8/25/2014 0 Comments
Wait And See Central Banks
With Jackson Hole over the central banks measures look to be set for more wait and see. The ECB tried to sooth ensure markets that it will take the necessary steps to prevent deflation if need be. But commented that there would need to be more action taken by respective countries, the BOE is still split on when rates should be raised, and the Fed is still looking to see what the mixed employment figures mean for inflation expectations and the economy.
This puts alot of emphasis on the data due out in the coming months to determine what actions should be taken. The difficulty in doing the right thing lies with the ECB where a stimulus as seen in the US and UK would be difficult to implement. This make me believe that matters would have to continue to get worse in order for action to be taken in a shorter time frame. With the majority of UK exports still EU bound it will be interesting to see how rate increases will fare in the wake of weakness in the largest trading zone.
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