Guidance Galore
When queried, Mario Draghi said that the launch of more explicit forward guidance by the ECB and BoE within 90 minutes of each other was a coincidence. Conspiracy theorists may beg to differ, but in hindsight it is no surprise they behaved as such. The Fed (and to a lesser extent, the BoJ) has forced their hand there was a need to respond accordingly. Payrolls pending, the recent ‘qualitative shifts’ in monetary policy now look complete. Consistence is lacking, but the moves against the Fed may just be what the global economy needs at this point.
Read the full report: UBS