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Tightening time

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  • Turkey's central bank raised rates (by up to 5.5% depending on which of the man, many interest rates one follows) and promised to simplify the monetary policy structure. The move was at the top end of expectations and should bring stability for now, but it is a monetary policy measure to deal with a monetary and fiscal problem.
  • With emerging markets somewhat calmer attention should turn to the US. We see the Federal Reserve scaling back its bond buying by another USD10bn today. Economic and financial market conditions have improved since the December FOMC and there is no reason to deviate from the pre-determined path.
  • Euro area M3 money supply is due, and although not that attention grabbing of itself it does give some indication on how the Euro are monetary transmission mechanism is going.
  • Bank of England governor Carney will be speaking (with a Canadian accent), and perhaps guiding as to what he wants to do now that his guidance of forward guidance has lost credibility. House price data from the land registry is also scheduled.
 
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