European central bankers resist pressure for Fed fireworks
Simon Ward
Post a Comment
Today’s decisions by the MPC and ECB were refreshingly boring.
The MPC cut Bank Rate by 25 bp and issued a balanced policy statement referring again to the opposing risks posed by slowing growth and elevated inflation expectations. Unlike the ECB, the MPC does not use these statements to signal its intentions, which will be communicated in next week’s Inflation Report.
The ECB statement retained references to upside inflation risks and a need to “monitor very closely” all developments but indicated heightened uncertainty and greater concern about the outlook for economic activity. The changes were marginal but consistent with the view that events are playing out similarly to early 2001, in which case rates are likely to be cut some time in the second quarter – see last post.
View Printer Friendly Version
Email Article to Friend
Reader Comments