UK Economics Weekly MPC will follow the Fed before long The Monetary Policy Committee’s decision not to follow the US Federal Reserve in embarking on a new bout of quantitative easing (QE) last week was justified by the recent news on the UK economy. But... 8th November 2010 · 1 min read
China Economics Update People's Bank signals intent to "normalise" policy The Q3 monetary policy report published earlier this week is the first formal policy statement from the People’s Bank (PBC) since interest rates were hiked a fortnight ago. In it, the PBC mentions a... 4th November 2010 · 1 min read
Europe Economics Update ECB unwilling to join the party After leaving interest rates on hold today, the ECB signalled that it is certainly not ready to follow the Fed into a renewed bout of unconventional policy support. Bolder action might yet be taken... 4th November 2010 · 1 min read
UK Economics Update QE2 still likely as recovery fades The decision by the Monetary Policy Committee (MPC) not to follow the Fed in implementing more quantitative easing (QE) today no doubt reflected the stronger tone of the economic data over the past... 4th November 2010 · 1 min read
UK Economics Update QE2 still likely as recovery fades The decision by the Monetary Policy Committee (MPC) not to follow the Fed in implementing more quantitative easing (QE) today no doubt reflected the stronger tone of the economic data over the past... 4th November 2010 · 1 min read
Asia Economics Update Bank Indonesia will probably hike rates soon It was no surprise that Bank Indonesia (BI) today left the repo rate unchanged at 6.5%. But BI has become more hawkish on the outlook for inflation despite the prospect that the rupiah will appreciate... 4th November 2010 · 1 min read
US Economics Update Fed's QE2 is no game changer The Fed's new programme of asset purchases is not going to pull the US economy out of its current malaise because, given the scale of the balance sheet problems affecting households and financial... 3rd November 2010 · 1 min read
Latin America Economics Update Latin America's impossible trinity The so-called ‘impossible trinity’ suggests that the only way that governments in Latin America can resist further currency appreciation is to either impose strict capital controls or align monetary... 3rd November 2010 · 1 min read
Asia Economics Update Australia's monetary tightening has a long way to go The Reserve Bank of Australia (RBA) unexpectedly hiked its cash rate by 25bp to 4.75% today. While the exact timing was a surprise, the resumption of monetary tightening was only a matter of when, not... 2nd November 2010 · 1 min read
Bank of Japan Watch Ready to respond? (Nov 10) The rescheduling of the Bank of Japan’s next Policy Board meeting to Thursday and Friday this week was surely designed to provide an early opportunity to assess any market fall-out from the US Fed’s... 2nd November 2010 · 1 min read
Asia Economics Update India's tightening cycle is just about finished The Reserve Bank of India (RBI), as expected, today lifted both the repo rate and reverse repo rate by 25bp. However, inflation will probably slow soon and the RBI is increasingly concerned about high... 2nd November 2010 · 1 min read
Latin America Economics Update Colombia: 'Currency war' has only just begun A raft of measures announced by the Colombian authorities late last week are unlikely to have much impact on the value of the peso. In the absence of a drop in commodity prices, capital inflows are... 1st November 2010 · 1 min read
Asia Economics Weekly India's tightening cycle looks nearly over The Reserve Bank of India (RBI) will probably lift its two policy rates by another 25bp this week. Inflation remains too high while the economic upswing, although losing some momentum, is likely to... 1st November 2010 · 1 min read
Japan Economics Weekly Bank of Japan keeps its options open The Bank of Japan’s decision to bring forward its November Policy Board meeting to the day after Wednesday’s FOMC raises the intriguing possibility that the Bank intends to respond to any additional... 1st November 2010 · 1 min read
US Economics Weekly Fed ready to roll the dice again With Republicans set to make significant gains in this week's mid-term elections, our suspicion is that fiscal policy will end up being largely paralysed for the next two years. The Fed should... 1st November 2010 · 1 min read
Global Markets Update Will QE continue to undermine the dollar? The conventional view that further quantitative easing (QE) is unambiguously negative for the dollar will be tested next week both by the outcome of the Fed meeting and by the decisions of other major... 29th October 2010 · 1 min read
