BOJ EXTENDS ASSET BUYING, SPECIAL FUNDING OPS UNTIL SEPT 2021 TO FIGHT COVID DRAG; TO REVIEW EASING TOOLS
By Max Sato (MaceNews) – The Bank of Japan Friday offered an early Christmas gift by extending the period of increased financial asset purchases and special funding operations aimed at promoting more lending to cash-strapped small businesses by six months until the end of September 2021. After a regular two-day policy meeting, the bank’s nine-member […]
BANK OF ENGLAND LEAVES POLICY UNCHANGED, BUT EXTENDS LENDING SCHEME
—MPC Hints at Symmetric Stance on Inflation Target, Willing to ‘Tolerate’ Inflation Overshoot By Laurie Laird LONDON (MaceNews) – The Bank of England left its main policy tools on hold after its latest rate-setting meeting on Wednesday, but extended the time frame of its supplemental lending scheme and hinted at a more symmetrical approach to […]
FED’S POWELL: TO TAKE A LONG TIME TO RAISE INFL RATE
–Virus Resurgence to Hit First-Quarter Economy By Denny Gulino WASHINGTON (MaceNews) – Federal Reserve Chair Jay Powell Wednesday said reaching the inflation target is going to take “some time” in an environment of disinflation around the world, when price pressure in any sector is no longer persistent. In the near term, however, he warned the […]
FOMC: RATES NEAR ZERO THRU 2023
WASHINGTON (MaceNews) – The Federal Open Market Committee, as expected, stood still in its latest policy statement Wednesday, accompanied by quarterly projections that saw the federal funds rate at 0.1% through 2023. The following is the text of the FOMC statement: The Federal Reserve is committed to using its full range of tools to support […]
PREVIEW: FOMC TO REAFFIRM EASY MONEY POLICY; EXTEND FORWARD GUIDANCE TO BOND BUYING
By Steven K. Beckner (MaceNews) – For the Federal Reserve these days, it’s all about shaping and managing expectations – expectations for indefinite continuation of ultra-accommodative monetary policy. That effort will continue at the Fed’s Dec. 15-16 Federal Open Market Committee meeting. The FOMC heads toward its final meeting of 2020 amid very unusual circumstances […]
ECB EXPANDS EMERGENCY QE, LENDING PROGRAMMES; LEAVES RATES ON HOLD
–Inflation Forecast Reduced for 2020; HICP Not Expected to Reach Target Before 2024 By Laurie Laird LONDON (MaceNews) – The European Central Bank Thursday expanded its emergency asset purchase and lending programmes at its latest policy meeting but left its key rates unchanged, raising questions about whether European borrowing costs have reached its so-called “reversal […]
STATUS CHECK: RUMOR CHECK – 2020 WILL END AT SOME POINT
WASHINGTON (MaceNews) – The following is Friday’s status check of developments in the U.S. that can influence economic, health and political outcomes. Wait, this just in. The Brexit talks have fallen apart. You don’t look surprised. Or even interested. Someday a headline will flash. Brexit Talks Fall Together. Time is running out, after all. The […]
NOTED BOE DOVE ADOPTS MORE CAUTIOUS TONE ON NEGATIVE RATES
By Laurie Laird LONDON (MaceNews) – One of the more dovish Bank of England rate setters has adopted more cautious view toward sub-zero interest rates in the UK, stressing that the development of a Covid vaccine could herald a more-rapid-than-expected return to normal financing conditions. Silvana Tenreyro, an external member of the Bank’s Monetary Policy […]
BOE OFFICIAL: FURTHER UK QE MORE EFFECTIVE WITH RATE CUT
—MPC External Member Saunders Also Sees Merit in Sub-Base Rate lLnding to Corporates By Laurie Laird LONDON (MaceNews) – Any expansion of quantitative easing will pack a greater punch if coupled with a rate cut, according to a key Bank of England official, who believes that borrowing rates in the UK have yet to reach […]
BOE RATE SETTER: COVID VACCINE DOES NOT REDUCE NEED FOR ASSET PURCHASES
— External MPC member Tenreyro makes strong case for negative interest rates in the UK By Laurie Laird LONDON (MaceNews) – The rapid development of a Covid vaccine could actually strengthen the case for expanded quantitative easing in the UK, with the benefits of a jab likely to lift the economy only gradually, a Bank of England […]