UK Data Response Bank of England Inflation Report (Nov.) November’s Bank of England Inflation Report clearly paved the way for a significant further extension of the MPC’s asset purchase programme. 16th November 2011 · 1 min read
Latin America Economics Update Chile, Peru play a waiting game on rates The Central Bank of Chile (CBC) kept its policy rate at 5.25% for a fifth successive month last night. While policymakers in Chile and Peru will continue to exercise caution by not rushing into easing... 16th November 2011 · 1 min read
Emerging Europe Economics Update Euro-crisis takes centre stage The deepening crisis in the euro-zone has led to a marked deterioration in the outlook for growth across Emerging Europe, but it will bring a range of different responses from policymakers in the... 14th November 2011 · 1 min read
Canada Economics Weekly Fussing over federal finances is misplaced We agree that the federal government will take longer than previously thought to return to budgetary balance but, really, so what? Considering that the primary federal budget is already balanced and... 14th November 2011 · 1 min read
Asia Economics Update Central banks of Korea and Malaysia to cut rates in 2012 Policy rates were left unchanged in Korea and Malaysia today, but both central banks are becoming increasingly concerned about the downside risks for exports. We expect policymakers in both countries... 11th November 2011 · 1 min read
Latin America Economics Update Peru: modest rate cuts likely in 2012 Policy makers in Peru left interest rates unchanged at 4.25% last night. In the very near-term strong domestic conditions, rising inflation and a planned fiscal stimulus will deter rate cuts, despite... 11th November 2011 · 1 min read
Middle East & North Africa Economics Update Egypt: Inflation collapsing but no room for near-term rate cuts Although Egyptian inflation fell to its slowest rate for 4 years in October, currency concerns continue to prevent a near-term cut in interest rates. Indeed, if there is any rate change before the end... 10th November 2011 · 1 min read
UK Economics Update MPC unlikely to pause for long Given that the £75bn of asset purchases announced in October has not been completed yet, today’s decision by the MPC to leave policy unchanged was unsurprising. However, the Committee has sent some... 10th November 2011 · 1 min read
Asia Economics Update Bank Indonesia is cutting rates too aggressively Bank Indonesia (BI) unexpectedly cut its policy rate today by 50bp to 6.0%. Following a 25bp cut last month, strong third quarter GDP growth and continued rapid credit expansion, we think the central... 10th November 2011 · 1 min read
Bank of Japan Watch What next for the Asset Purchase Program? The Bank of Japan is unlikely to make any changes to its policy stance at its November meeting next week. The two main policy options available are a further increase in the size of the Bank’s Asset... 10th November 2011 · 1 min read
China Economics Update Inflation tumbles Inflation fell sharply in October and further falls are likely in coming months. With downside risks to economic growth high and rising, today’s data bolster our confidence that China’s policy is set... 9th November 2011 · 1 min read
BoE Watch MPC to pause this month, but more QE ahead After voting to expand its quantitative easing (QE) programme last month, the Monetary Policy Committee (MPC) looks likely to pause for breath at this week’s policy meeting. Nonetheless, with the... 7th November 2011 · 1 min read
Europe Economics Update Draghi makes a dovish start, but won’t up bond purchases The ECB’s decision to cut interest rates by 25 basis points to 1.25% suggests that it is starting to acknowledge the effects of the region’s debt crisis on the wider economy. But, for now at least... 3rd November 2011 · 1 min read
Latin America Economics Update Is there a floor on Brazilian interest rates? The decision by Brazil’s central bank to start monetary easing has revived talk about a “floor” on interest rates in Latin America’s largest economy. At present, the minimum rate of return on popular... 2nd November 2011 · 1 min read
Asia Economics Update Australia's central bank to cut further The Reserve Bank of Australia (RBA) lowered its cash rate by 25bp to 4.5% today,moving its policy settings towards a more neutral rather than restrictive stance. We expect conditions outside of the... 1st November 2011 · 1 min read
UK Economics Update Monetary Indicators Monitor (Oct.) The pronounced weakness of the latest broad money and lending data suggests that the Monetary Policy Committee (MPC) was right to restart QE in October. However, the MPC seems to be getting less ‘bang... 31st October 2011 · 1 min read
