As I wrote yesterday, “In the West, consumer prices overall are pushed around by oil. In the East, by food.” In neither case is inflation buoyed by “money printing.” Central banks both West and East are doing things, of course, but none of them amount to increasing the effective supply of money. Failure of inflation, more so economy, the predictable cost. In yesterday’s article the topic in the East was China. Today,...
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Summary: Policy is on hold. There is several areas which the BOJ can adjust its forecast or forward guidance. BOJ is more likely to err on the side of caution. The Bank of Japan is unlikely to change policy. Its current policy of targeting 10-year bond yields and expanding the balance sheet by JPY80 trillion is aimed at boosting core inflation to 2%. However, the risk is that BOJ Governor Kuroda surprises the...
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Swiss Franc During the day the EUR/CHF has fallen to a low of 1.0819. We know that the in-official new floor lies at that level. Moreover, the SNB had to polish the Q3 results. With interventions she lifted the EUR/CHF to 1.0893 and the euro continued rising thanks to speculators that jumped on the train.There was no economic data that could have justified the sudden increase. EUR/CHF, September 30. FX Rates True...
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