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Martial law and monetary policy

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  • The military in Thailand have declared that they have not held a coup d'état, they have merely imposed martial law without asking anyone (to be fair, part of the country was already under martial law). Currency and equity markets have reacted somewhat negatively.
  • Both the Fed speakers yesterday indicated that rates should rise in 2015 (after quantitative policy concludes this October). We have two more Fed speakers scheduled to speak today.
  • The UK hits markets with retail, consumer and producer prices, but for policy makers the most pertinent measure right now is probably the release of house price data - given the focus that the Bank of England (and the media) are placing on this topic.
  • The Euro area offers little other than a lone ECB speaker, which is not much to distract markets. There was a brief flurry in Australia on a suggestion that the AAA credit rating might be vulnerable, but the credit rating agency backtracked with well accustomed ease.

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