The eurozone's lack of organic growth and its reliance on
continued central bank stimulus likely increased market sensitivity to a report claiming the ECB might be considering tapering its $ 80 billion monthly purchases of bonds, though the claim was quickly dismissed by the ECB.
Growth in most of the eurozone has remained tepid and reliant on
continued central bank stimulus, though the European Central Bank's (ECB's) bond - purchasing program has been hampered by a scarcity of eligible bonds, as issuance from member governments is restricted by their austerity - driven policies.
Not exact matches
LONDON, May 3 - At a time when the impending withdrawal of European
Central Bank stimulus was expected to hurt southern European bond markets, so - called «peripheral» euro zone debt
continues to outperform its higher - rated peers.
European stocks closed litte changed on Friday as investors digested fresh economic data, eyed a G - 20 meeting in Hamburg and
continued to mull the possible end of monetary
stimulus from
central banks.
The
central bank says in its latest analysis that the economy
continues to depend on monetary
stimulus, so has decided to keep the trendsetting policy rate at one per cent.
The Fed's dovish stance, in conjunction with
continued stimulus from the European
Central Bank and the
Bank of Japan's adoption of negative interest rates in January, has helped drive equity markets higher since mid-February.
LONDON (Reuters)- At a time when the impending withdrawal of European
Central Bank stimulus was expected to hurt southern European bond markets, so - called «peripheral» euro zone debt
continues to outperform its higher - rated peers.
While economic data out of major EMs has certainly been disappointing lately, many EM
central banks continue to conduct monetary
stimulus policies geared at helping their economies grow.
TALKING THE TALK Aside from their discussion over the stance of monetary policy, officials likely
continued to debate fine - tuning their communications strategy by adopting numerical thresholds for economic variables that would guide the
central bank's unconventional
stimulus.
The US dollar had erased all its 2018 losses in the past two weeks on expectations the Fed will
continue to raise rates, even as other major
central banks around the world, including the European Central Bank, take longer to reduce st
central banks around the world, including the European
Central Bank, take longer to reduce st
Central Bank, take longer to reduce
stimulus.
Central banks are struggling to balance a desire to unwind unconventional policies and normalize interest rates with a
continued need for
stimulus measures in most economies.
The U.S. dollar had erased all its 2018 losses in the past two weeks on expectations the Fed will
continue to raise rates, even as other major
central banks around the world, including the European Central Bank, take longer to reduce st
central banks around the world, including the European
Central Bank, take longer to reduce st
Central Bank, take longer to reduce
stimulus.
Federal Reserve Chairman Ben Bernanke said that if the economy
continue to improve, the
central bank could start winding down its
stimulus program towards the end of the years
stimulus.
But we do not believe the ECB will contemplate a major change in direction, since in the
continued absence of a significant fiscal
stimulus, the region's economic performance remains too weak for the
central bank to risk measures that could create, however inadvertently, a degree of tightening in monetary policy.
Will
central bank policy makers
continue to cut back on
stimulus, especially with the recent turmoil in the markets.
3)
Central banks continue to withdraw
stimulus.
Senior deputy governor Carolyn Wilkins recently said that given
continued and broadening growth, the
central bank would assess whether the «considerable monetary policy
stimulus presently in place is still required.»
The figure is well below the Federal Reserve's annual target of 2 percent and could raise deflation fears as the
central bank continues to scale back a key
stimulus program.