From Southbank Private Briefing (Great Britain)-
It was a week for mea culpas from the financial authorities, disappointments from the monetary authorities, and pragmatic approaches to investing by the team here at Money Week Research. A quick summary is in order.
The mea culpas came from the Independent Evaluation Office (IEO) of the IMF. It concluded the IMF’s staff misled the IMF’s board on a range of issues, from the Greek crisis to the euro. The IEO concluded that “Many documents were prepared outside the regular established channels; written documentation on some sensitive matters could not be located.” No word yet on the quality of the IMF’s Brexit forecasts.
The disappointments came from the US Federal Reserve and the Bank of Japan. In a move that surprised no one, the Fed did nothing and left US rates unchanged at the latest meeting of the Federal Open Market Committee. The Fed meets once more before the US elections, on 20 and 21 September. It then meets one week after the US presidential election on Tuesday 8 November.
The other big – and far more consequential disappointment – came from the Bank of Japan (BoJ). The bank was widely tipped to expand monetary stimulus, take rates even further negative, and generally go boldly where no other central bank has gone before. But it did none of those things, promisingly only a token increase in purchases of exchange-traded funds…