-6.7 C
Ljubljana
sobota, 16 januarja, 2021

How Central Banks Are Losing Credibility, In Three Charts

While central banks have yet to lose control over the stock or bond market, an eventuality which even the world’s biggest bond manager warns is just a matter of time, they sure have lost control over what is arguably an even more important market metric: inflation expectations.

Take the euro-area, where despite years of NIRP, QE and corporate bond purchases, inflation expectations have slumped to a record low, adding pressure on the ECB to step up policy support for the region’s economy, even though it was the ECB’s “policy support” ever since the arrival of Mario Draghi, that has led the continent’s inflation expectations to this dismal state.

Five-year forward five-year inflation swaps, a measure of expectations for price increases in coming years, dropped on Friday to 1.1385%, far below the ECB’s target of 2%.

“Draghi is probably not very satisfied with 5y5y ILS hitting a fresh record low,” a snide Christoph Rieger, head of fixed-rate strategy at Commerzbank, said earlier this week.

 

Read MORE

 

Share

Latest news

SDS, SMC and NSi MPs demand the convening of an emergency meeting of the internal affairs committee due to the incompatibility of the function...

by Sara Rančigaj (Nova24TV) Members of Parliament from SDS, SMC and Nova Slovenija have submitted a request to convene an emergency session to investigate the...

Only a few minutes after the announcement that he will not contribute his signature to the constructive vote of no confidence in the government...

by J.S. Branko Simonovič sent an official statement to the media that he could not sign a constructive vote of no confidence. It seems that...

Aleksander Reberšek for Demokracija magazine: It is clear that KUL does not have a suitable candidate for Prime Minister

By: Gašper Blažič We spoke with NSi MP Aleksandar Reberšek, the deputy leader of the NSi parliamentary group. He joined the parliamentary group after the...

At the Šempeter hospital, the situation is getting worse due to new infections

By: Demokracija At the Wednesday’s re-testing of employees and patients at the internal medicine departments of the Šempeter Hospital, which has been threatened by an...

Related news

Twitter CEO talks Trump ban on leaked video

By: V4 Agency "This is going to be much bigger than just one account," Twitter' CEO Jack Dorsey is heard saying in a recording...

PM Orban: Young people to receive full income tax relief

By: V4 Agency The HUngarian government is planning to give young people aged under 25 full income tax relief, Hungarian Prime Minister Viktor Orban told...

Poland will pass a new law that will defend freedom of speech against censorship on social networks

By A.S. After the ban of Trump on Twitter and Facebook, and with rapidly increasing censorship on social networks, Poland has decided to pass a...

Hungary, Poland, Czechia, and Slovakia to present plan for EU crisis exit

by A.P. The V4 heads of parliament discussed the proposal for the EU’s exit from the crisis, the situation in Belarus and the US, and...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share