film Toy Story will recognize Buzz Lightyear’s spunky catchphrase “To infinity and beyond!” Well, interest rates around the world are navigating their own journey, voyaging toward the abyss of the yield universe rather than its outer limits,
The ECB has been missing on its inflation target for 10 years The ECB never got to the “tightening window” In 2013, cash was yielding zero, now it is the EUR Aggregate market… …however, the EUR Aggregate market bears some
On September 12 the Governing Council of the ECB announced an extensive package of the monetary stimulus. It includes a deposit rate cut to -0.5%, the asset purchases program restarting November 1st, two-tier system for banks and easing of the
Our narrative on the US economy is relatively simple: for now, while the export-driven side of the economy is struggling, and investment in general is impaired by looming uncertainty with the “trade war” at the top rank of risks, the
After a difficult summer for risk assets, investors returned from their holidays in a bullish mood and drove equities higher in September, leaving global equities broadly flat for the quarter. The quarter was marked by a continued slowdown in the
Elga explains why we see a growth pickup looming on the horizon. Hint: Watch the transmission of financial conditions. An expected dovish pivot by central banks has materialized. Now what? Financial conditions in key developed economies have become more accommodative
Rick Rieder and Russ Brownback highlight their view that effective monetary and fiscal policy in the 21st Century needs to draw not only traditional economic theory, but also from the lessons of finance and other disciplines. We think the evidence
Philip R. Lane Member of the Executive Board Keynote speech at Bloomberg London 16 September 2019
ECB President Mario Draghi made it clear last week that governments need to step up fiscal stimulus. But what if they don’t? While “helicopter money” certainly has its drawbacks, the concept of becoming a "spender of last resort" may be
The European Central Bank (ECB) delivered a broad-based easing package in its policy meeting on Thursday. The package included a wide array of measures, most notably a cut in the key policy rate deeper into negative territory and a resumption
At its September policy meeting, the European Central Bank (ECB) delivered a substantial monetary policy easing package, including a renewed programme of asset purchases Policy easing came on the back of downgrades to the economic projections and persistent downside growth
Mario Draghi reacted to the increased economic risks to the economic outlook with a bold package of monetary easing measures. The extent to which this package in time supports the economy depends in large part on whether it encourages government
After he steps down as European Central Bank (ECB) president at the end of October, Mario Draghi may be best remembered for a crucial speech he gave in the depths of the sovereign debt crisis in 2012, when he promised
The European Central Bank (ECB) meeting on 12 September 2019 was highly eventful, with extremely volatile rate markets resulting from it. ECB president Mario Draghi delivered a monetary stimulus package that exceeded market expectations, despite not being at the higher
ECB View: Large-scale fiscal stimulus is unlikely to come through, while markets were not impressed with the package – In the months running up to last week’s Governing Council meeting, the ECB stressed its dissatisfaction with the inflation outlook and
Alle ogen waren afgelopen week gericht op de vergadering van de ECB. ECB-voorzitter Mario Draghi stelde niet teleur met de aankondiging van een hele reeks aan verruimende maatregelen. Conform verwachting werd de depositorente verder verlaagd. Ook werd het opnieuw opstarten
The Federal Open Market Committee (FOMC) meets next week, and it will be a highly anticipated gathering. Futures markets and Fed watchers are certain of a rate cut, but the path of the Fed Funds rate thereafter is a subject
Keynote speech at Bloomberg London 16 September 2019 Philip R. Lane Member of the Executive Board
Donderdag 12 september komt de ECB naar buiten met haar maandelijkse rentebesluit naar buiten. De verwachting is dat de rente zal worden verlaagd, maar zal dit de “markt” tevreden houden? Dit is op zich een vreemde vraag want het is
ECB View: A policy package excluding large-scale QE will not close the inflation gap – Market doubts about whether QE will be included in the ECB’s stimulus package in September have built over recent days and have helped to fuel
The ECB Governing Council's meeting on Thursday next week will receive even more attention than developments in the United Kingdom (see article below). The question is what measures will be taken to stimulate the economy. We are assuming a package.
Achmea Investment Management Een jaar geleden normaliseerden de Fed en ECB nog hun monetaire beleid. De Fed verhoogde geleidelijk aan de beleidsrente en de ECB stopte eind 2018 met het obligatie-opkoopprogramma. In de loop van 2019 draaiden beide centrale banken
Using a representative sample of businesses in the euro area, we show that Eurosystem purchases of corporate bonds under the Corporate Sector Purchase programme (CSPP) increased the net issuance of debt securities, triggering a shift in bank loan supply in
The structural Phillips Curve is a useful framework Slack in the economy, inflation expectations and markups are key determinants of inflation Using cross-country variation or external instruments are promising routes to identify the Phillips Curve slope Reduced-form empirical relation between
Rick Rieder highlights the economic policy state-of-play today, and where it may lead to should economic growth falter, productivity not materialize, and populism continue to thrive. The major global central banks continue to draw bigger guns in their battle against
The integration of #ESG criteria often has a greater impact for emerging countries. Find out why in an interview with our expert #Karine_Jesiolowski (via @allnews_ch).
Fresh #StarkieBlog! https://t.co/YZrzQpIlIQ
Low interest rates drive housing market -> https://t.co/XjhuRim2P7 #Interest #mortgages via @ABNAMROeconomen
