Asia Economics Update Rates to remain on hold in Sri Lanka The Central Bank of Sri Lanka (CBSL) kept its policy rates on hold at today’s meeting, as expected. Inflation has ticked up in recent months but is unlikely to become a threat any time soon. For this... 19th October 2010 · 1 min read
US Economics Update More dovish Bank of Canada may yet ease again (Oct 10) The Bank of Canada appears some way from further monetary tightening. Economic conditions would have to improve substantially and by enough to offset the increasing downside risks to future inflation... 19th October 2010 · 1 min read
China Economics Update What is behind China's rate hike? With its surprise decision to raise benchmark interest rates, the People’s Bank of China is giving a strong signal to banks to rein in lending after the surge of the last few weeks. The immediate... 19th 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
UK Commercial Property Update Industrial rental values likely to fall further The dataflow on the industrial sector of the economy generally remains a little patchy but the CBI’s employment intentions balance nevertheless still points to a strong rebound in industrial property... 19th October 2010 · 1 min read
Europe Data Response German ZEW (Oct.) October’s drop in German ZEW investor sentiment highlighted understandable concerns that the euro-zone’s growth engine might soon stall. 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
Europe Economics Update Housing revival unlikely to drive a consumer recovery There are early signs of a revival in euro-zone housing markets. Even in the periphery, the housing market seems to have passed its worst, which on the face of it, may provide some relief to consumers... 19th October 2010 · 1 min read
UK Economics Weekly Spending Review to deepen the gloom This week’s long-awaited Spending Review will do little to alter the macro-economic landscape. We already know the overall spending plans for the next five years and, while some changes to the totals... 18th October 2010 · 1 min read
UK Housing Market Outlook The lack of mortgage credit will weigh on house prices in 2011 (Q4 2010) The combination of a fading economic recovery, renewed rises in unemployment and a continued shortage of mortgage credit all suggest that there is little prospect of a meaningful recovery in housing... 18th October 2010 · 1 min read
US Data Response Industrial Production (Sep 10) Manufacturing output contracted by 0.2% m/m in September, illustrating that the previously robust recovery in the factory sector is definitely behind us now and this could even be the start of a... 18th October 2010 · 1 min read
Latin America Economics Update Learning to live with higher capital inflows Policymakers across the region are facing a tricky balancing act. On the one hand, capital inflows are likely to remain healthy over the coming months. Additional liquidity generated by further policy... 18th October 2010 · 1 min read
China Economics Update Rapid renminbi rise will not be sustained China is again responding to foreign pressure with a surge in the renminbi. But a coming slowdown in exports, a desire to limit the predictability of the renminbi’s rise and, possibly, a rebound of... 18th October 2010 · 1 min read
Japan Data Response Tertiary Activity (Aug) The smaller-than-expected decline in the tertiary activity index suggests that the recovery in Japan’s service sector gathered pace in the third quarter despite the strength of the yen. 18th October 2010 · 1 min read
