April, 21 2016 by lsr team

Charles Dumas, director of Lombard Street Research, discusses the EU referendum’s impact on the UK unemployment numbers, and Bank of Japan Governor Haruhiko Kuroda’s latest comments on monetary easing. He says the Bank of Japan has no control over the currency market and that people have an exaggerated understanding of the power of central banks. Click here to download and listen to the Bloomberg podcast or below to read his la...

March, 04 2016 by lsr team

March is a busy month for central bank watchers. The fun starts next Thursday in Frankfurt with the ECB policy decision, before moving to the BoJ (15th), the Fed (16th) and the BoE (17th). With investors concerned about the state of the global economy and wondering whether monetary policy is reaching its limits, markets are looking for a central bank response. But outside the euro area, we don’t expect a great deal of action. Market rate expectations for the Fed and the BoE have already dropped sharply (down 75-90bps since December) and some comforting words should be...

October, 14 2015 by lsr team

We have written before on this subject but continue to receive questions on it and some of these questions deserve careful consideration. To recap, initially, the question was simply ‘can’t central banks just write off some of the massive of government debt that they have amassed through the quantitative easing programs.’ To this we answered ‘yes they can but to what end?’ In this note we answer a selection of the most intriguing questions asked by clients. Is the central bank’s funding liability really a liability? Wouldn’t this...