Europe Economics Update Euro-zone Monetary Indicators Monitor (Oct.) The latest monetary data suggest that stresses in the banking sector are growing. With the new bank recapitalisation plans unlikely to restore stability to the banking sector, we expect credit... 28th October 2011 · 1 min read
Japan Economics Update BoJ expands asset purchases but needs to do more Currency markets brushed off the latest expansion to the Bank of Japan’s asset purchase scheme, sending the yen back through 76 to the dollar shortly after the announcement. Although we think it... 28th October 2011 · 1 min read
Asia Economics Update New Zealand’s central bank in no rush to adjust policy The Reserve Bank of New Zealand (RBNZ) kept its cash rate at 2.5% today, as was widely anticipated. Post-earthquake rebuilding over the next few years will lift local price pressures and so the RBNZ... 28th October 2011 · 1 min read
US Fed Watch Fed still looking for ways to boost policy at the zero bound Only five weeks after the Fed announced its plan to extend the average maturity of its Treasury holdings and to reinvest principal payments from maturing mortgage-backed securities (MBS) holdings back... 27th October 2011 · 1 min read
Emerging Europe Economics Update Turkish Central Bank tightens the screw Today’s move by the Central Bank of Turkey to suspend its 7-day repo auction and force banks to instead access finance via its overnight window amounts to a backdoor interest rate hike of as much as... 27th October 2011 · 1 min read
Bank of Japan Watch Forecast downgrade and further easing, with a twist The Bank of Japan’s Policy Board is highly likely to cut its forecasts for GDP and inflation at its meeting tomorrow. Along with the fragility of financial markets and the strength of the yen, this... 27th October 2011 · 1 min read
Emerging Europe Economics Update Is Russia's Central Bank running out of options? Russia’s Central Bank (CBR) is in a bind. While recent liquidity shortages in the banking sector and an improved outlook for inflation argue in favour of monetary easing, the weak ruble and persistent... 26th October 2011 · 1 min read
Canada Economics Update Bank of Canada likely to cut policy rate next year The Bank of Canada now believes there is no need to remove any monetary policy stimulus anytime soon. Even this more dovish position, however, rests on the assumption that the global economy will... 26th October 2011 · 1 min read
Asia Economics Update India hikes rates for last time in the cycle While the Reserve Bank of India’s (RBI) decision to hike its repo rate by a further 25bp today was widely expected, what is more surprising is how explicitly it signalled that this is likely to be the... 26th October 2011 · 1 min read
Emerging Europe Economics Update Little room for manoeuvre Although financial markets have recovered a little this month, the activity data from the region has continued to soften. Yet in pretty much every country, policymakers have less scope to stimulate... 22nd October 2011 · 1 min read
Latin America Economics Update More to follow Brazil’s lead Brazil’s decision to continue cutting interest rates despite the fact that inflation is running at a five-year high remains as controversial as ever. Nonetheless, on balance we think that the central... 22nd October 2011 · 1 min read
Emerging Europe Economics Update Turkey: CBRT returns to orthodoxy Although the Turkish Central Bank (CBRT) kept the benchmark repo rate on hold, today’s MPC meeting marked a clear shift in its stance. Policymakers are no longer in easing mood are moving instead... 21st October 2011 · 1 min read
Asia Economics Update Interest rate cuts in the Philippines only a matter of time The central bank in the Philippines (BSP) left its policy rate on hold at 4.5% today, as expected. However, with inflation set to fall over the coming year, economic activity weak and fears... 21st October 2011 · 1 min read
Latin America Economics Update Brazil rate cuts not as risky as most assume Although last night’s cut in Brazilian interest rates was well anticipated and fully priced into the market, the decision will add to widespread concerns that policymakers have fallen behind the curve... 21st October 2011 · 1 min read
Asia Economics Update Bank of Thailand to cut next year The Bank of Thailand (BoT) kept its one-day repo rate at 3.5% today, as expected. The BoT’s concerns are rightly shifting from tackling inflation to supporting growth. Most analysts predict that the... 20th October 2011 · 1 min read
Bank of Canada Watch Policy outlook depends more on external events We have absolutely no doubt that the Bank of Canada will hold its policy interest rate at 1% next week. Were it not for the recent declines in long-term interest rates and depreciation of the Canadian... 20th October 2011 · 1 min read
