Category Archives: Monetary Policy

Economic Growth and Asset Prices…..

Posted on September 26, 2016 by VMcCarthy

The OECD released their latest Interim Economic Outlook, warning that “the global economy is projected to grow at a slower pace this year than in 2015, with only a modest uptick expected in 2017”. This is another case of groundhog … Continue reading →

Posted in Crisis, Decision Making, Economy, Financial Markets, Forecasting, Inflation, Monetary Policy, Risk, Thoughts | Comments Off

Key points from Janet Yellen’s speech

Posted on August 29, 2016 by VMcCarthy

In April I wrote a blog “Central banks and the certain uncertainty paradox”, reminding everyone that these institutions are no more certain than anyone else about how economic conditions will unfold. Still, market participants continue to hang on every word … Continue reading →

Posted in Bond Markets, Decision Making, Economy, European Central Bank, Financial Markets, Forecasting, Monetary Policy, Thoughts, US Federal Reserve | Comments Off

Central bank liquidity keeps everyone dancing

Posted on August 7, 2016 by VMcCarthy

While the Bank of England (BOE) surprised markets by holding interest rates steady in July, the Bank announced an aggressive package of measures at their meeting on Thursday that had financial markets salivating once again. This package, intended to lower … Continue reading →

Posted in Bank of England, Bank of Japan, Monetary Policy, Thoughts, US Federal Reserve | Comments Off

Gold, scarcity and supernovas

Posted on August 1, 2016 by VMcCarthy

“There is something a bit odd about the value we attach to gold. Throughout history people have gone to extraordinary lengths to get their hands on this most precious substance which is strange because it is isn’t particularly useful for … Continue reading →

Posted in Bond Markets, Commodities, Crisis, Financial Markets, Inflation, Monetary Policy, Risk, Thoughts | Comments Off

Central bank policy has its limits

Posted on July 3, 2016 by VMcCarthy

Central bank policy remains the predominant theme in financial markets, hence when the leaders of these institutions speak everyone listens. Last week, ECB President Mario Draghi gave a speech entitled “The International Dimension of Monetary Policy”, in which he subtly … Continue reading →

Posted in Bank of England, European Central Bank, Monetary Policy, Risk | Comments Off

Central banks and the certain uncertainty paradox

Posted on April 3, 2016 by VMcCarthy

“Uncertainty is an uncomfortable position. But certainty is an absurd one.” – Voltaire US Federal Reserve Chair Janet Yellen lifted markets midweek by pouring cold water on recent comments from a number of regional US Federal Reserve Presidents. In a speech … Continue reading →

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US Fed Policy: A Much More ‘Gradual’ Path

Posted on February 7, 2016 by VMcCarthy

Global equity markets sold off sharply last week, as weak economic data outweighed the recent positivity generated by the prospect of more easing from the Bank of Japan (BOJ) and the European Central Bank (ECB). Much of the focus was … Continue reading →

Posted in Bank of England, Bank of Japan, Bond Markets, European Central Bank, Financial Markets, Monetary Policy, Thoughts, US Federal Reserve, Volatility | Comments Off

Weekly Market Update: February 1st 2016

Posted on February 1, 2016 by VMcCarthy

Market Recap Global equity markets enjoyed another positive week, buoyed by further support from the major Central Banks, this time the Bank of Japan (BOJ) with the introduction of negative interest rates. As well, speculation of a possible production cut … Continue reading →

Posted in Bank of Japan, Economy, Equity Markets, Financial Markets, Market Recap, Monetary Policy | Comments Off

Weekly Market Update: January 18th 2016

Posted on January 18, 2016 by VMcCarthy

Market Recap Sentiment in global equity markets last week resembled the atmosphere in Anfield yesterday after the final whistle. Like most equity investors, transfixed by the continuous stream of red as market participants rushed for the exits, Liverpool fans were … Continue reading →

Posted in European Central Bank, Financial Markets, Football Related & LFC, Market Recap, Monetary Policy | Comments Off

Rate hike this week from the US Federal Reserve

Posted on December 14, 2015 by VMcCarthy

To raise or not to raise? That has been the question for a long time now for the US Federal Reserve’s monetary policy committee. Year after year, meeting after meeting, the Fed have pushed out the timing for US rate … Continue reading →

Posted in Financial Markets, Monetary Policy, US Federal Reserve | Comments Off