LONDON (Reuters) – The Bank of England looks set to launch a third round of bond purchases in July after unexpected news that such a decision was already the closest of calls this month, a Reuters poll showed on Wednesday.
A sharp fall in inflation reported for last month would give the Monetary Policy Committee, already narrowly split with four in favour and five against, some room to raise the programme to 375 billion pounds from the 325 billion spent thus far.
The trillion euro sugar rush that made Q1 the best start to the year for global stocks in more than a decade has already worn off, but what is most striking is not how quickly it ended. It’s how little the economic outlook has changed.
Cheap central bank money mainly seems to have boosted stocks and the optimism of stock market forecasters, who generally are the most bullish of the lot with or without wads of cheap money.
There was a time when 500 billion euros in cash was truly spectacular.
But investors and speculators hoping for an even more eye-popping cash injection at the European Central Bank’s second and most likely last three-year money operation on Wednesday are likely to be disappointed, based on past Reuters polls of expectations.
Ever since the ECB started offering cheap, long-term loans to keep cash flowing through banks during the financial crisis, a clear pattern has emerged in the forecasts of money market traders attempting to gauge their size.
WASHINGTON/LONDON (Reuters) – Manufacturing activity contracted in the euro zone and much of Asia in November, pointing to a global slowdown even as growth in the United States appears to be shifting into higher gear.
Thursday’s weak manufacturing surveys from the two regions underscored the ripple effects from Europe’s debt crisis, which has caused turmoil in financial markets.
LONDON/SINGAPORE (Reuters) – Manufacturing activity is contracting across Europe and most of Asia, data showed on Thursday, and a Chinese official declared that the world economy faces a worse situation than in 2008 when Lehman Brothers collapsed.
Factory activity shrank even further in the euro zone, reinforcing the view that the debt-strapped region is in recession, while British manufacturing contracted at the fastest pace in two years, raising the risk the UK economy may suffer the same fate.
LONDON/SINGAPORE, Dec 1 (Reuters) – Manufacturing
activity is contracting across Europe and most of Asia, data
showed on Thursday, and a Chinese official declared that the
world economy faces a worse situation than in 2008 when Lehman
Factory activity shrank even further in the euro zone,
reinforcing the view that the debt-strapped region is in
recession, while British manufacturing contracted at the fastest
pace in two years, raising the risk the UK economy may suffer
the same fate.
Who says central banking is boring? The European Central Bank, now grappling with safeguarding the survival of the euro zone, has made it to iTunes, with its monetary policy app “€conomia”. It challenges iPhone and iPad users with — you guessed it — keeping inflation at just under 2 percent. The new app is the on-the-go version of “The Monetary Policy Game” that has been available on its website for some time.
What is most striking is not the funky music soundtrack you would expect to hear playing quietly in the background while the Governing Council meets to set policy in Frankfurt. What really sticks out is the lack of monetary policy tools at the user’s disposal.
By Ross Finley
(Reuters) – The outlook for developed economies remained dangerous in November despite an emerging split between Europe, ravaged by an intensifying sovereign debt crisis, and a slightly better performance in the United States.
Reuters polls of more than 250 economists, taken after G20 leaders left a critical summit in Cannes with no concrete plans to solve the crisis, provide some of the strongest evidence yet that the euro zone is already in recession.
LONDON (Reuters) – The Bank of England will be forced to snap up an additional 50 billion pounds of government bonds in the stimulus programme it expanded on Thursday to 275 billion pounds, a Reuters poll of economists showed.
Grappling with an economy that has barely grown in nine months and a real economic and financial threat from the sovereign debt crisis engulfing Britain’s main trading partner, the euro zone, the Bank has sprung back into action.
LONDON (Reuters) – The developed world’s economies have become ensnared in a growth slowdown that threatens to turn into recession, at a time when room for manoeuvre with bold policy responses has narrowed significantly, Reuters polls showed.
Surveys of more than 250 economists in North America, across Europe and Japan portend steadily increasing chances that central bankers will need to fire any weapons they may have left to stave off disaster.