BIS tells central banks to head for the exits

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In its annual report out today the Bank for International Settlements has warned of the dangers of adding further monetary stimulus in a global economy that was ” past the height of the crisis”


Alas, central banks can not do more without compounding the risks they have already created.

Delivering more ” extraordinary” stimulus was becoming

increasingly perilous

Coming as it does at the end of the week that saw the Fed announce its plans to taper its USD85 bln per month stimulus it can be seen as shot across the bows of the BOJ, ECB, BOE, SNB and many others who have yet to rule out further easing and/or negative depo rates.

The FT carries more here ( possibly gated but available with a free basic subscription)

The full text of the annal report and comments from the AGM can be found here at the BIS website

Author: Mike Paterson

Mike Paterson has more than 30 years of experience trading FX including key market-making roles as a senior spot trader with UBS and Credit Suisse. He was also head of FX at the State Bank of Victoria in London. With sizeable daily trading volumes Mike carved out a career combining professional integrity with a cynical grasp of seizing market opportunity. Since leaving the City, Mike has been working as an independent consultant and trading for himself, along with presenting seminars and writing for a number of publications. Mike now lives in Kent but remains a passionate sponsor of Southend United FC.


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Mike Paterson

One Comment

  1. Hi Mike, one question. Does this mean the carte blanche approval to BOJ to print by G8, IMF and others is revoked? Will BOJ find it difficult to create new stimulus under current environment (this report + Fed taper)?
    Please share your thoughts. Thanks.


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