March 7, 2017 | Daily JAM, Morning Briefing |
Ahead of Thursday’s meeting of the European Central Bank futures markets have started to raise the odds that the bank will start raising its benchmark deposit interest rate beginning in April 2018. The market was putting the odds of an April increase at 20% last month. Those odds have now climbed to 40%, according to Bloomberg.
January 19, 2017 | Daily JAM, Morning Briefing |
Confronted with German criticism of the asset buying stimulus program at the European Central Bank and German fears of resurgent inflation, bank president Mario Draghi advised patience today. “As the recovery will firm up, rates will go up as well,” Draghi told reporters after today’s meeting of the central bank’s board of governors.
January 18, 2017 | Daily JAM |
To subscribe to JAM you need to fill in some details below including, ahem, some info on how you'll pay us. A subscription is $199 (although if you're subscribing with one of our special offers it will be lower) for a year for ongoing and continuing access to the...
December 4, 2014 | Daily JAM, Morning Briefing, Short Term |
Wait ‘til next year for a big expansion of asset buying that is likely to include big purchases of sovereign debt. That was the message from European Central Bank President Mario Draghi today. Financial markets might have been hoping for more, but this is about as fast as Draghi can move while pulling reluctant members of the bank along with him.
November 21, 2014 | Daily JAM, Morning Briefing, Short Term |
After a year and a half of trying—and largely failing—to stimulate China’s economy by supplying more funds to the country’s banking system, today the People’s Bank of China went back to its demand side tools and cut the benchmark one-year deposit rate and the one-year lending rate for the first time since July 2012
September 18, 2014 | Daily JAM, Morning Briefing |
The tepid demand raises the odds that the bank will have to begin a program of asset purchases sooner rather than later in order to hit its goal of expanding its balance sheet back to the $3 trillion mark.
September 4, 2014 | Daily JAM, Morning Briefing |
Moves of this magnitude won’t have any effect on EuroZone growth rates or inflation. Instead they’re best seen as a promise that next meeting the ECB will begin a program of asset purchases.
September 3, 2014 | Daily JAM, Morning Briefing, Short Term |
In the long run the EuroZone’s central bank has a problem: It’s not clear that even any of the radical and controversial (inside the bank anyway) measures the bank seems to be contemplating would actually do anything
August 26, 2014 | Daily JAM, Morning Briefing, Short Term |
The rally in European government bonds continued as a government crisis in France increased odds that the European Central Bank will move to adopt a Federal-Reserve-style program of asset purchases
June 5, 2014 | Daily JAM, Morning Briefing, Short Term |
Draghi’s moves today amount to a bet that if you throw enough cash at banks—and charge them for keeping it on the sidelines—they’ll rev up their lending machines.
May 31, 2014 | Uncategorized |
To subscribe to JAM you need to fill in some details below including, ahem, some info on how you'll pay us. A subscription is $199 (although if you're subscribing with one of our special offers it will be lower) for a year for ongoing and continuing access to the...
May 9, 2014 | Daily JAM, Morning Briefing |
At its meeting yesterday the European Central Bank didn’t take any action on slow economic growth in the EuroZone or on an inflation rate so low that it threatens to turn into deflation. But, said bank president Mario Draghi, the ECB is “comfortable with acting next time.”