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
Nordic & Swiss 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
Europe Economics Update Lower borrowing rates won't kick-start the economy The recent falls in borrowing rates for euro-zone households and firms suggest that last year’s interest rate reductions by the ECB are already filtering through to the wider economy. While this is... 9th February 2009 · 1 min read
Europe Economics Update ECB pauses, but rates still heading towards zero Although the ECB left interest rates on hold at 2% as expected this month, it hinted clearly that rates would fall by a further 50bp next month. What’s more, President Trichet’s dovish tone supported... 5th February 2009 · 1 min read
UK Economics Update Still heading for zero Today’s cut in interest rates to just 1% confirmed that, for now at least, the Monetary Policy Committee remains focused on getting the cost of money as low as possible. We still expect rates to drop... 5th February 2009 · 1 min read
UK Economics Update Still heading for zero Today’s cut in interest rates to just 1% confirmed that, for now at least, the Monetary Policy Committee remains focused on getting the cost of money as low as possible. We still expect rates to drop... 5th February 2009 · 1 min read
ECB Watch ECB worryingly cautious President Trichet’s continued insistence that the next “important” monetary policy meeting will not be until March has more or less ruled out an interest rate cut this month. We still think that weak... 29th January 2009 · 1 min read
BoE Watch Framework for quantitative easing in place The Monetary Policy Committee (MPC) has slowed the pace of monetary loosening and stressed that a large policy stimulus is in train. But the economic outlook has deteriorated further. And the MPC may... 29th January 2009 · 1 min read
Asia Economics Update Reserve Bank of India not finished cutting rates The Reserve Bank of India’s (RBI) decision to keep the key policy rate unchanged has reinforced market expectations that rates will remain on hold in the next few month. But with the economy in the... 27th January 2009 · 1 min read
Asia Economics Update Bank of Japan has a lot more work to do The Bank of Japan’s modest programme of asset purchases is unlikely to be the last word, especially given the deterioration in economic and financial conditions acknowledged today in its own forecasts... 22nd January 2009 · 1 min read
