from MacroScope:

Rampant inflation to keep Russian central bank tight

By Mike Peacock
January 30, 2015

Russian roubles are seen in this illustration picture taken in Moscow

Russia’s central bank meets having shoved interest rates up to an eye-watering 17 percent late last year.
The central bank has said rates can only come down if inflation was trending lower. It was running above 11 percent last month and the government expects it to peak at 17 percent.

from Morning Bid with David Gaffen:

Better Fed than dead

January 29, 2015

The Federal Reserve's policy announcement on Wednesday pretty much reinforced the status quo, which is that the Fed is the immovable object when it comes to markets.

from MacroScope:

EU ponders another round of Russia sanctions

By Mike Peacock
January 29, 2015

Ukrainian servicemen sit atop an armored personnel carrier as they patrol Orekhovo village in Luhansk

EU foreign ministers hold an extraordinary meeting today after their leaders have asked them to consider possible new sanctions on Russia. A final decision to impose them is likely to be left to their bosses who meet in next month and again in March.

from MacroScope:

Russia invites new sanctions

By Mike Peacock
January 28, 2015

Ukrainian servicemen stand guard on a street near the burning building after a shelling by pro-Russian rebels of a residential sector in Mariupol, eastern Ukraine

Ukrainian separatists said they had pushed government troops out of two districts on the outskirts of their main stronghold Donetsk and their aim was to expand control to the entire eastern region.

from MacroScope:

Ripples from ECB even before it acts

By Mike Peacock
January 20, 2015

Draghi.jpg

The prospect of dramatic European Central Bank action – coupled with the deflationary threat posed by a plunge in the price of oil and the pain it inflicts on oil producing countries – is putting the financial system under growing stress.

from MacroScope:

Volatility back with a bang

By Mike Peacock
January 16, 2015

The logo of the SNB is seen at the entrance of the SNB in Bern

Volatility is back with a bang.

The Swiss franc leapt by an unprecedented 40 percent at one point after the Swiss National Bank scrapped its currency cap out of the blue. Oil may have bounced but it’s still down the thick end of 60 percent since mid-2014, dragging the rouble and other oil-producer currencies with it. Copper, generally a barometer of world industrial demand, is barely finding its feet after plunging this week.

from Breakingviews:

Asia’s big demons: debt, deflation, demographics

January 16, 2015

By Andy Mukherjee

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

from MacroScope:

Politics to trump law in QE decision

By Mike Peacock
January 15, 2015

Deutsche Bundesbank President Weidmann arrives for the annual news conference in Frankfurt

If the law was the ultimate arbiter, the European Central Bank would have the most verdant of green lights for an unlimited bond-buying programme with new money. In reality, politics and German concerns will dictate.

from MacroScope:

Major central banks set to go their own way, with some risk

January 9, 2015

Real interest rates of world's major central banks

Real interest rates of world's major central banks

The world's major central banks have long followed the same general flight path, guided by the economic winds of growth, inflation and financial markets. It has worked pretty well for policymakers in the United States, Europe, Japan, and the United Kingdom: moving together to tighten or loosen monetary policy makes things more predictable for citizens, businesses and investors. It also serves as buffer to any volatile currency movements, at least among developed economies. But six years after the worst recession in decades, this could be the year central bankers split off and - with some risk - go their own way.

from Breakingviews:

Meddling will be central banking’s new mantra

December 23, 2014

By Andy Mukherjee

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.