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The ECB – Not the time for tapering

  • The future of the ECB’s QE programme has become a subject of intense speculation.
  • Given the underwhelming economic outlook and banana-skins ahead, the ECB would be foolish to taper.

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Sterling – far from flash

The past week has seen sterling perform the worst of all the world’s currencies. And with the UK Government seemingly careering headlong into a hard Brexit, it looks set to fall further from here.

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Kuroda does what he can (but it won’t be enough)

  • The BoJ announced a yield curve control framework and its commitment to over-achieve on its inflation target.
  • But without a fundamental shift in the macro policy mix, rates may have to stay at or below current levels for the next decade or beyond.

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BoJ: Scraping the barrel?

  • The outcome of Wednesday’s BoJ meeting is highly uncertain.
  • But those expecting a step-change in policy are set to be disappointed.

Can the BoJ reduce collateral damage?

For a man who had got used to generating reams of positive headlines in his early days as BoJ Governor, Haruhiko Kuroda’s recent meetings have fallen flat. The surprise introduction of negative rates at the start of the year received distinctly mixed reviews, while last week’s failure to do little more than announce a small increase in purchases of ETFs proved distinctly underwhelming.

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