It is important to remember that the Fed did not ease monetary policy yesterday.
ECB's target range mean that it is not ready to ease monetary policy just yet.
Additionally, slowing growth may support expectations that the Chinese government will ease monetary policy.
Previously, the central bank had been unable to ease monetary policy due to inflation.
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"It does, however, potentially give the Monetary Policy Committee more flexibility to ease monetary policy further, " he added.
ECB, unlike the Fed, may not ease monetary policy as fast as it should over the coming year.
Many investors expect the European Central Bank to ease monetary policy this week.
Goldman Sachs forecasts that inflation will fall to 1.5% in 2009, which gives the central bank scope to ease monetary policy.
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Developing countries do have scope to ease monetary policy and boost growth.
There are certainly compelling reasons for the ECB to ease monetary policy.
On July 5th, after The Economist had gone to press, both the ECB and the Bank of England were expected to ease monetary policy.
Some fear that even if the Fed did ease monetary policy to restore order, lingering inflation fears would push up long-term rates, compounding America's mortgage mess.
Central bankers, particularly at the Fed but also in Europe, "seem to be acting as if they have unlimited flexibility to ease monetary policy, " he says.
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Goldman Sachs said it expects the FOMC to ease monetary policy in response to weaker economic reports and increased downside risks from the intensifying crisis in Europe.
Mr Kuroda, who has long been a critic of the central bank's policies, is a supporter of Mr Abe's plan to ease monetary policy and increase government spending.
Many thought the Australian central bank would ease monetary policy.
Japan's Nikkei Stock Average climbed 2% to the highest level seen since July 2008 as markets reacted to the Bank of Japan's new aggressive efforts to ease monetary policy.
If the Bank of Japan, for instance, were to persist with its refusal to ease monetary policy even as America's economy stalled, the world economy would take a nasty tumble.
While much of the developed world was either cutting rates or buying bonds to further ease monetary policy, vast swaths of the developing world were increasing rates to rein in inflation.
Mr Kuroda's comments echoed the election promises made by Mr Abe that the central bank needs to do more to convince markets that it will take steps to ease monetary policy.
But even if the Fed does not make a stimulus move on Thursday, the majority of the market place believes the U.S. central bank will act to ease monetary policy in the coming weeks.
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The yen's slump across a range of currencies has occurred as a new government has pledged to revive the deflation-dogged Japanese economy and has pressured the Bank of Japan to aggressively ease monetary policy.
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Since September, the government has acted aggressively to attract foreign investment and improve its weak financial position, raising hopes that such steps would allow the RBI space to ease monetary policy and revive economic growth.
Precisely those purchases of assets to further ease monetary policy are cooking a bigger financial crash than in 2008, Peter Schiff of Euro Pacific Capital argues, and that collapse will start with the housing and bond markets.
If it does nothing, the Fed runs the risk that, when Wall Street does eventually fall, inflation will be rising and the dollar falling, making it harder to ease monetary policy to offset the effects of a crash.
Fueling the growing confidence in stocks is a sense that the U.S. economy is healthy enough that recession isn't a concern but not so strong that the Federal Reserve will pull back on its aggressive measures to ease monetary policy.
According to the World Bank, good monsoon rains this year and a stable local currency could further reduce inflation from current levels, allowing the central bank to further ease monetary policy after cutting its key lending rate twice already this year.
More broadly, fueling the growing confidence in stocks is a sense that the U.S. economy is healthy enough that recession isn't a concern, but at the same time, not so strong that the Federal Reserve will pull back on its aggressive measures to ease monetary policy.
The data would boost hopes that India's economic slowdown is ending, although it would still take time before a meaningful recovery sets in, and this would maintain pressure on the government to speed up economic reforms and on the central bank to ease monetary policy to stimulate growth.
The drop in Shanghai came amid expectation that Beijing won't ease its monetary policy too much.
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