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Monetary policy bonanza

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  • The ECB is not seen announcing quantitative policy today - an open ended commitment to target the quantity of money is not really credible, given the likely challenges to any such policy.
  • We see details of the Euro asset backed securities program being announced, along with rhetoric about the willingness to do more in the future. The ECB will want to influence expectations without committing to anything too specific.
  • The Bank of England is not likely to make any change in policy today, but with two dissenters at the last meeting the Bank is leading the race to be the next central bank to tighten, assuming no disruption from the Scottish referendum result.
  • The Fed's Beige Book was rather uninteresting (that does raise a slight concern that the Fed may be behind the curve). Fed President Fisher, in the midst characteristically hawkish remarks, suggested that the plan for unwinding quantitative policy may be almost in place.