PA Analysis: Chinese QE more curse than blessing?
Expectation is mounting that China is planning its own version of quantitative easing and investors weighing up how to play the world’s most populated country may struggle to assess the situation.
Monetary Policy
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Bank of england minutes pointing to 2016 raise
The minutes from the last Bank of England monetary policy meeting have revealed there remains little dissent within the committee, with all members united in holding rates steady at 0.5%.
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Inflation to hit 2% in two years, but productivity remains key – bo e
Inflation should return to its 2% target within the next two years, the Bank of England said on Wednesday, but labour productivity remains the key uncertainty, as it downgraded its forecast for UK GDP growth from 2.9% for 2015, to 2.5%.
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China rate cut seen as latest in a series
China’s interest rate cut announced over the weekend is widely expected to be just the latest move in a monetary loosening process that could ultimately end in quantitative easing.
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‘levi’s market’ set for policy convergence – rathbones
Policy divergence will reach a breaking point and either drag the US and UK back into quantitative easing or trigger widespread reflation, says Rathbones’ Bryn Jones.
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QE ‘second wind’ could create corporate bond opportunity – RBC WM
Investors are set to benefit from a quantitative easing ‘second wind’ which will create opportunity in the corporate bond sector, says RBC Wealth Management’s Hakan Enokssen.
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Middle ground muddy as investment views polarise
Unemployment in the UK fell to 5.6% in the three months to February, the office for National Statistics said on Friday, the lowest level since 2008. At the same time, the number of people in employment rose to a record of 31.05m.
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Return free risk and the quagmire of caution
The last five years have seen the fewest high yield defaults in modern history, Deutsche Bank reported on Wednesday.
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Fed no longer patient but still dovish
Federal Reserve chair Janet Yellen dropped the word patient from her rhetoric at the March FOMC meeting as anticipated, but soothed markets with alternative language which was equally dovish.
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Liquidity index raises doubt on US economy
The Global Liquidity Index has shed light on the extent to which the rise in the value of the US dollar is being driven by monetary policy made in Frankfurt and Beijing, rather than Americas economic strength.
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MPC still split on rate hike
The Bank of England monetary policy committee is still split seven-two on whether the UK interest rate needs to be raised, minutes released today show.
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US doves on top as jobs number misses forecasts
Monetary policy doves have had their position boosted by a US non-farm payroll number for August which significantly undershot most forecasts.