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  • Dec 20, 2014
  • Updated: 9:26pm

Central Banks

Surprise! New arrow in central banks' quiver as rate slashing and money printing reach best-by date

Wrong-footing markets has become a defining policy tool for the ECB since Mario Draghi became its president. Photo: Reuters

After slashing interest rates to almost nothing and printing trillions of dollars, central banks are becoming increasingly reliant on another policy weapon: sucker punching markets.

Monday, 11 November, 2013, 1:47pm

Time for more easy money

The Federal Reserve may have more scope to increase supply of US dollars as inflation shows little sign of picking up. Photo: Bloomberg

Slowing inflation is giving central bankers scope to provide the world economy with more liquidity and lower interest rates for longer, all in the name of price stability.

30 Apr 2013 - 4:28am

Adding shine to stimulus

Gold has had a 12-year bull run but price falls this week could give central bankers more reason to keep pump-priming. Photo: AP

The slump in gold may hand activist central bankers more reasons to pursue the easy monetary policy that helped drive up the metal's price in the first place.

18 Apr 2013 - 5:33am

Quantitative easing endgame is nothing to lose sleep over

Since the bubble economy burst at the beginning of the 1990s, Japan's gross government debt has expanded from 66 per cent of GDP to reach 245 per cent last year, as banks rely on increasing purchases of government bonds to make up for falling demand for loans from Japan's risk-averse businesses and individual borrowers. Photo: Reuters

With the world's major central banks printing money at unprecedented rates to fund governments' ballooning deficits, some investors are worried about a generalised collapse in the bond markets.

18 Apr 2013 - 5:33am 1 comment

Banking on the group

China is seen by some observers as an interesting market for banks this year as more Chinese firms look offshore. Photo: Reuters

The proportion of loans to total debt arranged in the Asia-Pacific region outside Japan shrank to 66 per cent last year, the least since 2009, according to data compiled by Bloomberg.

1 Feb 2013 - 5:22am

Investing for abnormal times

Investors must adjust their tactics in these abnormal times. Photo: EPA

The US stock market is close to all-time highs. Interest rate cuts and the demand for yield have generated strong returns in bonds.

Greek bonds recently doubled in "value" from around 13 per cent of face value to the high 20s, although they have fallen back a little.

12 Nov 2012 - 3:19am

Action by leading central banks raises hopes for Asian economic growth

Asian equities have climbed in recent weeks.Photo: Reuters

The world's three major central banks have given a "sugar boost" to equity markets in the past couple of weeks.

23 Sep 2012 - 10:34am

Banks boost economies

With the economic climate in Europe and China deteriorating, central banks have intervened to pump more money into these economies.

The banks announced stimulus measures in rapid succession, acting on concerns over deteriorating global growth.

17 Jul 2012 - 12:00am

Danger stock market bull run may soon run out of steam

World stock markets have enjoyed a handsome bull run over the eight weeks since the beginning of the year.

This week America's Dow Jones Industrial Average topped the 13,000 mark, a level it hasn't seen since May 2008, months before the implosion of Lehman Brothers signalled the US credit crunch had shifted to a new and altogether more painful dimension.

23 Feb 2012 - 12:00am

Further easing on horizon amid jump in bank loans

Rapid loan growth on the mainland last month might be an indication that Beijing could carry out further monetary easing as it braces for possible shocks from the United States and Europe.

10 Jan 2012 - 12:00am

Don't fear for your euros, worry about your business

A concerned reader writes in to ask how a break-up of the euro would affect businesses in Asia. 'What would happen to the euro deposits in my HSBC account? How would I pay my suppliers in Europe?'

30 Nov 2011 - 12:00am

Mainland monetary tools an inflated fairy tale of fortunes

'A spokesman for the palace said King Canute would command the waters to cease rising in order stop the flooding of low-lying areas, as last month's official data showed the tide was still rising.'

Viking Times, 1008 AD

11 Jan 2008 - 12:00am

ECB raises interest rates to rein in inflation

Bank lifts borrowing costs by 25 basis points to 4pc amid robust growth in eurozone

The European Central Bank raised its key interest rate by 25 basis points to 4 per cent as expected yesterday to combat inflationary dangers in a strongly expanding economy.

7 Jun 2007 - 12:00am

Asia's markets developing another fever

It now really is getting past time to hang out a warning flag on the performance of most Asian stock markets.

With share prices outside Japan up a weighted average of more than 100 per cent in US dollar terms over the past 10 months and 60 per cent over the past five months alone, euphoria and self-congratulation have broken out everywhere.

8 Jul 1999 - 12:00am

Euro rises on hopes for peace in Kosovo

Optimism for an international peace deal in Kosovo saw the euro stage a sharp rebound yesterday after plumbing new depths against the US dollar on Wednesday.

4 Jun 1999 - 12:00am

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