Asia Economics Update India's monetary policy tightening to resume soon India’s Reserve Bank (RBI) kept its repo rate unchanged today at 6.25%, as was widely expected. Nevertheless, the monetary policy tightening is not over. The upswing will stay strong in coming... 16th December 2010 · 1 min read
Nordic & Swiss Economics Update Swedish Riksbank signals more rate hikes to come The Swedish Riksbank responded to the recent strong economic data by raising interest rates today for the fourth time since July. But while further rate hikes are inevitable, we expect monetary policy... 15th December 2010 · 1 min read
US Economics Update Fed sticks to its guns The Fed was always going to leave the size of the second round of quantitative easing (QE2) unchanged today as it is too soon to judge whether it has been a success or a failure. If we are right in... 15th December 2010 · 1 min read
Europe Economics Update Swedish Riksbank signals more rate hikes to come The Swedish Riksbank responded to the recent strong economic data by raising interest rates today for the fourth time since July. But while further rate hikes are inevitable, we expect monetary policy... 15th December 2010 · 1 min read
US Economics Update Monetary Indicators Monitor (Nov.) The rate of decline in our Capital Economics' measure of M3 has eased, while the growth rates of M1 and M2 have picked up again slightly. However, there is nothing here to suggest that inflation is... 14th December 2010 · 1 min read
Emerging Europe Economics Update Monetary policy to get creative in 2011 For much of Emerging Europe growth concerns continue to outweigh inflation worries. Accordingly, monetary policy will remain accommodative in most countries next year. The exception to this is Turkey... 14th December 2010 · 1 min read
Europe Economics Focus What can euro-zone policymakers do? Euro-zone policymakers face enormous challenges to avoid a near-term financial disaster, reduce governments’ debt burdens in the medium term and foster economic growth. Given the scale of these tasks... 13th December 2010 · 1 min read
Asia Economics Weekly India's Reserve Bank to pause, not stop The Reserve Bank (RBI) will probably keep the repo rate unchanged at 6.25% on Thursday, while the cash reserve ratio will almost certainly be held steady at 6.0% given ongoing tight liquidity... 13th December 2010 · 1 min read
Latin America Economics Update Peruvian rates on hold as currency concerns persist Last night, the Central Reserve Bank of Peru (BCRP) held interest rates at 3.0% for the third consecutive month. Even though the outlook for inflation is deteriorating, currency concerns are likely to... 10th December 2010 · 1 min read
Latin America Economics Update Brazil slows in Q3, but should bounce in Q4 The slowdown in Brazilian GDP growth to 0.5% q/q in Q3, from 1.8% q/q in Q2, should be a shortlived blip and the economy appears to have picked up pace once again in Q4. Looking ahead to 2011, the... 9th December 2010 · 1 min read
Asia Economics Update Further Bank of Korea tightening only a matter of time The Bank of Korea (BoK) held its policy rate at 2.5% today, as expected. Nonetheless, the economy should regain momentum during the course of next year while inflation is likely to trend higher. The... 9th December 2010 · 1 min read
UK Economics Update 2011 to be the year of QE2 With the Monetary Policy Committee (MPC) still sitting firmly on the proverbial fence, this month’s no-change decision is all but certain to be repeated in the next month or two. But we still think... 9th December 2010 · 1 min read
Asia Economics Update New Zealand to keep policy rates unchanged for longer The Reserve Bank of New Zealand (RBNZ) left the cash rate at 3.0% earlier today, as expected. What’s more, the Monetary Policy Statement (MPS) was downbeat, yet again. We have adjusted our forecast... 9th December 2010 · 1 min read
Latin America Economics Update Brazilian inflation increases, but rates still on hold Brazilian inflation rose to 5.6% y/y in November – well above the Brazilian Central Bank’s (BCB’s) 4.5% target. But the bulk of the pick-up was driven by food prices and with policymakers at the BCB... 8th December 2010 · 1 min read
Canada Economics Update Bank of Canada in no hurry to raise rates The Bank of Canada sat on the fence today, careful not to say too much until it has updated its economic outlook. The Bank acknowledged economic growth in the second half of this year has been weaker... 7th December 2010 · 1 min read
US Fed Watch Fed needs to give QE2 time before making adjustments After announcing it would purchase an additional $600bn of Treasury securities at the last FOMC meeting in early November, it is very unlikely that the Fed will change course at next Tuesday's meeting... 7th December 2010 · 1 min read
