Comments from policy makers

UBS Investment research daily round-up

Monday 26 January 2009 - Comments from policy makers

Presented by Paul Donovan


+ The Bank of England's Blanchflower was sounding dovish over the weekend (no surprise, as he always sounds dovish). He suggested rates could go to 0% in the UK. This is a bit academic now - markets are priced for additional accommodation, and whether at 0% or 0.5% is not that important.


+ The ECB's Mersch was sounding hawkish over the weekend (no surprise, as he always sounds hawkish). He suggested rates should not go much below 2% and that quantitative easing would be hard to do in the Euro area. What is the ECB for, then, if they can not provide stimulus?


+ The US's Larry Summers was sounding complacent over the weekend (no surprise, as he always sounds complacent). He suggested the fiscal stimulus before Congress was sufficient. Another US bank failed on Friday - the third this year.


+ In Japan the prospect for political leadership in the crisis is being undermined by Prime Minister Aso's very weak approval ratings. His disapproval rating soared 7% to 65%, and his approval rating is only 19%.

Category:

News & Politics

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[ubseconomics2]

@hwy9nightkid Just uploaded daily Briefing for 7 May 2010.

[hwy9nightkid]

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