I was on CNBC Asia last week talking about how proactive the ECB will be in light of Europe’s sovereign debt troubles. Sorry for the late post!
I was on CNBC Asia this morning talking about the potential for a deep market correction over the next few months and the degree of Renminbi undervaluation.
Both the Bank of England and the European Central Bank will be making monetary policy announcements on Thursday. The market expects the ECB to remain on hold and BoE to increase their asset purchase program by GBP 50 billion. A quick look at the following tables explain why the BoE is expected to ease and the ECB is not. Since the last monetary policy meeting, Eurozone economic data was neutral / mixed to bullish. U.K. data on the other hand was neutral / mixed to bearish.
The New Year has begun and it is important to see what the market is pricing in for central banks this year. As you may know, central bank rate hike expectations change often but as of last week, most central banks are expected to keep monetary policy unchanged in the coming year but one is expected to ease aggressively. Find out who below!
Federal Reserve – No Changes in 2012
European Central Bank – Possible 25bp Cut before Year End
Bank of England – No Changes in 2012
Bank of Canada – No Changes in 2012
Reserve Bank of Australia – Aggressive Rate Cuts this Year, 25bp by March!
Reserve Bank of New Zealand – No Changes in 2012
And here are the details!
I was on CNBC this afternoon with Maria Bartiromo talking about the outlook for the USD, EUR and my favorite trade