Sentences with phrase «of central bank tightening»

Overall, we think global growth, fiscal policy and organically derived forms of liquidity will likely more than offset the slow pace of central bank tightening this year.

One is inflows from retail investors who, spooked by the prospect of central bank tightening, have shifted into an asset class where they traditionally represent just 10 % or so of available capital.

Not exact matches

Seen as one of the most important members of the Fed's rate - setting committee, Dudley said the central bank was in no rush to tighten monetary policy.

Yellen turned the question around: «When you say that central banks kill them, the usual reason that that has been true, when that has been true, is that central banks have been too late to tighten policy and they have allowed inflation to get out of control and at that point they have had to tighten policy very abruptly and very substantially and it's caused a downturn.»

«In light of the central bank depending on the exchange rate to tighten monetary conditions, which is not happening, it will be interesting the position on the crown the bank will take now,» Czech bank CSOB analysts said in a note.

After weakening at the start of 2018, a rise in U.S. Treasury yields have helped the dollar stage a recovery in the past fortnight at the same time as doubts grow about when the European Central Bank (ECB) will tighten monetary policy.

Over the past several months, debt traders have been growing increasingly wary of this type of monetary tightening by global central banks, which have been the biggest buyers of bonds for years.

Analysts said the use of the word «symmetric» suggests that the Fed may allow inflation to run above its 2 percent target, a stance that would limit the need for the central bank to embark on a more aggressive path of monetary tightening in response to recent rises in inflation.

The question lingering on investors» minds is how many rate increases the central bank intends to implement until the end of the tightening cycle, and if it was willing to raise rates above it its so - called neutral rate.

«Unless quite substantial tightening of monetary policy is delivered, the lira will remain volatile,» Rabobank's Matys said, adding the central bank may have to consider an emergency policy meeting beforehand, as was the case in January 2014.

On the other side, there were enough positive indicators to keep a September tightening in play, even as Wall Street looks more seriously at the possibility of a Fed move in October or at the central bank's last meeting of the year, in December.

The members of the central bank apparently think the recent slowdown in price growth is transitory, and that at some point, price pressures will reflect the tightening of the job market.

European Central Bank plans to tighten up non-performing loan rules could be rolled back due to fears of a fire sale.

There could be several factors that had investors on edge — including news that North Korea had completed a fifth nuclear missile test and the European Central Bank had declined to announce additional measures to help stimulate Europe's sluggish economy — but many strategists pointed to a speech Friday morning by Federal Reserve Bank of Boston President Eric Rosengren, in which he said that «a reasonable case can be made» for tightening interest rates in the U.S..

The risk of volatility spikes and liquidity shortages is rising, and it could get worse with new «quantitative tightening» policies from central banks.

So it should worry more than Wall Street traders trying to guess the exact date of the central bank's first tightening move.

But the danger of a central bank willing to tighten economic conditions as the boost from fiscal stimulus fades has helped push down long - dated yields, while lifting short - dated yields.

The timing of Bernanke's easing raises the stakes for the Fed's four remaining policy meetings this year as investors focus on whether the central bank will provide stimulus for 2013 to help the economy overcome the impact of the fiscal tightening due to take hold in January, said Vincent Reinhart, chief U.S. economist at Morgan Stanley.

The pace of rate increases has picked up since the central bank began its tightening cycle in December 2015.

Rising U.S. debt supply and the pace of the U.S. Federal Reserve's tightening, the possibility the European Central Bank's quantitative easing program is heading towards the finish line, and concerns about the credit quality of riskier asset classes restrained investors.

Twelve of the 19 analysts polled by Reuters predicted the central bank would tighten its exchange - rate based policy.

Unlike the Federal Reserve, most of the major central banks in the world will be easing rather than tightening monetary conditions in 2015.

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 U.S. Office of the Comptroller of the Currency said banks relaxed the criteria for businesses and consumers to obtain credit during the 18 months leading up to June 30, 2013, while the European Central Bank said fewer banks in the euro zone were reporting tightened lending standards to nonfinancial businesses in the fourth quarter of 2013.

While mortgage lenders have tightened their wallets since 2008, corporations have been borrowing with abandon, abetted by trillions of dollars in central bank liquidity and investors searching for yield they can no longer find in government bonds or money markets.

Implied volatilities gradually declined around the world in the second half of 2003, as it became clearer that the easing cycle was drawing to a close, with some central banks beginning to tighten monetary policy after a prolonged period of relatively low and stable interest rates.

«The markets have, for a while, suspected the BoE might be the first of these central banks to tighten,» Lewis said.

We see central banks nearing the limits of extraordinary monetary easing, low returns across most asset classes as well as higher equity and bond volatility amid looming political risks and Federal Reserve (Fed) tightening.

Without policy accommodation (and the Federal Reserve, People's Bank of China, the European Central Bank are steadily tightening policy), a bifurcated economy has a fraction of «old normal» risk tolerance and asset price resiliency.

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.

Nevertheless, the apparent success of the ECB's policy in overcoming the threat of deflation increased speculation about a potential tightening of monetary policy, possibly even before the cessation of the central bank's bond purchases — scheduled to continue for at least the rest of the year — and in the wake of the ECB meeting pushed market estimates of the odds of a rise in official interest rates before the end of 2017 to more than 50 %.

In terms, I think of inflation and bond markets, it took six, seven, eight, maybe 10 years of high inflation in the 1970s before you had Paul Volcker brought in to say «enough is enough,» and then again whether it's led by American monetary policy but similar moves in Europe, obviously in the UK, a significant tightening of monetary policy because people got fed up with inflation and I don't think that we are kind of yet at the point where real wages have been suppressed so much by that irritation that inflation is always running ahead, life is becoming more expensive, so we need the central bank radically to change their policy.

If this would've happened if they were a significant and fast fall in asset values of asset pricing, could there be a reverse in course by central banks from tightening back to quantitative easing?

A tightening labor market has often been cited by the central bank as an important source of inflationary pressure.

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.

For example, while the United States is tightening its monetary policy, the central banks of Europe and Japan both have launched aggressive stimulus measures since 2014 to jumpstart economic growth.

In response to the threat from inflation, which in August of this year reached a 16 - year high, Mexico's central bank sharply tightened monetary policy, increasing interest rates at seven consecutive meetings up to June.

With the Fed tightening monetary policy and our economy improving — and with the economies of European and other developed nations still struggling to generate growth, and with their central banks still pursuing very easy monetary policies — the dollar would strengthen.

But this year a combination of an IMF bailout programme, a US$ 1.8 billion cocoa syndicated loan, a US$ 750 million Eurobond and the central bank's tightening of the monetary policy has led to the cedi recording one of its best performances in recent years.

Phase 4: Stagflation phase: GDP growth slows but inflation remains high (side note: most bear markets are preceded by a 100 % + increase in the price of oil which drives inflation up and causes central banks to tighten).

Until recently, all of the major central banks of the world were tightening, all at once.

The Swiss Central Bank continues to tighten, while the Bank of England effectively loosens, because of the recent panic there, involving Northern Rock.

Europe is just starting to stabilize and Mario Draghi will certainly continue to support the banking system throughout Europe and is clearly aware of the continental unemployment problem, the European Central Bank is nowhere near tightening and the Bank of Japan is still easing.

On average, investors have experienced negative returns during periods when a growing number of central banks are tightening policy.

The Dow Jones Industrial Average has slid about 3.5 per cent this week as President Donald Trump invited a trade war and Federal Reserve Chairman Jerome Powell fuelled speculation the central bank plans to quicken the pace of monetary tightening.

Although bond yields have already started to rise in recent months in anticipation of a reduction of monetary stimulus in the US, we expect future increases to be moderate in the face of what is likely to be a gradual pace of policy tightening by both the US and Canadian central banks.

But the recent rise in mortgage defaults and the tightening of credit have raised expectations on Wall Street that the central bank had to cut interest rates to help protect the economy and to keep financial markets stable.

While the central bank insists that private domestic demand will account for most, if not all of Canada's growth over the next couple of years, experts remain confident that any tightening here at home will be gradual and cautious.

My view is that the next major blow - up will happen as a result of a neophyte developing large country central bank overshooting on their tightening of monetary policy.

This means that as the central bank undergoes a tightening cycle, it could be beneficial to trade interest rate risk for credit risk, if one believes in the continuing strength of an economy.