Divyang's focus is in following broad macro trends globally with a view to building a tradable analytical framework. He was editor of the flagship products at IDEAglobal as well as head of FX research and then moved to Chief Strategist at Commonwealth Bank of Australia before joining IFR.
The weakest growth in China during Q2 for at least 27 years has led to the usual reaction of 1) increased concerns over global growth; and 2) calls for more fiscal and monetary policy stimulus.
The ECB is expected to reduce the deposit rate but what will happen to the refi rate that is currently at zero?
What was clear from the ECB’s reaction function back in 2014/15 was that a decline in inflation expectations was a driving force behind QE/APP. The latest decline in inflation expectations is likely to be just as important a rationale in restarting QE with the added likelihood of more flexible issue/issuer limits.