Asia Economics Update Philippines in no rush to adjust monetary policy The central bank in the Philippines (BSP) left interest rates on hold today. With the economy set to continue growing at a decent pace, the Philippines is unlikely to join in the region’s interest... 14th May 2015 · 1 min read
Japan Economics Update Monetary Indicators Monitor (Apr.) Banks report slowing loan demand but aggregate credit growth nonetheless remains strong as lower yields have encouraged firms to turn to the bond market for funding. 14th May 2015 · 1 min read
India Data Response Wholesale Prices (Apr.) Wholesale price inflation recorded another large drop in April, to its lowest rate since the series began in 2005. Importantly, as the consumer price data released on Tuesday also showed, core... 14th May 2015 · 1 min read
Latin America Economic Outlook Recovery stalls as Brazil suffers renewed downturn The recovery that appeared to be underway in Latin America at the end of last year has faded in recent months, with several of the region’s economies experiencing renewed downturns. The latest... 13th May 2015 · 1 min read
Australia & New Zealand Economics Update New Zealand - New mortgage restrictions raise rate cut chances The Reserve Bank of New Zealand’s (RBNZ) plan to tighten its macro-prudential polices in order to tame house price inflation in Auckland could be another sign that it is preparing the ground for a... 13th May 2015 · 1 min read
Africa Economics Update Ghana: surprise hike probably result of IMF pressure The Bank of Ghana justified its surprise decision to hike its policy interest rate, from 21% to 22%, today by pointing to elevated inflation, although we think that pressure from the IMF also played a... 13th May 2015 · 1 min read
UK Data Response Bank of England Inflation Report (May) May’s Bank of England Inflation Report supports financial markets’ (and our own) view that the Monetary Policy Committee (MPC) is in no rush to raise interest rates. However, we do not think that the... 13th May 2015 · 1 min read
Europe Economics Update Sedlabanki holds, but interest rates to rise soon Although Iceland’s central bank left its main interest rates on hold today, it adopted a much more hawkish tone, signalling that it was likely to start hiking rates as early as next month. 13th May 2015 · 1 min read
Nordic & Swiss Economics Update Iceland: An example for Greece to follow? Iceland’s healthy economic recovery after its financial collapse in 2008 highlights the attractions of currency depreciation, if necessary accompanied by capital controls. Such a path has its economic... 13th May 2015 · 1 min read
Nordic & Swiss Economics Update Sedlabanki holds, but interest rates to rise soon Although Iceland’s central bank left its main interest rates on hold today, it adopted a much more hawkish tone, signalling that it was likely to start hiking rates as early as next month. 13th May 2015 · 1 min read
Japan Economics Update Should the BoJ scrap its monetary base target? We are not convinced that the BoJ’s decision to use the monetary base as its operational target limits the effectiveness of QQE, as some are suggesting. More problematic is that the reduction in real... 12th May 2015 · 1 min read
Nordic & Swiss Data Response Swedish Consumer Prices (Apr. 15) The renewed fall in Sweden’s headline inflation rate in April suggests that the Riksbank’s policy easing so far has not eradicated the threat that deflation becomes entrenched. Accordingly, further... 12th May 2015 · 1 min read
UK Economics Update Austerity and low inflation likely to keep MPC inactive Since the first estimate of Q1 GDP has cast some doubt over the recovery’s health, the MPC is likely to have voted unanimously again at this month’s meeting to keep interest rates on hold. And while... 11th May 2015 · 1 min read
China Economics Update PBOC injects another 25bp of support Today’s cut to benchmark interest rates is not a sign of panic as some will argue but a rational response to weaker-than-expected data. Policymakers have room to act more forcefully if needed but are... 11th May 2015 · 1 min read
UK Economics Weekly Tory majority brings more clarity to fiscal outlook The Tories’ outright majority indicates that the economy is clearly heading for a major re-intensification of the fiscal squeeze next year. This will represent only the first step towards their... 8th May 2015 · 1 min read
US Data Response Employment Report (Apr.) Although non-farm payrolls increased by a relatively healthy 223,000 and the unemployment rate edged down to a seven-year low of 5.4%, April's employment report was otherwise something of a mixed bag... 8th May 2015 · 1 min read
