WHAT HAVE WE REALLY ACCOMPLISHED?
As has become the norm, the Central Bank meeting cycle has brought some respite from the worlds ills, with their expected dovish bent calming the savage volatility beast. Contributing to this campaign has been the ECB, Fed and BOJ, all of which provided their version of calming words or actions. The ECB started the procession by effectively preannouncing both further QE and/or additional cuts to their already negative depo rate. A week later the Fed did not offer any thing as strongly worded, although they tweaked their language in a way that we interpreted as downgrading the economy, while potentially moving the risk to the economy downward. The Bank of Japan was the only monetary authority to make changes, however, introducing negative interest rates for the first time, while committing to remain vigilant with future actions if needed.