IS THE BOE INCREASING RATES THIS YEAR?
Probability of a rate reduction in the UK this year rose to 53% yesterday. This is based on overnight index swap rates.
China’s services sector growth decreased to the lowest level since February. The main reason behind this slowdown is a reduction in foreign demand.
US and European equities experienced a significant up move in the past few days on the back of expectations for looser monetary policy at major central banks around the world.
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Lagarde and the ECB
Lagarde has not given monetary policy speeches worth highlighting here, however she is open to unconventional monetary policy and does not rule out new economic thinking. Her reliance on IMF staff implies no imminent change in ECB monetary policy .
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