Central Bank Round Up August 8th, 2012

Bank of England

The governor of the Bank of England, Sir Mervyn King has revised the UK economy’s growth forecast from 1.25% predicted three months ago, to a new 0.8% growth target.

Sir Mervyn King said that the economic output and productivity have been unusually low and urged UK banks to improve their loan programs.

Bank of France

The country’s central bank has predicted that France will fall back into recession this quarter. The bank is forecasting a 0.1% contraction, the same level it predicted for the quarter that ended in June.

France posted zero growth in the first quarter of the year, so if at the end of Q3 there is no growth it will have oficially have fallen back into a recession.


Dallas Federal Reserve Bank President Richard Fisher said on a television interview that the U.S. central bank has done all it can to stimulate the economy via monetary easing.

He is asking Congress to provide fiscal and regulatory reforms to stimulate growth even as some of Fisher’s colleagues like Eric Rosengren believe the fed could do more like his suggested open-ended bond buying program.

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza