Inflation, deflation, and central banks
- French PM Valls told Les Echo that he would like to see the ECB do more.Crossing the monetary policy Rubicon and risking the enmity of the German middle class by taking rates negative is not, it seems, enough.
- Over in Japan the Tankan updated us all with corporate inflation expectations. Corporates are not particularly adept at forecasting consumer prices as a rule (only economists are adept at such things) but overall inflation expectations are stable - and below the BoJ target.
- The UK saw inflation of house prices, at least according to the Nationwide survey, with an 11.8% yoy rate and some rather dismissive comments about the ability of the BoE to do anything about it. Construction sector sentiment is due.
- US Fed Chair Yellen is speaking on financial stability (one assumes she is in favour). While not immediately policy sensitive this may be important, as future monetary policy may well rely on financial regulation as much as interest rates.
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