PA ANALYSIS: Is the golden age of central bank support ending?
The old adage ‘don’t fight the Fed’ exists for a reason.
Interest Rates
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BoE positivity ‘undermined’ by Brexit uncertainty
Uncertainty over the future of the UK’s Brexit negotiations tempered Bank of England forecasts published on Thursday (11 May).
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PA ANALYSIS: “Irrational” Bank of England must raise rates
For MPC member Gertjan Vlieghe to admit that the Bank of England is in no position to predict the next recession was a brave call, but do policy makers have the courage to hike rates?
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Further BoE rate cuts in 2017, economists warn
The stage is set for a further rate cut by the Bank of England next year as growth slows, economists have said in the aftermath of Wednesday’s decision to hold the rates at 0.25%.
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Strong jobs report cranks up pressure on Fed
A relatively healthy 178,000 new jobs were added in the United States during November, further pushing the Federal Reserve towards acting to prevent the economy overheating.
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PA ANALYSIS: Will the Fed turn its back on the world next year?
With a December interest rate rise now close to certain, investors will no longer be trying to assess when the Federal Reserve will raise rates next, but what the path will be after this.
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PA ANALYSIS: Is the bond sell-off a blip or just the beginning?
Yields rose notably this week and investors will be considering whether to stick to their guns to avoid making a paper loss a real one, or get out before things slide further.
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Allianz chief warns diversification strategies may face threat
The once “unthinkable” prolonged period of low and negative interest rates may have even further to travel, according to the chief economic adviser to insurance giant Allianz.
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Fed leaves investors waiting for Trump and Clinton
The Federal Reserve’s decision announced last night to keep rates on hold has left investors waiting to see the outcome and market impact of the Presidential election before a rate rise is put back on the agenda.
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ECB goes into holding pattern
The European Central Bank decided to stick rather than twist today as it announced the deposit rate has been held at -0.4%, the refinancing rate held at zero, and the details of its €80bn per month quantitative easing programme are unchanged.
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PA ANALYSIS: Falling discount rates – gain before the pain
The ultra-loose monetary policy pursued by central banks since the financial crisis has implied an unprecedented fall in discount rates, which has led to a massive front-loading of returns: not only for bonds, but also for equities. Does this mean you should take your profit now and sell?
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BoE cuts rates to 0.25%, turns on QE tap
The Bank of England’s Monetary Policy Committee has cut interest rates to 0.25%, and committed to a new term funding scheme to “reinforce the pass-through” of the decision into the broader market.