By Edward Hadas
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
European Central Bank President Mario Draghi pushed the envelope as far as he could last week, saying a review early next year would decide whether money-printing to buy government bonds was needed. He said he didn’t need unanimity within the ECB to force it through.
The rout in oil will have wider reaching consequences yet.
The Organization of Petroleum Exporting Countries’ decision not to cut production amid slowing demand coupled with large increases in U.S. oil output has skimmed some $40 off a barrel of oil inside of five months.
So much for forward guidance. More Britons have no idea where interest rates are heading than since records began 15 years ago, according to the latest Bank of England/GfK NOP survey.
The Dow Jones Industrial Average hit a record high for the third straight day this week. The S&P 500, since breaking the 2,000 level on Oct. 31 has since remained above that level.
Two vital gauges of euro zone progress, or lack of it, today.
German inflation for November is forecast to slip to 0.6 percent and will cue up the euro zone figure on Friday, which is predicted to come in at just 0.3 percent. Spanish inflation, due earlier, is forecast to come in at -0.3 percent.
Even as the expected date for an eventual interest rate rise in the U.S., Britain and Canada keeps getting pushed further into the future, the outlook for residential housing markets in these countries is also starting to cool.