Oct. 2, 2012, 12:57 p.m. EDT
Which central bank is the next to surprise?
Australia delivers unexpected rate cut; Europe, Japan on tap
Australia surprises with rate cut
The Reserve Bank of Australia caught investors by surprise on Tuesday when it decided to lower its cash rate by 25 basis points to 3.25%.
ECB to meet as Spain mulls bailout request
ECB President Mario Draghi in September provided a detailed outline of a plan that would see the central bank buy potentially unlimited amounts of government bonds, provided that troubled countries first ask the euro-zone rescue funds for help and agree to abide by strict policy conditions.
Bank of England to gauge QE impact
The Bank of England fired its latest quantitative-easing salvo in July, boosting the size of its asset-purchase program by another 50 billion pounds to a total of 375 billion pounds. It will take until next month for the bank to complete those purchases, giving policy makers time to gauge the impact of the latest round of quantitative easing and the economic outlook. That means no change in policy is likely on Thursday when the monetary policy committee meets.
Bank of Japan likely on hold after September move
In September, the Bank of Japan decided to expand its asset purchases by 10 trillion yen to about 80 trillion yen, saying that overseas economies have moved somewhat deeper into a deceleration phase.
Fed’s Bernanke defends QE3
Last month, the Fed announced it will begin open-ended buying of $40 billion of mortgage bonds per month until there is a sustained improvement in the labor market. And here’s an interesting piece from PIMCO’s Tony Crescenzi on the U.S. central bank : “The Fed is the only game in town – awaiting anxiously, and building a bridge to, a time when Washington will devise solutions to the many economic challenges facing the United States.”
http://www.marketwatch.com/story/central-banks-to-watch-this-week-2012-10-02?dist=beforebell
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