Japan Economics Update Yen likely to weaken further in wake of disaster The economic and market impact of the terrible tragedy that has hit Japan will depend partly on the amount of the damage but also on who pays the bills. A large share of the cost will probably have to... 14th March 2011 · 1 min read
Asia Economics Weekly India to raise repo rate despite falling inflation We expect the Reserve Bank of India (RBI) to hikes its key policy rates on Thursday. However, the spike in food prices appears to be unwinding, while recent activity figures have been weak. These... 14th March 2011 · 1 min read
US Economics Weekly Debt limit spat has unleashed QE3 by stealth One of the unintentional side effects of the current impasse in Congress over raising the debt ceiling is that it has led to a significant expansion of the monetary base. Indeed, the drop in the... 14th March 2011 · 1 min read
Japan Economics Weekly National disaster The Bank of Japan has announced that the two-day Policy Board meeting previously scheduled for Monday and Tuesday will now be cut short to one day and conclude on Monday. No reason was given, but the... 14th March 2011 · 1 min read
Europe Economics Weekly Political hurdles threaten grand plan Expectations for the EU summit to discuss the latest policy proposals to tackle the euro-zone debt crisis have fallen so far that the scope for disappointment in the near term may be limited... 14th March 2011 · 1 min read
UK Economics Weekly Evidence of consumer slowdown mounting News on consumer spending has been trickling in over the last couple of weeks. While each piece of news has not been significant on its own, put it all together and a pretty convincing picture of a... 14th March 2011 · 1 min read
US Data Response Retail Sales (Feb.) The 1.0% m/m increase in February's retail sales may only have been in line with the consensus forecast, but the composition of that growth and the sizeable upward revisions to the gains in the two... 11th March 2011 · 1 min read
Asia Economics Update Bank Negara shifts back into tightening mode Malaysia’s central bank (BNM) left its policy rate unchanged at 2.75% today, in line with the consensus view but contrary to our expectations of a hike. Nonetheless, BNM resumed policy tightening by... 11th March 2011 · 1 min read
Canada Data Response Labour Force Survey (Feb.) February’s employment report was lukewarm, with net employment rising by 15,100. Nonetheless, job creation over the last three months suggests that the pace of underlying economic growth is improving... 11th March 2011 · 1 min read
Latin America Economics Update Concerns over inflation to push Peruvian rates higher Last night the Central Reserve Bank of Peru (BCRP) hiked interest rates by 25bps to 3.75%, as expected. With the outlook for inflation deteriorating interest rates look set to rise further over the... 11th March 2011 · 1 min read
Japan Economics Update Earthquake increases chances of fiscal crisis The consequences of the major earthquake and tsunami that hit Miyagi Prefecture and other areas in north-eastern Japan today are not yet clear and the impact on local people is of course foremost in... 11th March 2011 · 1 min read
Europe Data Response Italian & Portuguese GDP (Breakdown, Q4) The Italian and Portuguese Q4 GDP expenditure breakdowns add to evidence that the divergence in economic growth between the northern and southern euro-zone economies is unlikely to narrow... 11th March 2011 · 1 min read
Asia Economics Update New Zealand's cash rate to rise sooner than markets expect The Reserve Bank of New Zealand (RBNZ) yesterday cut its cash rate by 50bp to 2.5% in response to last month’s devastating earthquake in Christchurch. The RBNZ made it clear that it intends to stay in... 11th March 2011 · 1 min read
UK Data Response UK Producer Prices (Feb.) February’s producer prices figures revealed another sharp rise in firms’ costs. But they also provided a bit of reassurance that consumer price inflation should still fall sharply next year. 11th March 2011 · 1 min read
China Economics Update Retail sales slowdown highlights challenge of rebalancing With the usual volatility around Chinese New Year and revisions to the way key data are collected clouding the view, about the only clear picture that emerges from China’s latest data is that retail... 11th March 2011 · 1 min read
