Good morning. The European Central Bank is clearly going to need to get far more aggressive in its easing campaign as the continental economy, led by the underperformance of Germany and France, slips back into pull of recession’s gravity. The ECB should now consider a 50-basis point cut at its next ... READ MORE >
European Central Bank
The case for rate cuts: Read our chief economist’s op-ed in Barron’s
With inflation coming under control around the world, major central banks have embarked on a shift in monetary policy to spur demand and foster economic growth, In the past two days, the Bank of Canada and European Central Bank kicked off this regime change with the announcements of 25 basis-point ... READ MORE >
Global central bank policy pivot continues as ECB cuts rate
The European Central Bank reduced its policy rate by 25 basis points on Thursday which, following the 25 basis-point rate reduction by the Bank of Canada on Wednesday, represents the first in what we expect will be a series of rate cuts by the G7 central banks this year. The moves in Europe and Canada ... READ MORE >
Global central bank outlook: Reducing rates to bolster growth
After two years of major central banks raising interest rates, the weighted global policy rate stands at a restrictive 7.2%. But with disinflation having taken hold around the world, it is time for central banks to reduce these rates. Usually, the Federal Reserve would lead the way. But with private ... READ MORE >
Coordinated central bank action follows the Credit Suisse-UBS merger
Global financial stress accelerated over the weekend, requiring coordinated action by central banks to stem dollar funding pressures in financial markets as investors digested the forced merger of Credit Suisse and UBS. Large additional tier one bondholder losses amid the $275 billion ... READ MORE >