Back
3 Oct 2013
Flash: G10, More hawks than doves?
FXstreet.com (London) - Jane Foley, Senior Currency Strategist at Rabobank said the impact on markets of the continued stalemate in Washington has been limited by the assumption that the Federal Reserve will continue on its aggressive QE policy for longer to limit the negative fallout on economic growth.
Key Quotes:
“In Japan confirmation that the consumption tax hike will go ahead next April has been greeted by speculation that the BoJ could step up its very generous monetary policy to insure against risks that the economic recovery could fizzle out”.
“Yesterday, ECB President Draghi reiterated his pledge that the Bank is ready to use any policy option to keep money market rates lows”.
“There is also speculation that the RBA may yet ease once more this cycle”.
“The dovish positions of these central banks, however, is in sharp contrast to the tone of some others within the G10 space”.
Key Quotes:
“In Japan confirmation that the consumption tax hike will go ahead next April has been greeted by speculation that the BoJ could step up its very generous monetary policy to insure against risks that the economic recovery could fizzle out”.
“Yesterday, ECB President Draghi reiterated his pledge that the Bank is ready to use any policy option to keep money market rates lows”.
“There is also speculation that the RBA may yet ease once more this cycle”.
“The dovish positions of these central banks, however, is in sharp contrast to the tone of some others within the G10 space”.