One more surprise to end a wild month
In Davos, Bank of Japan Governor Kuroda played down worries in the economy.
"At this stage, a virtuous cycle of income to spending by the corporate sector as well as the household sector is maintained -- fairly robust," Kuroda said last weekend. "We are not so much concerned about the real economy."
It was a smokescreen.
Kuroda famously likes to surprise and his legacy as the most daring, unpredictable central banker is now cemented.
The bigger picture
The ECB hinted at more easing in March, the Fed was more dovish than expected and the BOJ went negative this month. At the start of January, the big question was whether central bankers 'got it'. Aside from the hapless Bank of Canada and the puzzling lack of action from the PBOC, they have proved that they are tuned in to what's happening in markets and the global economy.
That's a better sign for risk assets in February but officials are still playing catch-up. What may hurt them in the long run is that virtually none of them sniffed out problems until they were on the doorstep.
