UK Data Response MPC Minutes (Oct.) The MPC’s unanimous vote for more QE in October and its growing concerns over the outlook for the economy suggest that further extensions of its bond purchase programme are likely next year. 20th October 2011 · 1 min read
US Economics Update Monetary Indicators Monitor (Sep.) The rapid pace of money growth continued in September. To some extent the recent pick up reflects a jump in the precautionary demand for money, however, so it is not necessarily inflationary. 19th October 2011 · 1 min read
US Economics Weekly Trade protection policies becoming more appealing Recent events in Washington suggest that, with fiscal policy largely tapped-out and monetary policy ineffective, trade protection policies are becoming more appealing. Import tariffs are not the first... 18th October 2011 · 1 min read
Asia Economics Update More policy loosening on the way in Singapore The Monetary Authority of Singapore (MAS) loosened its policy settings today by targeting a slower pace of currency appreciation. Q3 GDP figures, also released today, show that the economy had little... 15th October 2011 · 1 min read
Latin America Economics Update Chile: rate cuts expected from Q1 2012 Chile’s central bank (CBC) kept interest rates unchanged at 5.25% last night for a fourth straight month. We expect cuts from Q1 next year as global growth slows and food and energy price pressures... 15th October 2011 · 1 min read
Middle East & North Africa Economics Update Egyptian rates could be cut next year There were no surprises from Egypt’s Central Bank today as the benchmark interest rate was left unchanged at 8.25%. Although the economy is still weak, and core inflation in single digits, the threat... 14th October 2011 · 1 min read
Asia Economics Update Korea’s central bank to cut next year The Bank of Korea (BoK) kept its base rate at 3.25% today, as expected. The BoK’s commentary suggests it still expects to resume rate increases once concerns over the outlook for the global economy... 14th October 2011 · 1 min read
Latin America Economics Update Currency depreciation unlikely to delay interest rate cuts for long We doubt that the recent sell-off of currencies in Latin America will cause inflation to rise significantly over the coming months. Indeed, with economic activity set to slow over the coming months... 13th October 2011 · 1 min read
Asia Economics Update Indonesia changes course on interest rates Bank Indonesia (BI) unexpectedly cut its reference rate by 25bp to 6.5% today. We expect difficult economic conditions in the developed economies and falling inflation in Indonesia to bring more... 12th October 2011 · 1 min read
Asia Economics Weekly Falling inflation will provide a welcome boost Inflation appears to have peaked in most of emerging Asia, opening the door for rate cuts across much of the region next year. In this week’s key events, policy rate decisions from Sri Lanka... 11th October 2011 · 1 min read
Europe Economics Update ECB supports banks, but drags heels on rates The ECB today opted to focus on unconventional rather than conventional monetary policy measures, leaving interest rates on hold but substantially increasing its support for the banking sector. But... 7th October 2011 · 1 min read
UK Economics Update QE2 won't eliminate recession risks The MPC’s decision to re-launch its quantitative easing programme today confirms that the Committee finally recognises that the major threat to the UK is renewed recession, not inflation. But previous... 7th October 2011 · 1 min read
Asia Economic Outlook Asia set to weaken but still outperform A slowdown in developed economies in 2012-13 is set to pull down growth in emerging Asia to a below-trend pace. However, the region’s healthy fundamentals mean that emerging Asia should once again be... 6th October 2011 · 1 min read
Asia Economics Update Australia's central bank considers rate cuts The Reserve Bank of Australia (RBA) held its cash rate at 4.75% today, as was widely anticipated. But given the shift in the tone of the RBA’s commentary and our recent downgrades to global growth... 5th October 2011 · 1 min read
BoE Watch UK MPC Watch - QE2 on the slipway With the news on the UK and global economies continuing to deteriorate, it is now a question of when, rather than if, the Monetary Policy Committee will restart its quantitative easing (QE) programme... 4th October 2011 · 1 min read
Latin America Economics Update Uruguay: rates have peaked, cuts to follow in 2012 The Central Bank of Uruguay (BCU) left its benchmark interest rate unchanged at 8.0% last night as the board weighed downside risks to growth against stubbornly high inflation. We believe that the BCU... 1st October 2011 · 1 min read
