Latin America Economics Update BCB highlights limited space for policy response The Brazilian central bank’s (BCB’s) statement accompanying last night’s decision to cut the Selic rate by 50bp was surprisingly cautious and suggested that further easing isn’t on the cards. With the... 19th March 2020 · 3 mins read
Europe Economics Update Additional €750bn of QE will not be ECB’s last move The ECB announced late yesterday evening a new €750bn programme of bond purchases which is intended to contain borrowing costs for southern economies. This gives it a lot more firepower which should... 19th March 2020 · 3 mins read
Asia Economics Update Philippines: more easing to come from the BSP The central bank in the Philippines is likely to ease further in the months ahead after opting to cut its main policy rate by 50bps today. The BSP has not yet introduced loan programmes or targeted... 19th March 2020 · 3 mins read
India Chart Pack Virus and Yes Bank debacle dash hopes of recovery It has been a dreadful few weeks for India’s economy. This started with the release of GDP data showing that growth in Q4 slowed to its weakest pace since 2013. And hopes of a near-term recovery have... 19th March 2020 · 10 mins read
Australia & New Zealand Economics Update Australia - RBA may have to expand asset purchases further The RBA today announced a comprehensive set of measures to combat the disruptions to economic activity and financial markets caused by the coronavirus outbreak. If credit markets remain impaired for... 19th March 2020 · 3 mins read
Africa Economics Update S. Africa: Worsening outbreak will prompt SARB to cut Activity data from January suggest that the economy was already contracting before the coronavirus reached South Africa. The outbreak will add to economic headwinds. Policymakers are likely to spring... 18th March 2020 · 2 mins read
DM Markets Chart Pack Market mayhem may get worse before it gets better The turmoil in financial markets caused by the global spread of COVID-19 shows little sign of abating, despite policymakers’ efforts to contain the fallout. Our view remains that until evidence... 17th March 2020 · 7 mins read
Asia Economics Update Pakistan slashes rates, further loosening to come In response to the rapidly worsening outlook for the economy, Pakistan’s central bank (SBP) today slashed its key policy rate by 75bp to 12.5%. With growth likely to slow sharply this year and... 17th March 2020 · 3 mins read
UK Economics Update What more can the Bank of England do? The Bank of England can’t prevent the economy from falling into recession. But like the Fed, we think it will soon throw everything in its policy arsenal at the coronavirus crisis to try to prevent... 17th March 2020 · 4 mins read
Australia & New Zealand Economics Update New Zealand - Recession imminent, more stimulus will be needed While the New Zealand government’s large stimulus package will soften the blow from the coronavirus outbreak, it will not prevent a recession. As such, we still expect the RBNZ to launch quantitative... 17th March 2020 · 2 mins read
Europe Economics Update ECB will be forced into more drastic action Last week’s ECB decision gave it more ammunition to combat the fallout from the coronavirus, but it will not be enough. We now think the Bank will soon make an explicit commitment to keep sovereign... 16th March 2020 · 3 mins read
India Economics Update RBI keeps some ammunition in the locker The RBI announced some measures to boost bank liquidity in a hastily-arranged press conference today but disappointed the bond market by not lowering policy rates. With the coronavirus a growing... 16th March 2020 · 3 mins read
US Economics Update Fed unleashes full crisis playbook The Fed’s decision to slash interest rates to near-zero won’t stop the economy falling into a recession, but the package of liquidity-boosting measures will help prevent credit markets seizing up... 16th March 2020 · 3 mins read
Asia Economics Update Bank of Korea’s next step likely to be QE The Bank of Korea today finally responded to the coronavirus outbreak by cutting the policy rate by 50bp and introducing a number of other measures to ease financing constraints. Further measures... 16th March 2020 · 3 mins read
India Data Response Wholesale Prices (Feb.) The drop in wholesale price inflation in February is an added source of comfort for the RBI following the fall in CPI inflation last month. We think it will follow its global peers by further... 16th March 2020 · 2 mins read
Japan Economics Update Bank of Japan still likely to cut interest rates The measures announced by the Bank of Japan today lack teeth and we still expect policymakers to cut the short-term policy rate over the coming weeks. 16th March 2020 · 3 mins read
