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Reducing and increasing quantitative policy

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  • With the US Fed meeting next week, markets are likely to focus more on monetary policy risks ahead than on current events. The evidence that the US consumers' passion for the shopping mall is undimmed has increased debate about the timing of a taper.
  • There are a couple of ECB speakers today, including Praet - whose remarks earlier this week around the asset quality review for banks raised some interest. Banking regulation is important in 2014, so further comments will be looked to, but is unlikely to move markets in the near term.
  • Spanish consumer price inflation is due - this is not normally worthy of that much comment, but concerns amongst investors about the potential for deflation perhaps raise the profile of this sort of release.
  • The Bank of Japan's Kuroda has indicated that the central bank will keep printing money beyond the announced two year program (hardly a shock). Around three quarters of investors surveyed in a poll released overnight expect the BoJ to be forced to print even more than announced in 2014.

Listen to the audio version of this briefing.