Rate rises will be slower than predicted
Eurozone inflation eased back to a rate of just 1.1% in February. As in the US, there is some indication of a modest pick-up in wage growth, and this has in the past been closely associated with the rate of inflation in the service sector.
'Could Draghi leave office without ever hiking rates?' Interest rates set to remain unchanged until end of summer 2019
ECB to extend APP to end of 2018
We had a glimpse of the potential market implications of a more eurosceptic Italian government in recent weeks.
2018 has seen another spring dominated by political manoeuvrings, in particular the return of 'The Italian Question'.
Decision on Thursday
Before the Italian President Sergio Mattarella rejected the proposed eurosceptic finance minister Paolo Savona, many market commentators were saying that a yield of 2.5% for 10-year Italian sovereign bonds is a key level for the European Central Bank...
Five 'radical' changes
Growth optimism remains at low levels
Rising inflation a risk
Political concerns remain
Markets have benefitted from a co-ordinated global recovery, led by central banks operating in a synchronised manner.
Data from TrackInsight
Euro a headwind
Kept rates unchanged
Financial markets are heavily distorted by the unprecedented market presence of central banks. Markets have become extremely sensitive to changes in central bank actions.
S&P 500 and Dow Jones both down
Strong recovery in Europe
Central bank policy a risk
Very similar environment to dotcom bubble