Central banks step up pace of their Monetary policies retreat!
Last week were about central bank meetings for those interested in the global economy and markets. This week is about Omicron and data, with the US being in the spotlight to-with, have-with, forth-with as below.
The last major central bank
meetings of 2021 (as I assume over the net.) are over and the dividing lines
shall be clear: In a live video conferencing over the internet that simulates a
face-to-face meeting, those policymakers unnerved enough by high inflation to
begin reversing pandemic-era stimulus now and those adamant that ultra-loose
interest policy is still necessary. Swiss National Bank, Bank of Japan, European
Central Bank, Sveriges Riksbank of Sweden, Bank of Australia, Bank of Canada, USA
Federal Reserve, Bank of England, Reserve Bank of New Zealand, and Norgies Bank went these monetary policies to these best
interests, but today it has been put on temporary hold. Major central banks meet
last week Dec. 13-17 2021 to assess risks from the new Omicron variant of the
coronavirus even as they consider reducing emergency measures put in place
nearly two years ago to fight the pandemic's economic toll.
Mohamed El-Erian
- From lower stocks and bond yields to a higher VIX, global markets are pricing
in this morning greater growth concerns on the back of the weekend's
Omicron-related news. Comes at a time of less monetary policy stimulus in
advanced countries and most emerging economies--part of the big global macro
policy transition also featuring greater dispersion. … Magnitude is small yet
the signal is important.
By Peter von Roggenhausen Dec. 20 2021
