UK Data Response MPC Minutes (Feb.) & Labour Data (Dec./Jan.) The minutes of February’s Monetary Policy Committee (MPC) meeting suggested that the pause in the Committee’s quantitative easing (QE) programme may be only temporary. If the recovery disappoints –... 17th February 2010 · 1 min read
Emerging Europe Economics Update Poland: new MPC but interest rates going nowhere for now As expected, the replacement of Poland’s entire Monetary Policy Council (MPC) which was completed today is unlikely to mark a fundamental shift in the Council’s bias. As a result, we are sticking to... 16th February 2010 · 1 min read
Bank of Japan Watch Caution to dominate, for now The Bank of Japan’s Policy Board meeting, which concludes on Thursday, is likely to be a non-event. There is still a compelling case for further monetary stimulus and today’s parliamentary testimonies... 16th February 2010 · 1 min read
Asia Economics Update India will hike policy rates soon The surge in January wholesale prices, published today, means that it is a near-certainty that India will raise policy interest rates at the next monetary policy review in April. The chance of an... 15th February 2010 · 1 min read
UK Economics Update MPC not tightening policy yet It has been suggested that central banks are already effectively tightening policy by withdrawing the emergency liquidity provided to the financial system during the depths of the crisis. But in the... 15th February 2010 · 1 min read
UK Economics Weekly MPC retains faith in spare capacity to reduce inflation Last week’s Inflation Report was always likely to show a downward revision to the MPC’s growth forecasts and it duly delivered. But less certain was whether the recent rise in inflation would have... 15th February 2010 · 1 min read
Asia Economics Update Markets too aggressive on Korea hikes to come The Bank of Korea (BoK) left its policy rate at 2.00% today, as expected. Political pressures to hold off monetary tightening have intensified and we now expect the first increase to be delayed until... 11th February 2010 · 1 min read
UK Economics Update Surveys point to significant amount of spare capacity In yesterday’s Inflation Report, the Bank of England highlighted the uncertainties surrounding the amount of spare capacity in the economy. Indeed, the recent stubbornness of UK inflation has led to... 11th February 2010 · 1 min read
UK Data Response Bank of England Inflation Report (February) The distinctly dovish tone of the Bank of England’s February Inflation Report begs the question of why the Monetary Policy Committee (MPC) did not implement a further extension of its quantitative... 10th February 2010 · 1 min read
UK Economics Update Is it the stocks or flows of QE that matter? The MPC’s decision to pause its quantitative easing (QE) programme has intensified the debate about whether it is the stocks or flows of asset purchases that matter most for the economy. The answer is... 8th February 2010 · 1 min read
Europe Economics Update ECB rate hikes still a very distant prospect The ECB is set to announce further plans to phase out unconventional policy support after its meeting next month. But with the Bank’s call for fiscal consolidation highlighting the downward pressure... 4th February 2010 · 1 min read
UK Economics Update MPC halts QE for now, but may have more work to do The Monetary Policy Committee’s decision not to extend its quantitative easing programme further this month does not necessarily mark the end of its extraordinary efforts to support the economy. And... 4th February 2010 · 1 min read
UK Economics Update MPC halts QE for now, but may have more work to do The Monetary Policy Committee’s decision not to extend its quantitative easing programme further this month does not necessarily mark the end of its extraordinary efforts to support the economy. And... 4th February 2010 · 1 min read
Asia Economics Update Indonesia set to stay on hold for longer Bank Indonesia (BI) left its policy rate at 6.5% today, as expected, and kept its neutral bias. The economic upswing should continue while annual inflation will probably stay below the 6% ceiling. We... 4th February 2010 · 1 min read
Emerging Europe Economics Update Romania: interest rates cut again, but recovery to disappoint This morning’s decision by the National Bank of Romania (NBR) to cut interest rates by 50bps to 7% is testament to the more stable political outlook that has emerged since the end of last year. With... 3rd February 2010 · 1 min read
