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A Hawk In Doves Clothing

Last week saw a swathe of key central bank meetings from the European Central Bank (ECB), Federal Reserve (Fed) and Bank of Japan (BoJ).  On Thursday, the ECB announced the amount of money it intends on printing each month – quantitative easing - would be reduced to zero by the end of 2018. Thereafter it plans on keeping the balance sheet the same. This was widely expected by financial markets. What wasn’t expected was ECB President Mario Draghi’s comment on interest rates, which he would be held at zero until the summer of 2019 (just before Draghi’s term as president ends...