Reading some of the recent comments by central banks there seem to be three emerging themes over the last few months.
- One, the move to negative rates is not having the intended impact on markets. It is not jump-starting investments and the impact on risky assets is muted.
- Two, there is a need for policy coordination to control both rates and currencies. The spill-over effect of monetary policy across countries is greater than expected and the only solution is for central banks to work together on policy alternatives.
- Three, central banks are tired of doing the having macro lifting and want support on the fiscal side. This has not been forthcoming. Given this fact, central banks see a greater need for coordinate to increase their market power.