Download PDF Introduction Economic indicators are statistical data points and metrics that provide insights into the overall health and performance of an economy. These indicators help economists, policymakers, businesses, and investors assess and understand various aspects of economic activity. Economists and analysts use these indicators to monitor economic trends, assess Read more…
Download PDF One of the biggest secular trends in central banking policy since its inception has been increased transparency through more regular and varied forms of communication. The hope is that by being transparent, market participants can price in the policy path more gradually, lowering the chances of wild bursts Read more…
Download PDF Introduction The current macroeconomic landscape is shaped by high inflation, increasing interest rates, and growing risk aversion. The diverging realities nations are facing due to the Russia-Ukraine war, the ensuing energy crisis, the COVID-19 pandemic, the looming global recession, and more, are putting policymakers’ decisions in the limelight. Read more…
Download PDF Introduction We continue our series on the impact of negative interest rate policies (NIRP) on various asset classes by looking at equities valuations this time. The years after the Great Financial Crisis have brought secular macroeconomic, policy and structural shifts, which have resulted in an unmatched collapse in Read more…
Download PDF At the beginning of 2020, BSIC members took a first glance at NIRP in the article “Negative interest rate policy – friend or foe?”. The piece discusses the impact of negative rates in the Euro area and the possible unintended consequences. This year we try to go through Read more…
In a world of excessive liquidity, where open market operations by central banks are ineffective, unconventional and unheard-of monetary policies need sometimes to be applied. In this article we will briefly discuss of the overnight interbank lending market in Europe (and changes in how its respective index is calculated) and Read more…
Introduction In this paper, we will try to explain what are the Euro Interbank Offered Rate (Euribor) and Euro OverNight Index Average (Eonia) rates, what drives the spread between them and specifically why this was the case during the 2008 financial crisis. Euro Interbank Offered Rate (Euribor) rates are the Read more…
Several investors have kept an eye open on oil this week putting all their hopes in the long-awaited OPEC meeting held on Thursday. Opening this week at $80.50 per barrel, the decisions of the OPEC meeting provoked an intraday drop of 6.65 percentage points in Brent crude prices on Thursday, Read more…