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When doing nothing means something

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  • The Fed did not surprise - quantitative policy is still being guided by the invisible hand of Ben Bernanke, Yellen had a dovish accent to her press conference, and points moved to slightly different places in a largely meaningless manner.
  • The Bank of England was at least more explicit than the Fed in its minutes - laughing openly at market investors for the naivety of their interest rate assumptions, and musing about whether the spare capacity had gone from the UK economy.
  • Monetary policy excitement is not over yet, for the Swiss National Bank reports today, with the dilemma of having pegged their lot to a currency with negative rates. We expect unchanged rates and quite a lot of finger crossing.
  • UK retail sales are due, distorted a little by the early April. The US Philly Fed manufacturing sentiment survey is also scheduled. The Eurogroup meet in Europe, but all the Eurogroup ever produces is a leaden feeling of quiet despair.

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