Global Uncoordinated Bond Market Panic …
Jul 05, 2012
… ECB Cuts Rates to Record Low, Deposit Rate to Zero; Bond Market Response Was ‘Not Enough’; Words ‘Heightened Uncertainty’ Explained
Global Uncoordinated Panic
In a 45-Minute Salvo today, the ECB cuts rates to a record low 0.75 percent and reduced the deposit rate to zero. Meanwhile, the People’s Bank of China cut their benchmark borrowing costs (the second time in a month), and the Bank of England raised the size of its asset-purchase program.
Also note the central banks of Australia, the Czech Republic, Kazakhstan, Vietnam and Israel cut rates in June, while the Swiss National Bank is buying euros to defend its franc ceiling.
ECB president Mario Draghi said these events were not global coordinated easing.