Europe Economics Update How far is Swiss intervention propping up the euro? Speculation that the Swiss National Bank’s (SNB’s) currency intervention has stemmed the decline in the trade-weighted euro seems overplayed. But the SNB’s struggle to prevent the franc surging... 16th June 2010 · 1 min read
Japan Economics Update Bank of Japan sacrifices a little credibility The Bank of Japan’s new loan scheme is essentially a tool of industrial policy (and a clumsy one at that) rather than a significant easing of monetary conditions. As such, it will not help the Bank’s... 15th June 2010 · 1 min read
Latin America Economics Update Two-speed tightening cycle underway With the recovery well underway in most parts of Latin America the monetary tightening cycle has begun in some parts of the region. Policymakers in Brazil are in the midst of an aggressive tightening... 14th June 2010 · 1 min read
Asia Economics Update India set to hike rates again soon Data from India released today, and late last week, showed that inflation pressures have picked up again while the economic upswing has stayed strong. Further monetary tightening is only a matter of... 14th June 2010 · 1 min read
China Economics Update Diminishing inflation threat should keep rates on hold Consumer price inflation has just edged above 3% but with price pressures still low and output growth already slowing, there is no pressing need to tighten policy. Indeed, we no longer expect interest... 11th June 2010 · 1 min read
Europe Economics Update ECB maintains a dovish stance The ECB maintained a supportive stance today, treating signs of an economic recovery with caution. While the Bank seems unlikely to resort to outright quantitative easing for now, sterilised bond... 10th June 2010 · 1 min read
UK Economics Update Rising inflation unlikely to scare MPC into rate hikes The lower path of public borrowing projected by the Office for Budget Responsibility might seem to relieve some of the pressure for an additional fiscal tightening in next week’s Budget. But we don’t... 10th June 2010 · 1 min read
Asia Economics Update Korea will probably start to tighten in Q3 The Bank of Korea (BoK) left its policy rate at 2.0% today, as expected. The turmoil in the markets and the European debt crisis weighed heavily in the decision to stay on hold. However, the local... 10th June 2010 · 1 min read
Asia Economics Update New Zealand to move gradually from now on The Reserve Bank (RBNZ) earlier today lifted its cash rate by 25bp to 2.75%, as expected. The local economic upswing should continue, despite the increased external risks, but the recovery will... 10th June 2010 · 1 min read
Asia Economics Weekly Bank of Korea to hike soon, but not this month Korea’s central bank meets on Thursday and is likely to keep its policy rate on hold. The Bank of Korea (BoK) will probably wait for market volatility, stemming from an escalation in tensions with... 7th June 2010 · 1 min read
BoE Watch Rise in inflation fails to rattle MPC The Monetary Policy Committee (MPC) appears, more than ever, to be in wait and see mode. A number of uncertainties – such as the severity of the upcoming fiscal squeeze and the impact of recent events... 3rd June 2010 · 1 min read
Asia Economics Update The Philippines looks set to tighten in Q3 The Philippines’ central bank (BSP) left the reverse repo rate unchanged at 4.0% today, as expected. The economic upswing should hold strong in coming months while the policy rate looks set to remain... 3rd June 2010 · 1 min read
Asia Economics Update Indonesia still on track to hike later this year Bank Indonesia (BI) left rates at 6.50% today, as expected. The economic upswing will stay strong but the high level of the rupiah is helping to hold down prices. Nevertheless, inflation will probably... 3rd June 2010 · 1 min read
ECB Watch Resisting full-blown QE... for now After making radical changes to unconventional policy just a few weeks ago, further alterations seem unlikely this month. The ECB will give little away about the size and type of future bond purchases... 3rd June 2010 · 1 min read
Asia Economics Update Thailand rates will probably move up in Q3 The Bank of Thailand (BoT) left its policy rate unchanged at 1.25% today, as was universally expected. The economy warrants higher rates but the political situation needs to stay calmer for longer. We... 2nd June 2010 · 1 min read
