ECB Watch Deposit rate to peak at 4%, no rate cuts until H2 2024 We expect the ECB to raise interest rates by 50bp next week and accompany that with new, hawkish guidance. Policymakers will probably be unable to agree numerical guidance, but we suspect that they... 9th March 2023 · 10 mins read
Latin America Data Response Mexico Consumer Prices (Feb.) Mexico’s headline inflation rated edged down to 7.6% y/y in February but the further pick-up in services inflation will continue to worry policymakers at Banxico. We think that the tightening cycle... 9th March 2023 · 2 mins read
Middle East & North Africa Rapid Response Egypt Consumer Prices (Feb. 2023) Egypt’s headline inflation rate jumped to 31.9% y/y in February, leaving it just shy of an all-time high and reinforcing our view that the Central Bank of Egypt (CBE) will need to resume its... 9th March 2023 · 3 mins read
China Data Response Consumer & Producer Prices (Feb.) Factory gate prices stopped falling last month, as China’s reopening helped to put a floor under global commodity prices. Meanwhile, consumer price inflation dropped back sharply due to a fall in food... 9th March 2023 · 3 mins read
Europe Chart Pack Q4 collapse in domestic demand a bad omen Recent evidence about the health of the euro-zone economy has been mixed. National figures released so far suggest industrial production rebounded in January but retail sales remained very weak. And... 8th March 2023 · 10 mins read
Latin America Economics Update Mexico: strong wage growth to curb fall in inflation Headline inflation in Mexico will continue to fall back over next couple of years, but strong wage growth means that it won’t return to Banxico’s 2-4% tolerance band until late-2024. Against that... 8th March 2023 · 6 mins read
US Economics Update Powell testimony confirms higher peak in rates Fed Chair Jerome Powell confirmed today that interest rates are set to rise higher than we previously anticipated. But with most evidence still pointing to economic weakness and markedly lower... 7th March 2023 · 3 mins read
China Economics Focus China’s economic roadmap for 2023 The economic plans that have been detailed at the National People’s Congress are more cautious and restrained than had seemed likely given the pro-growth messaging ahead of the event. That suggests... 6th March 2023 · 16 mins read
Nordic & Swiss Data Response Switzerland CPI (Feb.) The CPI data for February suggest there is a long way to go before inflation returns to target especially as underlying prices pressures show no signs of abating, with the core inflation rate reaching... 6th March 2023 · 2 mins read
Australia & New Zealand Economics Update Services inflation will remain stubbornly high With labour productivity falling the most on record over the past year, unit labour cost growth has surged even as hourly earnings growth has remained sluggish. While we expect productivity growth to... 6th March 2023 · 3 mins read
UK Economics Weekly Improved outlook for inflation, activity and even Brexit It may seem odd that we are revising down our CPI inflation forecast when investors’ concerns about the stickiness of inflation are growing. But the revisions are triggered by the further fall in the... 3rd March 2023 · 8 mins read
Global Markets Update Two points on “higher for longer” and asset markets With much of the global economy holding up surprisingly well and inflation not coming down as quickly as expected, investors are weighing up the risk that policy rates remain elevated for much longer... 3rd March 2023 · 5 mins read
Nordic & Swiss Economics Weekly Sweden struggling, Switzerland holding up Data released this week showed that Sweden’s economy contracted by more than previously thought in Q4, and we expect further declines to come. But Switzerland’s economy is holding up better and there... 3rd March 2023 · 7 mins read
Emerging Europe Data Response Turkey Consumer Prices (Feb.) Inflation in Turkey fell to 55.2% y/y in February, but underlying price pressures remain strong and the disinflation process appears to be happening more slowly than had been expected. Inflation will... 3rd March 2023 · 3 mins read
Japan Economics Weekly Economy headed for recession We're expecting industrial production to rebound strongly in February. Even so, industrial output will still slump this quarter, pointing to a larger q/q fall in Q1 GDP than we’re forecasting. However... 3rd March 2023 · 5 mins read
