Asia Economics Weekly Rate cuts are coming in Vietnam Falling inflation gives the State Bank of Vietnam (SBV) scope to cut interest rates to support growth. However, large cuts could end up destabilising the fragile economy. The SBV will need to be... 27th February 2012 · 1 min read
Latin America Economics Update Colombia hikes rates as imbalances resurface The Central Bank of Colombia (BANREP) increased interest rates by 25bps to 5.25% on Friday night. With concerns about the strength of the peso and unbalanced growth coming back onto the agenda, we... 27th February 2012 · 1 min read
UK Data Response MPC Minutes (Feb.) The minutes of February’s MPC meeting were slightly more dovish than last week’s Inflation Report, leaving a further extension of quantitative easing (QE) looking a bit more likely than before. 22nd February 2012 · 1 min read
Latin America Economics Update Mexican interest rates still more likely to fall than rise Recent data suggest that Mexico made a decent start to Q1. However, growth remains vulnerable to a deterioration in external conditions, particularly in the US, and while we are more upbeat than a few... 21st February 2012 · 1 min read
Emerging Europe Economics Update Turkish interest rates: little room for manoeuvre The Turkish central bank’s (CBRT’s) decision today to lower the upper bound of its interest rate “corridor” suggests that it is increasingly confident of achieving a gradual adjustment in the current... 21st February 2012 · 1 min read
Japan Economics Weekly Additional monetary easing is not enough The Bank of Japan’s latest increase in its asset purchase program has caused asset prices to rally and the yen to weaken. However, it remains to be seen whether the effect will be sustained and... 20th February 2012 · 1 min read
Nordic & Swiss Economics Update Swedish rate cut unlikely to be the last The Swedish Riksbank indicated that it expects its latest 25 basis point interest rate cut to be the last in the cycle. But we expect the adverse knock-on effects from an intensification of the euro... 16th February 2012 · 1 min read
Latin America Economics Update QE3 would be a damp squib for Lat Am markets Hopes are rising that further unconventional monetary easing by Western central banks – be it a third round of quantitative easing (QE) by the Fed, or Long Term Refinancing Operations (LTROs) by the... 16th February 2012 · 1 min read
Europe Economics Update Swedish rate cut unlikely to be the last The Swedish Riksbank indicated that it expects its latest 25 basis point interest rate cut to be the last in the cycle. But we expect the adverse knock-on effects from an intensification of the euro... 16th February 2012 · 1 min read
Emerging Europe Economics Update Hungary bank plan unlikely to trigger revival in bank lending The “collateralised credit facility” unveiled by the National Bank of Hungary today may help to ease the maturity mismatch between banks’ assets and liabilities but it will do nothing to address the... 15th February 2012 · 1 min read
Emerging Europe Economics Update Euro-zone bank deleveraging still a threat to growth Fears that euro-zone banks might suddenly withdraw their funding to subsidiaries in Emerging Europe have eased markedly over the past month, due in large part to the success of the ECB’s long-term... 15th February 2012 · 1 min read
UK Data Response Bank of England Inflation Report (Feb.) On the face of it, February’s Bank of England Inflation Report suggested that the MPC is unlikely to extend its asset purchase programme much further. But we think that inflation will fall further... 15th February 2012 · 1 min read
Latin America Economics Update Rates on hold as Chile’s economy regains some momentum Chile’s central bank (CBC) kept interest rates unchanged at 5.0% last night in response to a small rebound in domestic economic activity and a temporary recovery in global market sentiment. The latest... 15th February 2012 · 1 min read
Japan Economics Update BoJ easing and explicit target is step in right direction We welcome today’s move by the Bank of Japan to expand its Asset Purchase Scheme and formalise its inflation target. Although these moves should help support the economy and ease tensions in financial... 14th February 2012 · 1 min read
UK Economics Weekly QE unlikely to be nearing an end Some interpreted the Committee’s decision to increase QE by “only” £50bn last week as a sign that it is close to thinking that it has done enough. However, we think that next week’s Inflation Report... 13th February 2012 · 1 min read
Europe Economics Update ECB focuses on credit crunch dangers The ECB today approved further measures to address the danger of a credit crunch in the euro-zone. However, it continues to resist taking more direct action to tackle the region’s fiscal crisis. 9th February 2012 · 1 min read
