Bank of Japan Watch Bank of Japan to leave policy rates unchanged At its last meeting, the Bank of Japan sounded the alarm over a decline in price pressures. However, the economy has continued to grow faster than potential and the recent sharp weakening of the yen... 15th December 2016 · 1 min read
UK Economics Update MPC won’t follow the Fed The unanimous decision by the Monetary Policy Committee (MPC) to leave interest rates on hold and the scale of its asset purchases unchanged, at the same time as the US Fed has resumed tightening... 15th December 2016 · 1 min read
Commodities Update Fed tightening still consistent with strong commodity demand Yesterday’s US rate hike was widely anticipated, which probably explains the relatively muted responses in commodity markets. We expect the Fed to accelerate the pace of tightening in 2017, which... 15th December 2016 · 1 min read
Asia Economics Update Indonesia holds rates, currency worries to remain a constraint Bank Indonesia’s (BI) decision to keep its policy rate on hold at 4.75% today demonstrates the central bank’s focus remains on supporting the rupiah. With interest rates in the US likely to rise... 15th December 2016 · 1 min read
Nordic & Swiss Economics Update Weak inflation to prompt Norges Bank rate cut in 2017 The Norges Bank’s decision to leave interest rates unchanged came despite a deterioration in the outlook for growth and inflation. While policymakers remain concerned about the impact of loose... 15th December 2016 · 1 min read
Nordic & Swiss Economics Update SNB’s ultra-loose policy won’t stop franc rising against euro The Swiss National Bank’s decision to leave interest rates on hold and pledge continued currency intervention was as expected. The Bank may have drawn some comfort from the franc’s recent decline... 15th December 2016 · 1 min read
Asia Economics Update Korea holds rates, but cut in 2017 likely The Bank of Korea (BoK) kept its policy rate unchanged at 1.25% today, but with the growth outlook deteriorating and inflation benign, we expect a rate cut in 2017. 15th December 2016 · 1 min read
US Economics Update Fed hikes rates & looks to accelerate tightening in 2017 As universally expected, the Fed today raised interest rates for the second time in this economic cycle, with that hike coming a full year after the first increase and more than seven years after the... 14th December 2016 · 1 min read
UK Markets Chart Pack Can sterling hold onto its recent gains? The continued rally in sterling over the past month or so means that it is now around 10% lower on a trade-weighted basis relative to where it stood on the eve of the EU referendum, rather than the 15... 14th December 2016 · 1 min read
Asia Chart Pack Malaysia moves to stabilise the ringgit The Malaysian central bank (BNM) has introduced a range of measures to stabilise the ringgit, which has been the region’s worst performing currency over the past month. The most significant step it... 14th December 2016 · 1 min read
Nordic & Swiss Economics Update Icelandic rate cut may not be the last The Central Bank of Iceland’s (CBI’s) decision to cut interest rates before the next phase of capital account liberalisation came as a surprise. While the strong economy calls for policy tightening in... 14th December 2016 · 1 min read
China Data Response Bank Lending & Broad Credit (Nov.) The jump in new lending last month was largely seasonal. Broad credit growth did pick up slightly but the increase was small and is unlikely to elicit a major policy response. 14th December 2016 · 1 min read
Nordic & Swiss Central Bank Watch Low inflation cements Riksbank loosening As inflation was a touch weaker in November than the Riksbank anticipated, monetary policy is set to be loosened further. While we expect the Riksbank to announce an extension of QE, the already-weak... 13th December 2016 · 1 min read
Global Inflation Watch Reflation in the US, but not elsewhere Even before the latest rise in oil prices, the average inflation rate in the G7 was set to rebound to over 2% early next year. In the US, Donald Trump’s planned fiscal stimulus should boost US demand... 13th December 2016 · 1 min read
Nordic & Swiss Central Bank Watch Keeping up the fight against a strong franc The Swiss National Bank will stress after its meeting on 15th December that it is prepared to act decisively to prevent any significant appreciation of the Swiss franc in the coming months. Indeed... 13th December 2016 · 1 min read
Middle East & North Africa Economic Outlook On course for weakest growth since the global financial crisis The Middle East & North Africa region will struggle again next year, recording its weakest economic growth since the global financial crisis in 2009. Fiscal policy will have to be tightened in most... 12th December 2016 · 1 min read
