All eyes are now back on monetary policy with the Senate’s confirmation of Janet Yellen as the next Federal Reserve Chair and publication of the minutes of the December FOMC meeting.
At its January meeting, the ECB kept interest rates unchanged, leaving the refi rate at the historical low of 0.25% and the deposit facility rate at zero.
The pace of the recovery risks remaining weak and needs to be strengthened. As the consolidation of public finances constrained fiscal policy, the support has to come from the monetary policy.
