UK Economics Weekly MPC right to be sanguine on inflation, for now Last week’s letter from Mervyn King to the new Chancellor George Osborne after inflation surprised on the upside again drew accusations that the Governor is being dangerously sanguine on the inflation... 24th May 2010 · 1 min read
Nordic & Swiss Economics Update Weaker euro-zone to stem Swiss recovery Switzerland’s low levels of public and private sector debt suggest that it will continue to out-grow the euro-zone over the next couple of years. But it will suffer from strong trade links with the... 19th May 2010 · 1 min read
UK Data Response MPC Minutes (May.) The minutes of May’s MPC confirmed that the Committee as a whole is still singing from the same Dovish hymn sheet as the Governor. Interest rates are unlikely to rise for a long time and further... 19th May 2010 · 1 min read
UK Data Response MPC Minutes (May.) The minutes of May’s MPC confirmed that the Committee as a whole is still singing from the same Dovish hymn sheet as the Governor. Interest rates are unlikely to rise for a long time and further... 19th May 2010 · 1 min read
Emerging Europe Economics Update Politics comes into play in Hungary (May 10) Concerns that the new government in Hungary will jeopardise the independence of the National Bank appear to be coming to fruition. While much remains uncertain, it seems clear that PM Orban will now... 18th May 2010 · 1 min read
Europe Economics Focus What to make of the ECB’s bond purchases Fears that the ECBs bond purchases will stoke inflation or encourage fiscal laxity are overblown. They do not constitute full-blown quantitative easing and will not allow euro-zone economies to escape... 18th May 2010 · 1 min read
Asia Economics Update India will probably hike rates again in June Data from India released late last week showed inflation pressures remain high while the economic upswing has stayed strong. Further monetary tightening is only a matter of time and we expect that... 17th May 2010 · 1 min read
UK Economics Weekly Sterling caught in the middle Co-ordination between fiscal and monetary policy already appears to have stepped up a gear since the new Government took office, with Bank of England Governor Mervyn King endorsing the Government’s... 17th May 2010 · 1 min read
Asia Economics Update Malaysia set for sustained but gradual tightening Bank Negara (BNM) today raised the overnight policy rate by 25bp to 2.5%, as expected, while the double-digit surge in GDP in Q1 has been confirmed. The economic upswing looks set to remain strong and... 13th May 2010 · 1 min read
Global Markets Update Would QE be so bad for the euro? The experience in both Japan and the US shows that the adoption of quantitative easing by the ECB would not necessarily do lasting harm to the euro. But we still expect the currency to fall a lot... 13th May 2010 · 1 min read
Asia Economics Update Bank of Korea laying ground work for tightening The Bank of Korea (BoK) left its policy rate at 2.0% today, as expected. The economy is picking up strongly and inflation pressures are rising. However, BoK Governor Kim is sympathetic to the... 12th May 2010 · 1 min read
UK Data Response Inflation Report (May) & Labour Market (Mar./Apr.) The dovish tone of the Bank of England’s May Inflation Report suggested that the Monetary Policy Committee (MPC) has no intention of tightening policy anytime soon. If anything, it is more likely to... 12th May 2010 · 1 min read
UK Economics Update Fiscal uncertainty keeps MPC on hold Political uncertainty no doubt played a large part in the decision by the Monetary Policy Committee (MPC) to keep policy unchanged today. But with a large fiscal squeeze looming - whatever government... 10th May 2010 · 1 min read
UK Economics Update Fiscal uncertainty keeps MPC on hold Political uncertainty no doubt played a large part in the decision by the Monetary Policy Committee (MPC) to keep policy unchanged today. But with a large fiscal squeeze looming - whatever government... 10th May 2010 · 1 min read
Asia Economics Weekly Malaysia set to tighten again Malaysia’s central bank (BNM) will probably raise policy interest rates again this week, provided the debt crisis in the euro-zone periphery and the disorder in the markets does not escalate further... 10th May 2010 · 1 min read
Europe Economics Update ECB trying to provide reassurance The ECB is trying to inject calm amid the fiscal turmoil, maintaining a dovish stance after leaving interest rates at 1%. Some might have been disappointed that there were no hints of further... 6th May 2010 · 1 min read
