Europe Economics Update ECB moving towards unconventional policy Following the expected 50bp interest rate cut to 1.5%, the ECB made some broadly encouraging comments about further policy support to come. No plan is in place for quantitative easing, but the Bank... 5th March 2009 · 1 min read
Asia Economics Update Indian central bank still has a lot more work to do The Reserve Bank of India’s (RBI) decision to cut the key benchmark rate by 50bp today signals its determination to shore up a flagging economy. But with the key rate still relatively high at 5.0% and... 4th March 2009 · 1 min read
Global Markets Focus What does QE mean for government bonds? Quantitative easing (QE) has provided little support for government bonds so far, but regardless of exactly how this policy is implemented we still think that the wider economic and financial... 4th March 2009 · 1 min read
UK Economics Update Should the MPC have targets for QE? The uncertainties surrounding the likely quantity and effectiveness of Quantitative Easing (QE) in the UK have led to some suggestions that the Monetary Policy Committee should be set (or set itself)... 4th March 2009 · 1 min read
UK Economics Update Just how much QE is enough? With the launch of quantitative easing (QE) apparently imminent, speculation is growing over just how much needs to be done to have a material impact on the economy. While the answer is very uncertain... 3rd March 2009 · 1 min read
Global Economics Update Bank of Canada cuts rates & hints at shift to QE With its key interest rate now perilously close to zero it was no surprise that the Bank of Canada (BoC) announced today that next month it will unveil a framework for the possible implementation of... 3rd March 2009 · 1 min read
Asia Economics Update Reserve Bank of Australia still has work to do Today’s unexpected decision to keep rates on hold reflects the resilience of the Australian economy in the last few months. But with business confidence collapsing and a big correction still to come... 3rd March 2009 · 1 min read
BoE Watch MPC to embark on quantitative easing February’s Inflation Report confirmed that the Monetary Policy Committee (MPC) intends to implement a significant further policy stimulus. We still think that some of this will come about through a... 26th February 2009 · 1 min read
ECB Watch Another step towards zero, but still no plan for QE With the euro-zone recession deepening, the ECB is almost certain to deliver the 50bp interest rate cut that President Trichet signalled last month. What’s more, we expect hints of further cuts to... 26th February 2009 · 1 min read
US Economics Weekly Latest policy initiatives welcome but near-term outlook still dire 23rd February 2009 · 1 min read
US Economics Update Fed goes for an inflation target, not Treasury purchases 18th February 2009 · 1 min read
Emerging Europe Economics Update Pace of cuts to ease but still heading for record lows (Feb 09) 18th February 2009 · 1 min read
Global Economics Update Does Zimbabwe provide any lessons for QE? It is tempting to argue that the quantitative easing (QE) now being adopted in the US and the UK, among others, differs only in degree from the reckless printing of money that contributed to the hyper... 17th February 2009 · 1 min read
UK Economics Update QE will not eradicate deflation dangers The uncertainties over the likely effectiveness of unconventional monetary policy measures and the potentially negative effect on inflation expectations suggest that the imminent adoption of... 12th February 2009 · 1 min read
Asia Economics Update Bank of Korea heading towards zero. The Bank of Korea’s decision to cut the policy rate by 50bp to a fresh low of 2.0% signals its determination to support a crumbling economy. We had already expected rates to fall to 1%, but the... 12th February 2009 · 1 min read
Europe Economics Update Swedish interest rates heading towards zero The recent run of dreadful news from Sweden has forced the Riksbank to rip up its previous interest rate forecasts and cut interest rates from 2.0% to 1.0%. We now expect the economic recession to... 11th February 2009 · 1 min read
