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Central banks take center stage

  • Central banks steal much of the limelight today, although ironically the policy decisions from the Bank of England and the European Central Bank are likely to be the least interesting incidents. We do not expect anything from either of them.
  • The ECB press conference lends itself to a range of interesting questions outside the direct field of interest rates. Currencies (in the wake of Franco- German disputes), bank regulation (with Mr Draghi's time at the Bank of Italy in question), Spain and Cyprus are possible topics of interest.
  • Bank of Canada governor Carney is due before the UK Treasury Select Committee in his role as BoE governor designate. While much attention will be paid to his comments, it is worth remembering that his voice will be only one voice among many on the MPC.
  • Newswires are reporting that the Bank of Japan will leave policy unchanged at next week's meeting (if the meeting is next week, how can they know?). Markets are reacting to suggestions that the 0.1% floor for short term rates will be lifted - two year JGB yields dropped to 0.03% (sic).

Listen to the audio version of this briefing.