ECB Sweeteners, QT's Short Life, Likely IMF Picks: Eco Day

(Bloomberg) --

Welcome to Tuesday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help get your day started:

• Banks are waiting to hear how Mario Draghi plans to sweeten the bitter pill of more interest-rate cuts
• The era of quantitative tightening by major central banks is proving to be short lived
• European finance ministers struggling to agree on a candidate for the helm of the International Monetary Fund have just over a week left to meet a deadline they’ve set themselves
• The U.S. and China are moving closer to their first face-to-face negotiations in months, with a meeting between tech chiefs and President Donald Trump marking another step toward easing a ban on sales to Huawei
• Bank of Japan Governor Haruhiko Kuroda said officials are keeping close tabs on mounting doubts over the outlook for global growth and pledged they would “persistently continue with powerful monetary easing” to lift inflation toward 2%
• China’s central bank continued to support banks with cheap money, advancing its effort to support bank lending as the economy slows
• Australia’s back-to-back interest-rate cuts are helping check the currency, Reserve Bank official Christopher Kent said, while quantitative easing is still “pretty unlikely”
• New Zealand’s central bank is taking another look at its strategy for unconventional monetary policy as its official cash rate looks set to plumb fresh record lows

To contact the reporter on this story: Enda Curran in Hong Kong at ecurran8@bloomberg.net

To contact the editors responsible for this story: Malcolm Scott at mscott23@bloomberg.net, Henry Hoenig

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