24 Jun 2013
Flash: Adjustment, adjustment, adjustment (then growth) - BMO
FXstreet.com (Barcelona) - Stephen Gallo at BMO suspects that the statement from the BIS released today, regarding central banks essentially being “at the end of the line” of how much they can and should do to stimulate growth, helps dispel any doubts that there is much more to the Fed’s timeline for QE tapering than the outlook for US growth.
Indeed, he said, the standout in the synopsis of the BIS’s remarks was probably the notion that central banks must “refocus on their traditional role of encouraging adjustment”. He ask's, "If we don’t have central banks and those who run them acting as the last bastions of stability, regardless of how high or low the levels of uncertainty are, then what really do we have?" In a nutshell, this appears to be where the line of questioning or thinking needs to be focused at the moment and he said these are global issues, and therefore there will be global opportunities to be had as central banks move to foster adjustment.
Indeed, he said, the standout in the synopsis of the BIS’s remarks was probably the notion that central banks must “refocus on their traditional role of encouraging adjustment”. He ask's, "If we don’t have central banks and those who run them acting as the last bastions of stability, regardless of how high or low the levels of uncertainty are, then what really do we have?" In a nutshell, this appears to be where the line of questioning or thinking needs to be focused at the moment and he said these are global issues, and therefore there will be global opportunities to be had as central banks move to foster adjustment.