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5 Aug 2014
Japan: Feeling QE-asy - but no-one else is - Rabobank
FXStreet (Guatemala) - Analysts at Rabobank explained that with it’s late July decision to taper by a further UDS10bn, the US Federal Reserve is now just two further meetings (September 17 and October 29) away from removing QE3, a bond-buying scheme that has been a key feature of global markets since November 2008.
Key Quotes:
“At the same time, the ECB still appears extremely reticent to engage in similar extraordinary monetary stimulus; indeed, recent weakness in USD/EUR is likely to offer it further encouragement in postponing the decision over the potential start date of any “QE-CB”.
“With the BOE also having long finished its round of Gilt purchases, that will leave only the BOJ as provider of extreme, direct monetary stimulus to the global economy. In that light it is worth examining the Japanese QE experience in some detail”.
Key Quotes:
“At the same time, the ECB still appears extremely reticent to engage in similar extraordinary monetary stimulus; indeed, recent weakness in USD/EUR is likely to offer it further encouragement in postponing the decision over the potential start date of any “QE-CB”.
“With the BOE also having long finished its round of Gilt purchases, that will leave only the BOJ as provider of extreme, direct monetary stimulus to the global economy. In that light it is worth examining the Japanese QE experience in some detail”.