Latin America Data Response Brazil & Chile CPI (May) The fall in Brazilian inflation, to 4.7% y/y in May, is set to be followed by further declines, taking it below the central bank’s target. So long as the economy recovers from its recent weak patch... 7th June 2019 · 1 min read
Emerging Europe Data Response Russia CPI (May) The further fall in Russian inflation to 5.1% y/y last month probably seals the deal on an interest rate cut at next week’s meeting. We expect a 25bp cut to 7.50%. 6th June 2019 · 1 min read
Emerging Markets Economics Update What does the fall in oil prices mean for EMs? The $10pb fall in global oil prices over the past couple of weeks will improve the terms of trade for major EM oil importers, such as India, and will help to provide some relief for countries with... 5th June 2019 · 1 min read
Asia Data Response Philippines CPI (May) The unexpected uptick in inflation in May mainly reflected temporary factors and is unlikely to preclude further rate cuts from the central bank. We are sticking with our forecast for two more cuts in... 5th June 2019 · 1 min read
Europe Data Response Euro-zone Flash HICP (May) & Unemployment (Apr.) The drop in the euro-zone’s headline inflation rate in May was largely due to lower energy inflation and a reversal of Easter timing effects. But with wage growth likely to have peaked, we expect core... 4th June 2019 · 1 min read
Nordic & Swiss Data Response Swiss CPI & Manufacturing PMIs (May) The morning’s release of inflation and PMI data from Switzerland for May showed that price pressures remain almost entirely absent and that the industrial sector remains in the shadow of the euro-zone... 3rd June 2019 · 1 min read
Emerging Europe Data Response Turkey Consumer Prices (May) The weaker-than-expected Turkish inflation figures for May, combined with the recent rally in the lira, means that the MPC will continue to shift away from its hawkish stance at this month’s policy... 3rd June 2019 · 1 min read
Australia & New Zealand Chart Pack Unemployment rates to rise The deterioration in the New Zealand and Australian economies is starting to flow through to a softening in the labour market. Admittedly, employment growth in Australia has risen to the highest rate... 3rd June 2019 · 1 min read
Asia Economics Weekly Philippines inflation, Asia’s “currency manipulators” Signs that Philippines inflation continued to tumble in May suggest that the easing cycle there has further to run. Meanwhile, easing is also likely in Malaysia, Korea and Singapore in the second half... 31st May 2019 · 1 min read
Japan Data Response Activity, Labour Market (Apr.) & Tokyo CPI (May) The rebound in industrial output in April coupled with upbeat forecasts for May suggests that the manufacturing sector will return to growth in Q2. However, we still expect the labour market to... 31st May 2019 · 1 min read
RBI Watch Three cuts in a row The MPC is likely to use the current low rate of headline inflation as justification for a third consecutive rate cut at the conclusion of its policy meeting on Thursday 6th June. But with a growing... 30th May 2019 · 1 min read
Emerging Europe Chart Pack Monetary tightening comes into focus Emerging Europe has been one of the few parts of the emerging world where attention has centred on monetary tightening (rather than loosening) in the past month. A rise in core inflation to multi-year... 29th May 2019 · 1 min read
Asia Chart Pack Who is winning the trade war? With the trade war between the US and China continuing to escalate, a clear winner is starting to emerge: Vietnam. Since around the middle of last year, Vietnam’s exports to the US have shot up by... 29th May 2019 · 1 min read
Latin America Economics Update Argentine inflation close to a peak Argentine inflation is close to a peak and should ease in the coming quarters. But bringing inflation down to single digits will require a reduction in wage indexation, improvements in the central... 28th May 2019 · 1 min read
RBA Watch Rates may fall to 0.75% The Reserve Bank of Australia (RBA) has telegraphed that it will cut interest rates to 1.25% in June and we think it will follow up with another 25bp cut in August. But we suspect that further easing... 28th May 2019 · 1 min read
UK Economics Weekly Prime Minister May falls, CPI inflation rises The announcement by the Prime Minister that she will resign appears to have generated even more political uncertainty for the Bank of England to deal with. The Bank will be thankful, then, that... 24th May 2019 · 1 min read
