The trend has been
for more central banks to go negative, and for those already in negative rate territory to go deeper.
As of May of last year, nearly $ 10 trillion of bonds around the world were guaranteed to cost investors money, as more and
more central banks instituted negative interest rate policies (NIRPs) to spur consumer spending.
Risks to our baseline: banks do not
need more central bank liquidity at the moment and even if they did, the ECB's refinancing operations continue to be conducted through fixed rate, full allotment procedures until at least end - 2017.
This may
bias more central banks to begin considering headline numbers in their policy decisions like Japan and the ECB do already.»
And as additional countries pile into the loonie, it will only add incentive
for more central banks to increase their holdings.
More and
more central banks are commenting on the cryptocurrency phenomenon.
I contemplated going fixed rate but am predicting
no more central bank increases in Canada for a good while.
The news from Stateside came as a welcome tonic to traders, who had cause for concern earlier in the day when Agustin Carstens, general manager of the Basel - based Bank for International Settlements (BIS), called for
more central bank - led crypto regulations.