UK Economics Weekly Sterling caught in the middle Co-ordination between fiscal and monetary policy already appears to have stepped up a gear since the new Government took office, with Bank of England Governor Mervyn King endorsing the Government’s... 17th May 2010 · 1 min read
Asia Economics Update Malaysia set for sustained but gradual tightening Bank Negara (BNM) today raised the overnight policy rate by 25bp to 2.5%, as expected, while the double-digit surge in GDP in Q1 has been confirmed. The economic upswing looks set to remain strong and... 13th May 2010 · 1 min read
Global Markets Update Would QE be so bad for the euro? The experience in both Japan and the US shows that the adoption of quantitative easing by the ECB would not necessarily do lasting harm to the euro. But we still expect the currency to fall a lot... 13th May 2010 · 1 min read
Asia Economics Update Bank of Korea laying ground work for tightening The Bank of Korea (BoK) left its policy rate at 2.0% today, as expected. The economy is picking up strongly and inflation pressures are rising. However, BoK Governor Kim is sympathetic to the... 12th May 2010 · 1 min read
UK Data Response Inflation Report (May) & Labour Market (Mar./Apr.) The dovish tone of the Bank of England’s May Inflation Report suggested that the Monetary Policy Committee (MPC) has no intention of tightening policy anytime soon. If anything, it is more likely to... 12th May 2010 · 1 min read
UK Economics Update Fiscal uncertainty keeps MPC on hold Political uncertainty no doubt played a large part in the decision by the Monetary Policy Committee (MPC) to keep policy unchanged today. But with a large fiscal squeeze looming - whatever government... 10th May 2010 · 1 min read
UK Economics Update Fiscal uncertainty keeps MPC on hold Political uncertainty no doubt played a large part in the decision by the Monetary Policy Committee (MPC) to keep policy unchanged today. But with a large fiscal squeeze looming - whatever government... 10th May 2010 · 1 min read
Asia Economics Weekly Malaysia set to tighten again Malaysia’s central bank (BNM) will probably raise policy interest rates again this week, provided the debt crisis in the euro-zone periphery and the disorder in the markets does not escalate further... 10th May 2010 · 1 min read
Europe Economics Update ECB trying to provide reassurance The ECB is trying to inject calm amid the fiscal turmoil, maintaining a dovish stance after leaving interest rates at 1%. Some might have been disappointed that there were no hints of further... 6th May 2010 · 1 min read
Emerging Europe Economics Update Czech interest rates to stay at record lows into 2011 Today’s surprise interest rate cut in the Czech Republic reflects the ongoing lack of underlying inflation pressures in the economy, and lends further support to our view that rates are likely to... 6th May 2010 · 1 min read
Europe Economics Update Will the ECB be forced to adopt QE? With the impending bailout failing to reduce Greek bond yields and concerns spreading to other peripheral economies, some have suggested that the ECB might yet step in and buy government bonds itself... 6th May 2010 · 1 min read
Emerging Europe Economics Update Where now for Romanian interest rates? While the National Bank of Romania appears to be reaching the end of its current easing cycle, with the economic recovery still facing significant headwinds, rate hikes remain a distant proposition. 5th May 2010 · 1 min read
BoE Watch Fiscal uncertainty to keep MPC on hold May’s Monetary Policy Committee (MPC) meeting comes just before the publication of the next Inflation Report, making a change of policy slightly more likely than in the past couple of months. However... 5th May 2010 · 1 min read
Asia Economics Update Indonesia to delay rate hikes further Bank Indonesia (BI) left rates at 6.50% today, as expected. The upswing will stay strong but the high level of the rupiah is helping to keep inflation pressures contained. We now expect the first rate... 5th May 2010 · 1 min read
Asia Economics Update Australia rates to move still higher The Reserve Bank of Australia (RBA) lifted its cash rate to 4.50% today, as expected. Policy rates should move from neutral to being restrictive over the next 12 months, although rate hikes from now... 4th May 2010 · 1 min read
Asia Economics Weekly Australia to tighten again Australia’s Reserve Bank (RBA) meets on Tuesday and, although it is a close call, will probably lift the cash rate again by 25bp to 4.50%. This is now the markets’ view too. The economy is moving from... 3rd May 2010 · 1 min read
