J.L Campuzano (Spanish Banking Association) | What is clear from ECB President Mario Draghi’s speech last Thursday is that investors consider we are closer than farther away from the start of monetary normalisation against a backdrop of economic optimism.
Natixis AM | The Fed decided On Wednesday to increase its main rate by 25 bp. The US central bank had mentioned so many times this hike that it has to do it. But what will happen now?
Fernando Barciela | The Federal Reserve’s minutes which were released last Wednesday show that a rate hike is firmly on the cards for this December. But almost everybody seems to think that – if it happens – the rate increase probably will be small, a quarter of a percentage point at most. And, also very importantly, the pace of rate increases after that hike will be gradual. Before any further decision about future hikes the Fed will want to study the consequences.
From July 2014 to date, the dollar has risen by 17% and this increase is one of the reasons why the U.S. economy registered paltry growth of only 2% y-o-y in the third quarter. But the market thinks that the strong dollar is here to stay and it is becoming a factor that US policymakers must consider.