Emerging Europe Economics Update Romanian rates to rise further than many expect The fairly hawkish post-meeting press conference and upwards revisions to the central bank’s inflation forecasts suggest that the Romanian MPC is increasingly concerned about the prospect of loose... 7th February 2017 · 1 min read
Australia & New Zealand Economics Update Gambling on growth We believe that the Reserve Bank of Australia is being too complacent in expecting GDP growth to be close to 3% over the next couple of years and underlying inflation to rise to 2.0%. So while the RBA... 7th February 2017 · 1 min read
Asia Economics Update Sri Lanka holds rates, but hikes likely soon The Central Bank of Sri Lanka (CBSL) kept rates on hold at its meeting today, but against a backdrop of rapid credit growth, rising inflation and a weakening currency, we think it is only a matter of... 7th February 2017 · 1 min read
Emerging Europe Data Response Russia CPI (Jan.) The further fall in Russian inflation last month, to 5.0% y/y, supports our view that, despite the central bank’s recent hawkish rhetoric, interest rates will be lowered substantially this year. 6th February 2017 · 1 min read
UK Economics Chart Pack Post-Brexit momentum maintained at the start of 2017 Following a strong end to 2016, the economy appears to have carried a decent amount of momentum over into 2017. Despite a slight fall in the Markit/CIPS all-sector PMI in January, it is still at a... 6th February 2017 · 1 min read
Nordic & Swiss Economics Update Is the Swiss National Bank tolerating a stronger franc? The recent appreciation of the Swiss franc suggests that the Swiss National Bank (SNB) may now be willing to tolerate a (slightly) stronger currency. But we see the franc rising even further to reach... 6th February 2017 · 1 min read
Asia Data Response Indonesia GDP (Q4) Indonesia recorded another quarter of disappointing growth in the final quarter of last year. With commodity prices likely to remain depressed and policymakers running out of scope to stimulate the... 6th February 2017 · 1 min read
US Economics Weekly Fed likely to stand pat until June The statement released after last week’s FOMC meeting suggests that the Fed will remain in wait and see mode until it gets more clarity on the size, composition and timing of the fiscal stimulus being... 3rd February 2017 · 1 min read
Emerging Europe Economics Update Russian central bank takes hawkish turn, but cuts on the cards The hawkish statement by the Central Bank of Russia that accompanied today’s decision to leave the policy rate on hold has prompted us to revise up our end-year interest rate forecast (to 8.25%... 3rd February 2017 · 1 min read
Middle East & North Africa Economics Focus Moroccan dirham to rise once central bank loosens its grip The spotlight in the region’s currency markets over the past couple of years has been on the threat of large devaluations but, as we explain in this Focus, the risks in Morocco appear to lie in the... 3rd February 2017 · 1 min read
China Economics Update Repo rate hikes confirm tightening of monetary stance The People’s Bank has raised the interest rate that it charges when providing funds in China’s repo market. This is the clearest evidence so far that monetary policy is being tightened and that... 3rd February 2017 · 1 min read
UK Housing Market Focus Could housing be the weak link in 2017? Our economic forecasts point to a supportive backdrop for the housing market in 2017. Nevertheless, there are three potential risks facing the market. These are an interest rate shock, a shift in the... 3rd February 2017 · 1 min read
RBI Watch Rate cut not a done deal Financial markets and a large majority of analysts are braced for a rate cut at the Reserve Bank of India (RBI) policy meeting next week. But, despite the continued damage and uncertainty caused by... 3rd February 2017 · 1 min read
RBNZ Watch New Zealand - Rate rises a long way off The Reserve Bank of New Zealand will undoubtedly keep rates on hold at 1.75% at its meeting on Thursday 9 th February, but in the accompanying Monetary Policy Statement we suspect it will revise up... 2nd February 2017 · 1 min read
Emerging Europe Economics Update Hawkish statement suggests Czech koruna policy to end soon The upwards revisions to the Czech National Bank’s inflation forecasts and the relatively hawkish post-meeting press conference reinforce our view that the Council’s koruna cap policy will end fairly... 2nd February 2017 · 1 min read
UK Economics Update MPC upbeat on growth but relaxed on inflation The first Bank of England “Super Thursday” of 2017 saw the MPC Minutes and Inflation Report strike a cautiously-optimistic tone. That said, while the economy appears to be coping with Brexit... 2nd February 2017 · 1 min read
