As impeachment of President Dilma Rousseff grows more likely, chances are rising that Brazil’s central bank may also go under new management in a matter of months.
Financial markets and borrowers rooting for the Reserve Bank of India to ease policy this year could be in for a disappointment – in stark contrast to 2015 when it lopped 125 basis points off the repo rate.
Not long ago, the big debate was over who would raise rates first, the U.S. Federal Reserve or the Bank of England. Now with the Fed giving clear signals it’s on the brink of hiking and the BoE appearing to be pushing that day further off into the future, one could naturally conclude that the inflation outlook in both economies is vastly different.
For the European Central Bank, digging deeper into quantitative easing may be the only policy option left, now that growth in bank lending to businesses is stalling again.
Greece’s European lenders have played down hopes of a swift end to aid negotiations and said talks must speed up before the country runs out of cash. That contrasted sharply with optimism in Athens where a series of top officials asserted that a deal was just days away.
In an epic late-night talk show appearance, Greek Finance Minister Yanis Varoufakis said his government was nearing a cash-for-reforms deal with its euro zone partners and the International Monetary Fund that would help it meet debt repayments next month.