Emerging Europe Economics Update Russia steps up fight against inflation Today’s decision by the Central Bank of Russia (CBR) to raise bank reserve requirements is further evidence that inflation worries are starting to trump growth concerns. 31st January 2011 · 1 min read
Asia Economics Update Pakistan's central bank hopes for the best In a surprise decision over the weekend, the State Bank of Pakistan (SBP) left its policy rate unchanged at 14.0%. The SBP was unequivocal in its criticism of government policies but is prepared to... 31st January 2011 · 1 min read
Asia Economics Weekly Bank Indonesia likely to hike this week It is a close call but we still expect Indonesia’s central bank (BI) to finally lift its policy rate this week, by 25bp to 6.75%. The economic upswing should stay in good shape, while macro prudential... 31st January 2011 · 1 min read
Europe Economics Weekly ECB & rising euro pose new threats Last week’s successful first EFSF bond issue was hailed by some as a strong vote of confidence in the euro-zone. We are not so sure. The rise in Portuguese bond yields back up to the 7% danger level... 31st January 2011 · 1 min read
Europe Economics Update Euro-zone Monetary Indicators Monitor (Jan.) The latest euro-zone money and credit data continue to suggest that inflationary pressures in the region as a whole remain subdued, adding to evidence that the recent sharp rise in the headline CPI... 28th January 2011 · 1 min read
Latin America Economics Update Tombini makes his mark The minutes from this month’s meeting of the Brazilian Monetary Policy Committee (COPOM) were unequivocally hawkish and should banish any lingering concerns about a shift in policy priorities under... 28th January 2011 · 1 min read
ECB Watch ECB to maintain its hawkish stance At February’s press conference, President Trichet looks set to maintain a fairly hawkish tone, adding to fears that the ECB might raise interest rates later this year and possibly placing further... 27th January 2011 · 1 min read
Asia Economics Update Bank Negara will probably tighten soon Bank Negara Malaysia (BNM) left the overnight rate unchanged today at 2.75%, as expected. Nevertheless, few will now have any doubts about the durability of the economic upswing while even the BNM... 27th January 2011 · 1 min read
Asia Economics Update New Zealand's Reserve Bank continues to wait and see The decision by the Reserve Bank of New Zealand (RBNZ) to leave the cash rate at 3.0% for the fourth consecutive meeting was universally expected. We anticipate that the upswing will gain more... 27th January 2011 · 1 min read
US Economics Update Fed biding its time The tone of the Fed's latest policy statement suggests that neither the most recent pick up in economic growth nor the continued surge in commodity prices have had much of an impact on officials... 26th January 2011 · 1 min read
UK Data Response MPC Minutes (Jan.) Yesterday’s disappointing GDP figures re-ignited concerns about a return to so-called “stagflation” – the toxic combination of high inflation and high unemployment/weak economic growth that plagued... 26th January 2011 · 1 min read
Asia Economics Update India's Reserve Bank still has more work to do The central bank in India (RBI) today hiked the repo rate by 25bp to 6.5%, as was expected. In addition, the RBI adopted an unequivocally hawkish stance. High inflation, particularly when led by food... 25th January 2011 · 1 min read
Japan Economics Update Bank of Japan has more work to do There were no surprises from the Bank of Japan meeting that ended today and policy was unchanged. Nonetheless, we continue to expect further easing later this year to undermine the yen as the global... 25th January 2011 · 1 min read
Emerging Europe Economics Update Is Turkish monetary policy really a recipe for disaster? The Central Bank of Turkey’s policy of cutting interest rates to deter speculative capital inflows despite the economy’s comparatively good growth prospects is not necessarily the recipe for disaster... 24th January 2011 · 1 min read
Emerging Europe Economics Update Hungary hikes again, but all eyes back on fiscal policy The National Bank of Hungary (NBH) this afternoon voted to hike interest rates by 25bps for the third consecutive month (to 6.00%). The outlook remains highly uncertain, but on balance today’s move... 24th January 2011 · 1 min read
Latin America Economics Update Rising inflation to be met with unorthodox measures With the notable exception of Mexico, containing inflation remains the immediate challenge for policymakers in Latin America. Although the pick-up in inflation looks set to be driven by food and... 24th January 2011 · 1 min read
