Europe Economics Weekly Will QE spur a revival in investment? The risks of a Greek default and possible euro-zone exit rose further last week as its creditors made clear that a bailout disbursement was unlikely in the near term. Despite this, ECB President Mario... 17th April 2015 · 1 min read
UK Data Response Labour market data (Feb./Mar.) The UK’s employment miracle shows no signs of drawing to a close. And with some slack still left in the labour market and pay growth not yet threatening the 2% inflation target, the MPC remains under... 17th April 2015 · 1 min read
Japan Economics Weekly Will the use of JGBs as collateral hamper QQE? Around 20% of all Japanese Government Bonds (JGBs) are currently used as collateral with the Bank of Japan or in private repurchase agreements. However, there are various ways to ensure that a... 17th April 2015 · 1 min read
Latin America Economics Update Chile: policy tightening not imminent Interest rates in Chile were left unchanged at 3.00% last night and despite the central bank adopting a relatively more hawkish tone than a couple of months ago in its statement accompanying the... 17th April 2015 · 1 min read
EM Markets Chart Pack Sun to continue shining on EM equities Emerging market equities have delivered strong returns in the past month, outperforming their developed market counterparts. A confluence of factors is probably responsible. This includes signs of... 17th April 2015 · 1 min read
UK Economic Outlook Don’t underestimate the economy’s hidden slack Economists and policymakers are significantly overestimating the permanent damage inflicted to the economy from the financial crisis and recession. We still think that the economy has the potential to... 16th April 2015 · 1 min read
Japan Economics Focus What could policymakers do next if QQE doesn’t work? The Bank of Japan’s 2% inflation target remains out of sight despite the benefits of a much weaker exchange rate. With the potential to expand QQE in its current form limited, new approaches are... 16th April 2015 · 1 min read
India Economics Update Uncertainty over tax policy could stifle private investment Comments from Finance Minister Arun Jaitley that he plans to raise nearly US$6.5bn by retrospectively taxing foreign companies would, if acted upon, represent a major relapse on economic reforms, and... 16th April 2015 · 1 min read
Canada Economics Update Bank of Canada holds policy rate at 0.75% The Bank of Canada kept its policy rate at 0.75% this morning, showing confidence that, after stalling in the first quarter, the economy will rebound in the second quarter and never look back. We... 15th April 2015 · 1 min read
Europe Economics Update ECB will implement QE in full and may need to do more ECB President Mario Draghi sent a clear signal today that the recent improvement in the euro-zone’s economic outlook would not result in an early termination of the quantitative easing programme that... 15th April 2015 · 1 min read
Emerging Europe Economics Update Polish MPC shrugs off concerns about deflation and strong zloty Having left the policy interest rate unchanged at 1.5% earlier today, the Polish National Bank’s governor, Marek Belka , dismissed suggestions that the strengthening zloty and March’s weaker-than... 15th April 2015 · 1 min read
Asia Economics Update Sri Lanka cuts rates to new lows, door opened for more Against a backdrop of falling inflation, the central bank of Sri Lanka (CBSL) today cut its deposit and lending policy rates by 50 basis points each, to 6.0% and 7.5%, respectively. 15th April 2015 · 1 min read
Nordic & Swiss Data Response Swedish Consumer Prices (Mar. 15) Sweden’s headline inflation rate picked up further in March. But with inflation likely to remain well below target and the underlying rate unchanged, we continue to think that the Riksbank will cut... 14th April 2015 · 1 min read
Emerging Markets Economics Update Window for policy loosening starting to close The wave of EM policy loosening that was triggered by the drop in oil prices at the end of last year is now reaching an end. However, it won't be until 2016 that most central banks move into... 14th April 2015 · 1 min read
Asia Economics Update Bank Indonesia to cut rates again before end-2015 Bank Indonesia (BI) left its main policy rate on hold today at 7.5% despite the continued weakness of the economy. Although much will depend on what happens to the rupiah, we expect to see interest... 14th April 2015 · 1 min read
Asia Economics Update Singapore is finished with policy loosening The Monetary Authority of Singapore (MAS) today decided to make no changes to its policy stance, despite the current bout of deflation and downbeat GDP growth in the first quarter. Concerns about the... 14th April 2015 · 1 min read
