2018 Outlook: «A decade of extraordinary
central bank policy support will begin to end in 2018, but a favorable economic environment and improving corporate fundamentals could allow European stocks to play further catch - up with US equities.»
Central bank policy supported markets to boost wealth and consumption, through the so - called «wealth effect» transmission mechanism.
Not exact matches
Last week Abe also nominated academic Kikuo Iwata, who
supports unconventional monetary
policy, and BOJ official Hiroshi Nakaso, who has hands - on knowledge of the
central bank's inner workings, as the BOJ's next two deputy governors.
As a result, economists argue politicians should be doing everything possible to ensure the private sector in this country is strong enough to
support the economy when stimulus dollars disappear and
central banks tighten monetary
policy.
Several factors
support this rosier view, including a shift toward self - sustaining growth, improving private investment and steady
central bank policies — to name a few — but synchronous growth is chief among them.
Controlled inflationary pressures also
support our expectation of further
policy accommodation by Asian
central banks.
And that, in turn, could inhibit the
central bank from providing sufficient
policy easing to
support the economy.
At the same time, the
policy makers said the
central bank should continue to
support favorable financial conditions needed to sustain growth, according to the minutes.
Advanced and developing economies have done a good job managing the implications of unconventional monetary
policies, she said, using a phrase that often describes asset purchases by a
central bank to
support growth.
«Swap lines — along the lines provided by major
central banks early in the crisis — can help,» and the IMF stands «ready to provide
policy advice and financial
support,» she said.
In a statement after the end of the two - day
policy meeting, the
central bank said, «The stance of monetary
policy remains accommodative, thereby
supporting strong labour market conditions and a sustained return to 2 per cent inflation.»
The euro rose from its lowest in almost a year after Germany's finance minister said comments by European
Central Bank President Mario Draghi advocating
support for euro - zone fiscal
policy were «over-interpreted.»
«
Central bank securities purchases have provided meaningful
support to the economic recovery,» he said adding later that, «we should not rule out the further use of such
policies if economic conditions warrant.»
In a
policy statement after a two - day meeting, the
central bank acknowledged hints of strength in the U.S. housing market, but reiterated a pledge to continue
supporting growth even as the recovery picks up.
Thisconclusion was
supported by comments from European
Central Bank Executive Boardmember Juergen Stark who said an easy monetary
policy can have negativeeffects.
In February, Mexico's
central bank launched a US$ 20 billion currency hedging program — broadly similar to a
policy used in 2015 by Brazilian policymakers to stem a fall in the Brazilian real — which had the advantage of providing
support for the peso without draining the country's foreign - exchange reserves.
The US Federal Reserve and a number of other
central banks across the developed world maintained an ultra-loose monetary
policy to
support the economy following «The Great Recession».
Former
policy of
Central Bank was interventions on the currency exchanbge market to
support ruble while inflation was high.
While
central bank policy and financial engineering have
supported a nearly uninterrupted run - up in stock and bond markets over the last decade, it has also led to significant distortions in the valuation of stock and bond markets.
Controlled inflationary pressures also
support our expectation of further
policy accommodation by Asian
central banks.
A: Multiple years of unorthodox
central bank policy has anesthetized the global economy,
supporting only anemic growth and persistent deflationary concerns.
Uppermost in investors» minds are considerations like stretched stock valuations, weaning of monetary
policy support from
central banks and emerging market liquidity strains.
Central banks like the Federal Reserve can and do print more money to manage inflation and
support their countries» economic
policies.
In the recent January edition of «On the Markets,» from the Morgan Stanley Smith Barney Global Investment Committee, the accommodative fiscal
policy of both the U.S. Federal Reserve and the European
Central Bank will bolster financial markets and
support weak and slow - growing economies in Europe and the United States.