UK Economics Update Monetary Indicators Monitor (Oct.) Broad money growth still looks very weak, with the pick-up seen earlier this year now looking like a statistical quirk. This supports the view of some MPC members, including Mervyn King, that a... 29th October 2010 · 1 min read
Europe Economics Update Euro-zone Monetary Indicators Monitor (Oct.) The latest euro-zone broad money and credit data provide further signs that the problems in the banking sector may be easing. Nonetheless, credit growth remains very weak and supports our view that... 27th October 2010 · 1 min read
Europe Economics Weekly Still battling to achieve fiscal stability Last week was characterised by fairly downbeat news on economic activity and ongoing struggles to achieve fiscal goals. Although the German business surveys remained positive, October’s fall in the... 25th October 2010 · 1 min read
US Economics Update Monetary Indicators Monitor (Sep.) The annual rate of decline in our Capital Economics' measure of M3 continues to slow. (See Chart below.) There is a good chance that the widely expected second round of quantitative easing from the... 19th October 2010 · 1 min read
Latin America Economics Update How should Brazil respond to capital inflows? The recent influx of foreign capital into Brazil is likely to be sustained over the coming months and quarters. But while this should ensure that the economy continues to grow at a decent pace, there... 19th October 2010 · 1 min read
Emerging Europe Economics Update Region's banks over the worst, but vulnerabilities remain Our latest ‘Heat Map’ suggests that pressures facing the region’s banks have continued to ease in recent months. But while the worst of the crisis is now behind us, familiar vulnerabilities persist... 19th October 2010 · 1 min read
US Economics Weekly What could the foreclosure crisis mean? The recent freezing of foreclosure proceedings by some major banks may not necessarily be a disaster. But we are mindful that in its early stages the sub-prime crisis did not look too severe either... 18th October 2010 · 1 min read
Japan Data Response Machinery Orders (Aug.) & Bank Lending (Sep.) There are some valid concerns over the outlook for the next few quarters, but the surge in machinery orders suggests that the long-awaited rebound in Japanese investment has at least begun. This... 13th October 2010 · 1 min read
China Economics Update What should we make of the rumoured RRR hike? Reuters is reporting that the required reserve ratio (RRR) for major banks has been raised. The People’s Bank (PBC) has not confirmed the move, but if true the best explanation is that the large banks... 11th October 2010 · 1 min read
Emerging Europe Economics Update Russia: crunch time approaching for the CBR Russian banks have become more willing to lend in recent months. Much still depends on oil prices, but a strengthening banking sector raises the chances that the rapid expansion of the monetary base... 11th October 2010 · 1 min read
Emerging Europe Economics Update Fears over capital inflows don't apply to Emerging Europe Fears that a rapid influx of capital into emerging markets may sow the seeds of the next bubble are starting to build. For the bulk of Central & Eastern Europe (CEE), however, the biggest risk is that... 8th October 2010 · 1 min read
DM Markets Chart Pack Fears of currency debasement buoy the euro The strength of the euro against the dollar in September coincided with a change in investors’ perceptions about the relative outlook for unconventional monetary policy on either side of the Atlantic... 6th October 2010 · 1 min read
Europe Economics Update Ireland takes a small step back from the brink The Irish Government’s announcement on the costs of rescuing its banks appears to have provided the markets with some reassurance for now. But with the banking sector still fragile and the economy... 30th September 2010 · 1 min read
UK Data Response Credit Conditions Survey (Q3) The Bank of England’s latest survey suggested that while credit conditions are continuing to thaw, the process remains very gradual. We do not expect lending growth to pick up pace any time soon. 30th September 2010 · 1 min read
UK Data Response Credit Conditions Survey (Q3) The Bank of England’s latest survey suggested that while credit conditions are continuing to thaw, the process remains very gradual. We do not expect lending growth to pick up pace any time soon. 30th September 2010 · 1 min read
UK Economics Update Monetary Indicators Monitor (Sep.) Underlying broad money growth still looks very weak – supporting MPC member Adam Posen’s view that more quantitative easing (QE) will be required in order to boost money and credit growth and hence... 29th September 2010 · 1 min read
