Recent statements show that there is a struggle for direction within the ECB – there is a front position between the ECB members from the northern countries of the euro zone and the Draghi group (southern countries of the euro zone). Draghi, who met Merkel yesterday, can only unpack the bazooka for the next ECB meeting if the opposition within the ECB is not too big – and Merkel gives the green light. There is also disagreement in the Fed, as recent statements by Bullard and Rosengren show. All this suggests that both the ECB and the Fed will be taking a compromise line (disappointing the high expectations of the markets?): both are likely to cut interest rates at their September meetings, but not take a big step (QE at the ECB and 0.5% cut at the Fed).
Markus Krall is known to be a supporter of the Austrian school, which sharply criticises the monopoly of the central banks and demands a free monetary system. Krall currently sees a fatal development. The central […]
For several weeks in the course of the trade dispute between the USA and China, Donald Trump only gave us one stereotypical statement: The US economy is doing great. Growth, jobs, wages, inflation, everything is […]
The Turkish central bank has just announced its latest interest rate decision. The key interest rate is being lowered from 16.5% to 14%. Expectations were 15.5%. There have already been two sharp rate cuts in […]