Divergent views among central banks may continue
While the ECB has started to tighten monetary policy, the BoE and the Fed have remained on hold. Recent comments from different central bank officials indicate that differences in policy stance may continue. For the ECB the next natural step appear to be the withdrawal of unconventional
policy…
BoJ leaves policy unchanged but pressure for further stimulus remains
The BoJ at its latest MPC meeting, as expected, kept its asset-purchase fund unchanged at JPY10trn, maintaining its JPY30trn credit loan programme and overnight rates at zero to 0.1%. Pressure for the Central Bank to provide additional stimulus remains firmly in place, given the scale of economic…
Deficit too large for gimmicks to work for long – US Rates Weekly
Report: US Treasury has limited room on its 2 August debt deadline as HSBC FI Research’s analysis shows that the deficit is too large to continue.
Comparing the deficit number with the 1995-96 government shutdown reveals that it is running roughly at 40% of total outlays (USD 3.7trn) now versus just 7%…
Leandro Galli
HSBC Global Research