- Analytics
- News and Tools
- Market News
- Central banks sounding rather aggressive - ABN AMRO
Central banks sounding rather aggressive - ABN AMRO
Han de Jong, the chief economist at ABN AMRO, notes the ECB president Mario Draghi has signaled that the European regulator will provide more stimulus.
- “We had assumed that the ECB will restart purchasing assets. But we had also presumed they would leave the already negative deposit rate unchanged. Mr. Draghi said explicitly that cutting rates further is a policy option that is on the table.
- Mr. Draghi’s opposite number at the US Federal Reserve, Jay Powell, spoke at the press conference following the Fed’s policy meeting last Wednesday. He also signaled easing and we are confident that the Fed will cut rates at their next meeting on the last two days of July.
- What surprised us a little, or even more than a little, is that Powell appeared to keep open the option of cutting by 50 bp. The market has been pricing in some rate cuts for some time. Most people worry that the market has gotten a little ahead of itself. If the Fed cuts rates, but by less or fewer times than the market is pricing in, then there could be a negative market reaction. I would have thought that there was no need to be egging the market on in terms of their rate-cut expectations. Yet, that is effectively what Powell did. Markets responded positively. He’d better deliver.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
