FX: Day of the doves – Rabobank

By FXStreet Jane Foley, Research Analyst at Rabobank, suggests that there was a common theme in the words of Fed Chair Yellen and in the policy statements offered by the SNB and Norges Bank.

Key Quotes

“All three cited weaker global growth as a reason for caution. Indeed, the slowing global economy also framed the opening remarks of the UK Chancellor yesterday in his presentation of the budget and, since it was also a focus of BoE Governor Carney’s speech to the G20 in February, it is unsurprising that the minutes show that global growth was a factor in the BoE’s March policy discussions this month.

According to Carney world growth last year was in the region of around 4%, which is less than half of the pace recorded in 2007. Slowing growth in China and in many EM economies combined with continued sluggish rates of expansion in much of the developed world explain why global growth is so slow. This, however, doesn’t address the reasons why extraordinary monetary policy settings in much of the developed world have failed to lift growth and inflation more significantly.

While central bankers often point out the necessity of structural reforms to lift underlying demand, economists are still unsure as …read more

Source:: FX Street