Draghi Does What Draghi Does
Yesterday saw just another standard day for the economic markets with the news out being pretty much what we’ve all got used to over the past few months. Mark Carney and the Bank of England kept the interest rates on hold, and as the minutes are not being released for a couple of weeks, this announcement came and passed without anyone paying it a great deal of attention.
The main story was Mario Draghi and more procrastination. No one was expecting any movement on the interest rates and, of course, this didn’t happen but there was some mild anticipation of some chat about Quantitative Easing. Mario didn’t disappoint. Unsurprisingly, he stopped short of implementing it. Indeed, he stopped short of saying when it would be implemented but the matter was addressed in typical Draghi manner. Basically, he is still waiting to see what effect the current stimulus has had and then he’ll revisit it next year. So, still no clear plan.
We also saw the downgrading of the outlook for growth and inflation for 2015 and 2016. This was downgraded further from what was predicted just 3 months ago.
Today, we have non farm payrolls data coming out and people are expecting further healthy news from the States. Other news is European GDP and UK consumer inflation expectations.
Have a good weekend!