Africa Economics Update Pace of monetary easing to slow in Uganda The Bank of Uganda lowered its benchmark interest rate by 200bps to 13.00% today and, while the easing cycle still has further to run, we think the pace of rate cuts may slow in the months ahead. 2nd October 2012 · 1 min read
Asia Economics Update Australia finished cutting rates The Reserve Bank of Australia (RBA) cut its policy rate by 25bp to 3.25% today. We think this will mark the end of its loosening cycle, with rates set to remain on hold until late 2013. 2nd October 2012 · 1 min read
Canada Economics Update What does Canada's new GDP methodology mean? Changes to Canada's quarterly national accounts methodology have resulted in a higher level of GDP. These important changes, however, have not significantly affected GDP growth and does not change our... 1st October 2012 · 1 min read
UK Economics Update Monetary Indicators Monitor (Sep.12) On the face of it, the pick-up in the MPC’s preferred measure of broad money growth supports the Committee’s view that its asset purchases are still having a significant impact on the economy. But... 1st October 2012 · 1 min read
Latin America Economics Update Interest rates have further to fall in Colombia The Colombian central bank’s (BANREP) decision to keep interest rates on hold does not necessarily signal the end of the easing cycle, but it does suggest that further cuts may be punctuated by pauses... 1st October 2012 · 1 min read
Latin America Economics Update Uruguayan rate hike will do little to tame inflation The Uruguayan Central Bank’s decision to hike interest rates by 25bps is unlikely to do much to tackle stubbornly high inflation. Strong price pressures are largely due to structural rigidities in the... 1st October 2012 · 1 min read
Europe Economics Weekly Small steps forward don't lift the uncertainty Developments in the euro-zone last week brought the implementation of more decisive policy action to tackle the region’s debt crisis an important step closer. Most notably, the Spanish budget included... 1st October 2012 · 1 min read
Africa Economics Update Weak Q2 growth to prompt further rate cuts in Kenya Weaker-than-expected second quarter growth in Kenya reinforces the case for further rate cuts at the central bank’s next meeting in November. While we expect a slight pick-up in the second half of the... 28th September 2012 · 1 min read
Energy Watch QE3 boost to be short-lived Rather than providing a further boost to oil prices, the announcement of open-ended quantitative easing (QE3) by the US Fed appears to have marked at least a temporary peak. The focus is already... 28th September 2012 · 1 min read
Bank of Japan Watch BOJ to shift emphasis to improving growth potential On the face of it, the Bank of Japan’s Policy Board meeting next week looks like it will be a non event. The Board has acknowledged the weakening state of the domestic and global economy, and it... 28th September 2012 · 1 min read
ECB Watch Providing little more clarity on OMTs Having been lauded as being “as mighty as the Fed” after unleashing a policy “bazooka” in the form of the Outright Monetary Transactions (OMT) programme in September, the ECB is unlikely to announce... 27th September 2012 · 1 min read
Middle East & North Africa Economics Update UAE: New central bank rules positive in the long term New rules limiting the exposure of the UAE’s banks to government entities are unlikely to boost lending to the private sector in the immediate term. But in time, the change in regulations could... 27th September 2012 · 1 min read
Emerging Europe Economics Update Czech Republic nears the zero-bound The Czech National Bank cut interest rates to just 0.25% earlier today and suggested that, should further stimulus be necessary, this would probably take the form of intervention in the foreign... 27th September 2012 · 1 min read
US Economics Update How has the Fed's reaction function changed? The Fed's decision to restart its large-scale asset purchases, this time with an open-ended agency MBS programme, is part of what could potentially be a much wider shift in the monetary policy... 26th September 2012 · 1 min read
Emerging Europe Economics Update Hungary cuts rates, Poland set to follow Hungary cut interest rates again today, but a combination of familiar financial vulnerabilities and a failure to make meaningful progress on an IMF deal means that the room for further significant... 25th September 2012 · 1 min read
US Economics Update Fed‘s purchases of MBS may have limits QE3 could eventually leave the Fed holding nearly 30% of all mortgage-backed securities, making it a bigger player in the market than either banks or mutual funds. This suggests that, unless economic... 25th September 2012 · 1 min read
