Asia Economics Weekly Lifeline for Bank Indonesia, more stimulus on the way With the rupiah recovering strongly over the past week, we think Bank Indonesia will lower interest rates at its meeting on Tuesday. Meanwhile, more countries have unveiled fiscal stimulus and support... 9th April 2020 · 5 mins read
Asia Economics Update Korea: QE won’t negate need for more fiscal stimulus The Bank of Korea’ (BoK) left rates on hold at 0.75% today and announced plans to purchase government bonds. There is scope for quantitative easing to have an impact, but there are limits to how... 9th April 2020 · 3 mins read
Latin America Economics Update What more can Chile’s central bank do? With the Central Bank of Chile’s policy rate at its effective lower bound, we think that its next easing measure would be a quantitative easing programme aimed at flattening the long end of the yield... 8th April 2020 · 4 mins read
Capital Daily ECB more important than Eurogroup for E-Z bond yields The overall small market reaction to yesterday’s inconclusive Eurogroup meeting supports our view that ECB policy, rather than the outlook for public finances, will be the main driver of euro-zone... 8th April 2020 · 7 mins read
Europe Economics Update ECB using balance sheet more aggressively than ever The ECB is using its balance sheet aggressively to provide cheap funding to banks and support peripheral government bond markets. But there is no guarantee that banks will maintain their volume of... 8th April 2020 · 4 mins read
Next big announcement could be Poloz’s successor The Bank of Canada could announce next week that it is adding corporate bonds to its asset purchases but, if there are only tweaks to the existing programs, then the focus will be on the Bank’s new... 8th April 2020 · 7 mins read
Global Central Bank Watch Monetary policy pushing new limits What a difference a month makes. At the time of our last Global Central Bank Watch, monetary policymakers in advanced economies had taken a cautious but relatively sanguine attitude to the coronavirus... 8th April 2020 · 11 mins read
Japan Economic Outlook Output to fall more than during global financial crisis Lockdowns will soon be imposed across much of Japan, triggering a decline of more than 10% in economic activity this quarter. The government’s latest fiscal package is intended to help firms stay... 8th April 2020 · 19 mins read
Australia & New Zealand Economics Update Australia - RBA may yet have to launch negative rates The Reserve Bank of Australia (RBA) didn’t announce additional measures at today’s meeting and given the easing in tensions on financial markets we think it won’t adjust policy settings over the... 7th April 2020 · 3 mins read
India Economic Outlook Slowest growth in four decades Strict containment measures in response to the coronavirus outbreak in India will have severe economic repercussions. We think the economy will grow by just 1% in 2020, which would be the weakest pace... 2nd April 2020 · 13 mins read
RBA Watch RBA may yet have to launch negative rates The recent easing in financial markets suggests that the Reserve Bank of Australia’s (RBA) won’t announce major decisions at the upcoming meeting on 7th April. Looking further ahead though, the Bank... 2nd April 2020 · 6 mins read
Latin America Economics Update Chile cuts rates, more easing in store Chile’s central bank suggested that, having cut its policy rate to 0.5% yesterday, rates will remain at this low level for an extended period of time. But given the scale of the economic hit from the... 1st April 2020 · 3 mins read
Japan Data Response Tankan (Q1) While the Q1 Tankan survey held up slightly better than we were expecting, it still showed a marked deterioration in business conditions. And with sentiment set to deteriorate further as lockdowns... 1st April 2020 · 2 mins read
Latin America Economics Update Are Latin American policymakers doing enough? Policymakers in Peru and Chile have been quick to introduce economic policy and containment measures in response to the coronavirus, but peers elsewhere – particularly in Brazil and Mexico – have made... 31st March 2020 · 4 mins read
Nordic & Swiss Economics Update SNB may be forced to live with a stronger franc While the SNB clearly favours using FX interventions to weaken the franc at present, persistent concerns about the size of its balance sheet would make it reticent to step in on an ever-greater scale... 30th March 2020 · 4 mins read
China Economics Update PBOC moves to keep interbank rates low The People’s Bank (PBOC) has taken another step to loosen monetary conditions by lowering the rate at which it lends to banks. But the central bank’s job isn’t done yet and we anticipate continued... 30th March 2020 · 2 mins read
