Why BoE is Expected to Ease and ECB is Not

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.

What are Central Banks Expected to do in 2012?

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!