And from one person at the end of his tenure, to another at the start. Last week Kristalina Georgieva, a Bulgarian economist, was confirmed as the managing director of the International Monetary Fund. Georgieva is the first person from an emerging-market economy to head the IMF and immediately issued a warning. At her confirmation she cautioned ‘"Warning signs
Over the weekend Ignazio Visco, the Bank of Italy’s Governor warned of the downside risks to the central bank’s forecast for economic growth after the nation slipped into a recession in the last quarter of 2018. The recession, Italy’s third in a decade comes as the bank’s latest growth projection of 0.6% GDP growth for 2019 and 1% for 2020 start to look optimistic,
It’s another one of those central bank days today, with the European Central Bank, Bank of England and not forgetting the TCMB (the Turkish Central Bank) announcing policy decisions this afternoon. Although the last decision to raise rates in the UK was unanimous, and subsequent relatively strong data has supported their decision, today the Bank unanimously decided to hold its policy rate at 0.75% (and may remain the case until after Brexit) signaling continued caution over the near-term uncertainties of leaving the EU.
Yesterday Mr Draghi, ECB president, was given a bit of a rough ride by lawmakers in Holland as they pushed and pushed for answers to questions regarding ECB monetary policy and the timing of a wind down in monetary stimulus. According to reports legislators did appear to upset him on a number of points. However he did keep his cool refusing to give anything away adding it was too soon to consider a wind down, despite a ‘firming, broad-based upswing in the economy’.
The European Central Bank’s (ECB) Mario Draghi set a dovish tone yesterday when he addressed European lawmakers. In his opening remarks he confirmed the ECB “will not hesitate to act” if there were downward risks to price stability from low commodity prices and/or transmission issues. In the Q&A session, Draghi also reinforced his view that current policies are effective and are working. There was the usual line that the ECB still has plenty of instruments and the asset purchase programme (APP), or QE as its more commonly known, and is flexible enough to be adjusted to changes in the European economy and markets. He added that the ECB also have other instruments aside from APP, which may be a reference to a lower deposit rate.