«Markets are pricing in an 80 - 85 percent chance... I think that's a done deal,» Gorman said, referring to
expectations for the central bank's upcoming December meeting.
Only after a new governor and deputy governors are in place in coming weeks will the nine - member board decide how to meet widespread
expectations for the central bank to take more aggressive action to revive the long - moribund economy.
Not exact matches
As far back as 2002, while vice minister, Kuroda used an opinion column in the Financial Times, co-written with his deputy at the finance ministry, to call
for «aggressive monetary policy» from the
central bank, including an inflation target, aimed at «drastically changing price
expectations.»
The selection of the new BOJ leadership comes at a crucial time
for Japanese and global markets, which have been rattled in recent weeks on
expectations major
central banks will whittle down their crisis - mode stimulus.
Similarly, the euro, which briefly hit its lowest since March 15, was on track
for its worst week in seven as investors this week have revised their
expectations for when the European
Central Bank will begin to tighten monetary policy.
BUDAPEST, May 3 - The crown eased versus the euro on Thursday as
expectations for hawkish comments from the Czech
central bank were outweighed by indications from the U.S. Investors in Central Europe have been closely watching the euro / dollar cross in the past weeks, which hovered around the 1.2 line on Th
central bank were outweighed by indications from the U.S. Investors in
Central Europe have been closely watching the euro / dollar cross in the past weeks, which hovered around the 1.2 line on Th
Central Europe have been closely watching the euro / dollar cross in the past weeks, which hovered around the 1.2 line on Thursday.
But a change atop the U.S.
central bank still adds to the uncertainty in the market, and the pullback could test whether Powell's leadership will provide a «put» that supports stock prices as had been the
expectation for investors under past Fed chairs.
Bullard, who has criticized the Fed's communications strategy as being too confusing
for the public, said he was surprised the gap in
expectations between the
central bank and markets remained so wide.
The
central bank's latest monetary policy report, which lowered growth
expectations for 2016 and 2017, could force Trudeau to rein in his spending plans upon returning to the House of Commons.
Even as rates rise in general, the influence of
central banks and
expectations for inflation can create short term movements in the yield curve that can be exploited using systematic style premia.
Here it is important, in my view,
for policy - makers to encourage markets to form their
expectations on the basis of the
central bank behaving consistently with its announced inflation objective.
Expectations for strong U.S. jobs data on Friday have been maintaining a bid
for dollars, while timely survey data show that a cooling in economic growth is afoot, and ECB President Draghi gave dovish - tilting remarks following the
central bank's April policy review last week.
Bottom line: We believe non-U.S. stocks, particularly cyclicals, offer rewards given our
expectations for sustained, above - trend global growth, relatively attractive valuations and accommodative
central banks.
With growth prospects
for the world economy being revised up and inflation no longer falling, short - term market interest rates have risen on the
expectation that
central banks will unwind the accommodative monetary policy they had put in place over the previous year or two (Graph 4).
The
central bank didn't do anything to dispel market
expectations that it will lift interest rates in June, the seventh time
for such a move since the end of 2015, as it aims to normalize monetary policy.
The Fed began raising rates in December 2016 amid
expectations for inflation to reach its target — and the
central bank expects more rate hikes to come.
Indeed, as
expectations for economic growth have been scaled back somewhat in both regions over the past three months, markets have pushed back their
expectation of the timing of the first tightening by both
central banks.
The
expectation is that the
central bank will hold rates steady this month, but investors may be most interested in hearing the lead
bank's outlook
for the rest of this year.
While some of the yuan's weakness can be attributed to investors» concerns about China's slowing economy and latent risks in its financial system, there is also a growing perception that the Chinese
central bank has been proactively undermining
expectations for the yuan to relentlessly appreciate.
Conversely, an unanticipated overshoot on inflation in Europe and Japan, where
expectations are still very low relative to
central bank targets and deflation, could turn out to be a positive
for stock markets.
Nevertheless, we share the widespread
expectation the volatility that we've seen in recent months will continue
for some time to come and that is why we expect the European
Central Bank (ECB) to provide more easing, probably by extending its quantitative easing (QE) program yet further.
The longer it takes
for expansionary fiscal policies to emerge, the more likely
for financial conditions to ease as investors pare
expectations of near - term policy tightening due to limited risk tolerance amid
central bank inaction.
«Japan's experience refutes the premise
for monetary policy that long - term inflation
expectations are determined by a
central bank.»
The difficulty
for the ECB in managing market
expectations on monetary policy in the face of stronger economic growth was evident elsewhere in President Draghi's remarks, as he repeatedly stressed the need to keep the region's interest rates at current levels while the
central bank winds down its QE program.
Conversely, an unanticipated overshoot on inflation in Europe and Japan, where
expectations are still very low relative to
central bank targets and deflation, could turn out to be a positive
for stock markets.
In particular, the demand
for money rises when: consumer spending rises, uncertainty rises, there are higher costs in buying and selling other assets,
expectation of a future stronger dollar, increased demand
for reserves from
central banks (both foreign and domestic), and a rise in foreign demand
for US goods and investments.
This has generally occurred when
expectations of increased
central bank support
for financial markets lift both assets.
With US Federal Chair Janet Yellen and Mario Draghi — The European
Central Bank President taking keynote turns
for their speech in the meeting — the Jackson Hole Symposium that is starting today, analysts will take great notice if the Digital currencies will be replying their
expectations.