Global Economics Update How low can interest rates go? There may be some practical reasons why the floor for official interest rates should be set slightly higher than zero - perhaps 0.25% or 0.5%. But the long period of zero interest rates in Japan... 20th November 2008 · 1 min read
Emerging Europe Economics Update Falling currencies to prevent dramatic rate cuts (Nov 08) As the global slump intensifies, lingering inflation concerns have given way to fears of an imminent recession in Emerging Europe. But large external deficits have caused currencies in the region to... 18th November 2008 · 1 min read
UK Economics Update Fiscal boost and lower pound won't do the MPC's job The prospect of a fiscal boost in the forthcoming Pre-Budget Report and the recent sharp fall in the sterling exchange rate are both positive developments for the UK economy. But they will not prevent... 17th November 2008 · 1 min read
Europe Economics Update ECB lagging, but rates have much further to fall Following today’s decision to cut interest rates by 50bp to 3.25%, President Trichet’s comments confirmed that the ECB is not about to slash rates as aggressively as the Bank of England. Nonetheless... 6th November 2008 · 1 min read
UK Economics Update Fireworks from the MPC, and much more to come A day late maybe, but the Monetary Policy Committee certainly delivered some spectacular fireworks today in the form of the 150bp cut in interest rates, the biggest move since 1992. But rates still... 6th November 2008 · 1 min read
UK Housing Market Update Fireworks from the MPC, and much more to come A day late maybe, but the Monetary Policy Committee certainly delivered some spectacular fireworks today in the form of the 150bp cut in interest rates, the biggest move since 1992. But rates still... 6th November 2008 · 1 min read
UK Economics Update Fireworks from the MPC, and much more to come A day late maybe, but the Monetary Policy Committee certainly delivered some spectacular fireworks today in the form of the 150bp cut in interest rates, the biggest move since 1992. But rates still... 6th November 2008 · 1 min read
Asia Economics Focus Bank of Korea to cut rates to a historic low of 1.5% High indebtedness, dysfunctional credit markets, and the prospect of a deep and prolonged global slowdown will drag Korea into its first recession since the Asian financial crisis of 1997. We expect... 31st October 2008 · 1 min read
Asia Economics Update Bank of Japan still not finished cutting rates The Bank of Japan’s willingness to cut interest rates even further from already exceptionally low levels, combined with the prospect of outright declines in both economic activity and prices, suggests... 31st October 2008 · 1 min read
Japan Economics Update Bank of Japan still not finished cutting rates The Bank of Japan’s willingness to cut interest rates even further from already exceptionally low levels, combined with the prospect of outright declines in both economic activity and prices, suggests... 31st October 2008 · 1 min read
ECB Watch Another 50bps now and much more to come Severe strains in financial markets and a rapid deterioration in economic conditions have finally prompted a turnaround in the ECB’s previously hawkish stance. This supports our long-held view that... 30th October 2008 · 1 min read
BoE Watch A 75bps cut the next step to 1% rates With the economy plunging into recession and inflation risks rapidly receding, interest rates clearly need to fall considerably further. Accordingly, we expect the Monetary Policy Committee (MPC) to... 30th October 2008 · 1 min read
Europe Economics Update Norges Bank cuts rates and signals further falls to come The Norges Bank today cut interest rates for the second time this month and signalled that further cuts are to come. But we continue to expect stronger economic fundamentals to ensure that rates fall... 29th October 2008 · 1 min read
UK Economics Update UK interest rates to fall to 1%. Extraordinary circumstances require extraordinary actions. With the current recession likely to be deeper than that in the early 1990s and the credit crunch impairing the effectiveness of monetary... 29th October 2008 · 1 min read
