UK Economics Focus Policy challenges for the new UK Government The new coalition Government has made an industrious start. But it still faces some major policy challenges if it is to achieve the multiple goals of sorting out the public finances, improving... 15th July 2010 · 1 min read
Asia Economics Update India to hike rates again soon Recent India data show that inflation pressures remain acute and that the economic upswing is still broadly on track. Further monetary tightening is only a matter of time. It is almost certain that... 14th July 2010 · 1 min read
Asia Economics Update Thailand plays catch-up The Bank of Thailand (BoT) raised its policy rate by 25bp to 1.5% today, as expected. The social unrest has inflicted little damage on the economy while inflation is set to rise. Today’s move is not a... 14th July 2010 · 1 min read
Asia Economics Weekly Thailand set to hike policy rates The Bank of Thailand (BoT) meets this week and we, like the market, expect that they will move the policy rate up by 25bp to 1.5%. The social unrest in April-May appears to have inflicted little long... 12th July 2010 · 1 min read
Europe Economics Update ECB to maintain support for banks After leaving interest rates unchanged today, the ECB confirmed that it would continue to support the banking sector with unlimited liquidity provision. And its cautious tone regarding the economic... 8th July 2010 · 1 min read
Asia Economics Update Malaysia shows its confidence in the upswing Bank Negara Malaysia (BNM) raised its policy rate today by 25bp, as we had expected. Today’s move shows that the authorities see the local economic upswing as being sustainable and likely to stay... 8th July 2010 · 1 min read
UK Economics Update Case for near-term hike fading Today’s no-change decision confirms that the majority of the Monetary Policy Committee (MPC) still sees no pressing need to tighten monetary policy. With the biggest fiscal squeeze in decades getting... 8th July 2010 · 1 min read
Asia Economics Update Australia's monetary tightening has further to go The Reserve Bank of Australia (RBA) held its cash rate at 4.50% today, as expected. The external risks have increased but the RBA is still upbeat about the local outlook. GDP growth is forecast to... 6th July 2010 · 1 min read
Asia Economics Update Indonesia set to hike rates later this year Bank Indonesia (BI) left rates at 6.50% today, as expected. The economic upswing will stay strong but the high level of the rupiah is helping to hold down prices. Nevertheless, inflation will probably... 5th July 2010 · 1 min read
Asia Economics Weekly The first Bank of Korea rate hike is close The Bank of Korea (BoK) meets this week and the decision whether to hike or not looks to be finely-balanced. We expect the policy rate to be unchanged at 2.0%, although the chance of a July move is... 5th July 2010 · 1 min read
Asia Economics Update More India rate hikes on the way Today’s unscheduled Reserve Bank of India (RBI) rate hikes are a sensible and not unwelcome move. India’s economic upswing is strong and price pressures are already uncomfortably high. Further... 2nd July 2010 · 1 min read
Nordic & Swiss Economics Update Swedish Riksbank begins monetary policy tightening The widely predicted interest rate hike by the Swedish Riksbank from 0.25% to 0.5% made it thesecond western European central bank to tighten interest rates during the current cycle. But withother... 1st July 2010 · 1 min read
ECB Watch Pledging support for troubled banks With concerns about the euro-zone banking sector growing again, markets will be hoping for reassurance that the ECB will continue to provide ample liquidity. At the same time, the ECB is likely to... 1st July 2010 · 1 min read
Europe Economics Update Swedish Riksbank begins monetary policy tightening The widely predicted interest rate hike by the Swedish Riksbank from 0.25% to 0.5% made it the second western European central bank to tighten interest rates during the current cycle. But with other... 1st July 2010 · 1 min read
BoE Watch Divisions emerge, but near-term hike unlikely The Monetary Policy Committee (MPC) is getting increasingly nervous about the current rise in inflation, as evidenced by Andrew Sentance’s vote for an interest rate rise last month. However, most... 1st July 2010 · 1 min read
Asia Economics Update Thailand to start monetary tightening in Q3 Bank of Thailand (BoT) monthly indicators for May suggest that the hit to the economy from the violence in Bangkok has not been too severe, which is what we expected would be the case. Exports and... 1st July 2010 · 1 min read
