ECB holds rates unchanged but Draghi leaves door open for more stimulus in December

The European Central Bank left ultra-loose monetary policy unchanged on Thursday but kept the door open to more stimulus in December, firmly shooting down any talk of tapering its 1.7 trillion euro asset-buying program. Offering few clues to the euro zone central bank’s next move, ECB President Mario Draghi left a wide range of options on the table and emphasized that a long-awaited rise in inflation is predicated on “very substantial” monetary accommodation…

BOE’s QE: A hidden tax on the wealth of middle-class savers and pensioners?

The prolonged unconventional, quantitative easing (QE) monetary policy of the Bank of England has effectively hijacked fiscal policy from the government, with disastrous effects on savers and pensioners and in a way that makes wealth inequality worse more generally. The reasons for this are subtle, which is why they are also insidious…

ECB holds rates unchanged but leaves door open for QE extension

European Central Bank President Mario Draghi Thursday left the door open to an extension of his bond-buying program beyond March 2017, as his economists lowered their growth and inflation forecasts for next year only slightly. Earlier Thursday, the ECB left all of its key interest rates unchanged, holding off on shifting its main policy levers, even as inflation in the 19-country currency bloc remains stubbornly low…

BOE’s bond-buying failure suggests monetary policy won’t be enough to boost growth

The activities of the Bank of England in the City’s gilts’ market tend to be for the initiated only. This week, though, they have become rather like archery or trap shooting: fascinating when the Olympics roll round. So it was that the markets were agog on Wednesday to see whether Threadneedle Street would be able to attract enough sellers for the bonds it wanted to buy as part of its post-Brexit stimulus package…

BOE’s post Brexit plan stumbles as £1.17bn long-dated gilts buy back falls short

The Bank of England’s post-Brexit economic recovery plan got off to a stumbling start when it was unable to buy as many government bonds as it needed from major City investors. Threadneedle Street will spell out on Wednesday how it plans to get reluctant investors to part with government bonds – also known as gilts – in order to provide additional stimulus to the economy under its new £60bn quantitative easing (QE) programme…

Bank of Japan could deploy ‘helicopter money’

This weekend saw a stark change-of-pace in price action trends around Japanese markets. After Shinzo Abe’s coalition won a super-majority in the upper-hours of Japanese parliament, resistance has been lessened for the push for constitutional reforms and additional economic stimulus. This provided a significant move of weakness in the Yen as the prospect of even more intervention became a much more likely prospect for the island nation.

Fed chair Yellen rejects notion of ‘third pillar’ of policy, very hopeful for economic growth

Fed Chair Janet Yellen rejected the notion that the Fed has a “third pillar” of policy to keep stock market prices afloat. On the second day of her semiannual congressional testimony Wednesday, Yellen was asked by Rep. Edward R. Royce, R-Calif., whether the U.S. central bank’s monetary policy is tied to boosting Wall Street’s equity values — in effect a “third pillar” to go along with the Fed’s dual mandate of full employment and price stability…

ECB likely to ease policy next meeting, Chinese economic data in focus

The European Central Bank is almost certain to ease policy next week as depressed commodity prices raise the risk of deflation, while a string of data from China will offer clues about the extent of the recent emerging market slowdown. Growth in most key economies has slowed this year as states such as China to Brazil attempt to rebalance, weighing on global demand and sending deflationary waves around the world through sharply lower oil and metals prices…

BOE’s recovery policies have worsen inequality, increased wealth gap: S&P

Bank of England policies to help Britain’s economic recovery have made inequality worse and increased the wealth gap between young and old, according to a leading credit ratings agency. A study by Standard & Poor’s has found thatthe low interest rates and quantitative easing used to rescue the economy after the 2008 crash have handed extra wealth to the richest households by propping up stock markets and supporting booming house prices…

ECB paves way for QE expansion as it cuts growth, inflation forecasts

The European Central Bank cut its inflation and growth forecasts for the euro zone on Thursday and its president said things could get worse. The euro fell 1 percent on the moves and comments, hitting a two week low. Mario Draghi, the ECB president, pledged to beef up or prolong the bank’s bond-buying program if the picture indeed darkened further, although he said no one on the bank’s Governing Council had argued for it now…

ECB committed to full QE program, grants continued support for Greece

(Reuters) – The head of the European Central Bank pledged on Wednesday to roll out its money-printing program ‘firmly’ and granted continued backing for Greece, saying there was no need yet to limit emergency funding for its banks. Describing speculation that the fledgling 60 billion euro a month scheme would be scaled back as “surprising”, Mario Draghi underlined his determination to see through quantitative easing until September 2016…

QE finally comes to Europe as ECB started buying bonds on Monday

Better late than never! Europe is finally getting the massive monetary stimulus launched years ago by the United States, Britain and Japan. The European Central Bank started buying bonds issued by governments in the eurozone Monday, marking the beginning of a one trillion euro ($1.2 trillion) program aimed at boosting inflation and reviving the economy. […]

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