No great surprises from the mandarins of global finance. First, the BOE announced the widely anticipated 50 BILLION QUID increase in the QE program but Mervyn King and company did not cut the overnight lending rate. Following on the heels of the BOE, the ECB, under the guidance of Mario Draghi, cut the overnight rate by 25 basis points to 0.75% and also lowered the ECB deposit rate to zero from 0.25%. Again, no surprises, although the DEPOSIT RATE CUT WAS NOT WIDELY EXPECTED. Why did Draghi move to make the deposit rate ZERO?
Archive for July 5th, 2012
Notes From Underground: Central Bank Poker–After the AUSSIES CHECKED, the BOE BET; the ECB CALLED
July 5, 2012Notes From Underground: July 5TH PROVIDES THE FIREWORKS
July 5, 2012Yesterday, the United States celebrated the victory of political freedom from the FISCAL TYRANNY of 18th century England. One day soon maybe we will be free from the financial REPRESSION of the FED … so sayeth the U.S. BOND MARKET.
