Asia Economics Weekly Korea's monetary tightening set to resume The Bank of Korea meets on Tuesday and, we judge, will probably lift its 7-day repo rate by 25bp to 2.5%. GDP growth has inevitably slowed given the tougher global environment but domestic demand is... 15th November 2010 · 1 min read
UK Economics Weekly Renewed rise in inflation needn't rule out QE2 Some of the reaction to last week’s Bank of England Inflation Report - including the 10bps or so rise in bond yields - seemed a bit over the top to us. After all, the MPC’s growth and longer-term... 15th November 2010 · 1 min read
Asia Economics Update Policy tightening in Malaysia has paused, not finished Bank Negara Malaysia (BNM) left policy interest rates unchanged today at 2.75%, as expected. The slowdown in GDP growth probably has further to go but we still anticipate that the upswing will regain... 12th November 2010 · 1 min read
Latin America Economics Update Will the next big move in interest rates be down? Policymakers in some countries have raised the prospect that interest rates may be cut in response to recent rapid currency appreciation. But while we would not dismiss the possibility altogether –... 10th November 2010 · 1 min read
Asia Economics Weekly Malaysia to resume policy tightening next year Malaysia’s central bank (BNM) meets to set policy interest rates on Friday and will likely leave the overnight rate unchanged at 2.75%. The economic upswing is losing some momentum and inflation will... 8th November 2010 · 1 min read
US Economics Update Fed's Survey shows no evidence of loan rebound The Fed's latest survey of Senior Loan Officers reveals a disturbing drop off in the demand for new loans and the renewed tightening of credit conditions for residential mortgages and other consumer... 8th November 2010 · 1 min read
Asia Economics Update Vietnam makes the right move Vietnam’s central bank (SBV) lifted its policy rate by 100bp, to 9%, late on Friday. The adjustment is a step in the right direction but far more has to be done to ensure that inflation slows to the... 8th November 2010 · 1 min read
Emerging Europe Economics Update Poland: gearing up to hike interest rates It is now more likely than not that Polish policymakers will start to raise interest rates later this month. But we doubt that this will signal the beginnings of a sustained tightening cycle. 8th November 2010 · 1 min read
US Economics Weekly QE2 will not lead to runaway inflation It is very easy to understand why some fear that the Fed's second-round of quantitative easing will lead to a surge in inflation. But we suspect that the ultimate impact on core inflation will be... 8th November 2010 · 1 min read
UK Economics Weekly MPC will follow the Fed before long The Monetary Policy Committee’s decision not to follow the US Federal Reserve in embarking on a new bout of quantitative easing (QE) last week was justified by the recent news on the UK economy. But... 8th November 2010 · 1 min read
China Economics Update People's Bank signals intent to "normalise" policy The Q3 monetary policy report published earlier this week is the first formal policy statement from the People’s Bank (PBC) since interest rates were hiked a fortnight ago. In it, the PBC mentions a... 4th November 2010 · 1 min read
Europe Economics Update ECB unwilling to join the party After leaving interest rates on hold today, the ECB signalled that it is certainly not ready to follow the Fed into a renewed bout of unconventional policy support. Bolder action might yet be taken... 4th November 2010 · 1 min read
UK Economics Update QE2 still likely as recovery fades The decision by the Monetary Policy Committee (MPC) not to follow the Fed in implementing more quantitative easing (QE) today no doubt reflected the stronger tone of the economic data over the past... 4th November 2010 · 1 min read
UK Economics Update QE2 still likely as recovery fades The decision by the Monetary Policy Committee (MPC) not to follow the Fed in implementing more quantitative easing (QE) today no doubt reflected the stronger tone of the economic data over the past... 4th November 2010 · 1 min read
Asia Economics Update Bank Indonesia will probably hike rates soon It was no surprise that Bank Indonesia (BI) today left the repo rate unchanged at 6.5%. But BI has become more hawkish on the outlook for inflation despite the prospect that the rupiah will appreciate... 4th November 2010 · 1 min read
US Economics Update Fed's QE2 is no game changer The Fed's new programme of asset purchases is not going to pull the US economy out of its current malaise because, given the scale of the balance sheet problems affecting households and financial... 3rd November 2010 · 1 min read
