Instead, the markets are simply
following central bank actions.
Not exact matches
The most important policy
action for mitigating the damage of a recession is for the
central bank to keep interest rates low, according to the respondents,
followed by increasing spending on transportation and other infrastructure projects.
The Fed should
follow rules when making policy to give the public a better understanding of the
central bank's
actions, Fed official Loretta Mester said.
Technically, the lines should not be connected, since they represent the gains
following distinct
actions of different
central banks, but connecting the points shows the trend toward less and less effective interventions.
«Therefore,
following the dramatic collapse in price, the now aggressive
central bank action and Russia's ability to pay, sovereign [debt] is very attractive in both the dollar and particularly in local currency terms.»
Actions last week seem to support Mr. Gross's view as the European
Central bank followed through with a much expected cut in rates moving the benchmark rate from 0.25 % to 0.15 % and the Deposit facility from 0 % to -0.10 %.