Central Bank Thursday

Today we have central bank meetings for the UK and the Eurozone which will keep the wise money market on its toes.Central Bank ThursdayThe consensus is for no change but with the recent heightened activity of central banks the market is not going to take this for granted.

The Bank Of England are expected to keep interest rates on hold and remain firm on QE for now even after the February minutes saw three members voting for additional QE.

The European Central Bank again are expected to keep rates on hold but in the subsequent press conference the market will be looking for clues from Mario Draghi on policy moving forward.

It is widely touted that he will soften his tone on a rate cut in the months ahead especially if the inflation outlook is revised down slightly.

The politics of economic strategy is becoming ever more pressing in the UK it looks like David Cameron will today confirm in a speech that he is sticking to his plan for the economy.

Business secretary Vince Cable piled the pressure on Cameron yesterday by suggesting an opposite strategy of borrowing more whilst we have cheaper borrowing costs and spending.

Mervyn King has also suggested that the government should fully nationalise RBS and use part of it to lend in an environment where the banks are still not lending adequately.

Later today we have the US Federal reserve’s results of its supervisory stress test of the six largest US banks which will be of note.

Data in the US has been pretty encouraging recently and we have the big one- the non-farm payroll data on Friday which is not expected to disappoint.

In other news, the Bank Of Japan have left policy measures unchanged in outgoing governor Shirakawa’s final meeting.

This was as expected and it is the expectation of incoming Kuroda that will be much more focused upon in April.

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