BoE Watch Inflation Report to show more QE needed The fact that the Monetary Policy Committee (MPC) chose not to extend its quantitative easing (QE) programme at July’s meeting has been taken by some as a sign that it thinks that a sufficient amount... 30th July 2009 · 1 min read
Asia Economics Update Reserve Bank of India turns its mind to inflation risks India’s central bank is increasingly concerned about inflation risks, raising the likelihood that it will hike interest rates before the end of the year. 28th July 2009 · 1 min read
Asia Economics Update Bank of Thailand to stay on hold throughout 2010 The Bank of Thailand (BoT) today left its overnight rate on hold at 1.25%. Its statement was neutral, but Thai markets are still pricing in policy rate hikes over the next year. We expect rates to... 15th July 2009 · 1 min read
Emerging Europe Economics Update Rates set to fall as confidence edges up (Jul 09) Signs of a pick-up in investor confidence means Hungary could resume its monetary-easing cycle later this month, with a further cut in rates also likely in Romania. Elsewhere, we still see room for... 15th July 2009 · 1 min read
UK Economics Focus The hardest part of QE is yet to come We do not think that reversing quantitative easing (QE) is an immediate concern for the Bank of England. Not only will the large amount of spare capacity keep inflationary pressures subdued for some... 13th July 2009 · 1 min read
UK Economics Update MPC not done with QE yet The MPC’s failure today to announce an extension of its quantitative easing (QE) programme was a little disappointing in light of the continued weakness of the economic outlook. But further policy... 9th July 2009 · 1 min read
Asia Economics Update Bank of Korea unlikely to raise rates soon The Bank of Korea (BoK) left its policy rate unchanged today amid signs that the domestic economy is recovering. Some commentators are expecting rate hikes soon, but we believe the significant... 9th July 2009 · 1 min read
Asia Economics Update Australian policy rates set to remain low The Reserve Bank of Australia (RBA) left its policy rate unchanged today while retaining a slight easing bias. Recent domestic data have been better than expected, but we forecast renewed... 7th July 2009 · 1 min read
UK Economics Focus How will the policymakers respond to recovery? The markets have assumed that the initial and main policy response to a recovery in the UK economy will come from higher interest rates, and at a fairly early stage. But there are some good reasons... 6th July 2009 · 1 min read
Latin America Economics Update Nearing the bottom Recent comments from policymakers suggest that, while growth concerns continue to dominate, interest rates are nearing their bottom. Accordingly, attention is starting to turn to when rates might be... 6th July 2009 · 1 min read
BoE Watch Another £25bn on its way soon? We think that the Monetary Policy Committee (MPC) will extend its quantitative easing (QE) programme further within the next couple of months. The Committee may prefer to wait until August, to... 2nd July 2009 · 1 min read
Europe Economics Update ECB relying heavily on bank lending channel Despite weaker signs of recovery in the euro-zone than elsewhere, the ECB’s policy support remains considerably narrower than other central banks’. President Trichet suggested today that the Bank is... 2nd July 2009 · 1 min read
Europe Economics Update Swedish Riksbank not ready to take the next step, yet Despite tentative signs of green shoots appearing, the Swedish Riksbank reduced interest rates to 0.25% and remains committed to keeping them at this rate for a prolonged period. But for now at least... 2nd July 2009 · 1 min read
Nordic & Swiss Economics Update Swedish Riksbank not ready to take the next step, yet Despite tentative signs of green shoots appearing, the Swedish Riksbank reduced interest rates to 0.25% and remains committed to keeping them at this rate for a prolonged period. But for now at least... 2nd July 2009 · 1 min read
