Europe Economics Update Sedlabanki cuts rates but may tighten next year Iceland’s central bank unexpectedly cut its main interest rate to 5.75% today, the first change in two years, as it lowered its inflation and growth forecasts. But we think it may have to reverse... 5th November 2014 · 1 min read
Europe Economics Update Sedlabanki cuts rates but may tighten next year Iceland’s central bank unexpectedly cut its main interest rate to 5.75% today, the first change in two years, as it lowered its inflation and growth forecasts. But we think it may have to reverse... 5th November 2014 · 1 min read
Europe Economics Update What can the ECB learn from the Bank of Japan? While the extension of the Bank of Japan’s quantitative easing programme may not deliver a sharp upturn in the Japanese economy, the signal it has sent regarding the future stance of Japanese monetary... 4th November 2014 · 1 min read
Europe Economics Update Precautionary credit line may not be sufficient for Greece The Greek Government appears to have backtracked from plans of a “clean exit” from its EU bail-out programme in December, but it might still be over-estimating the extent to which it can finance... 4th November 2014 · 1 min read
Europe Economics Update Gold referendum highlights limits of SNB policy Fears that a referendum over the Swiss National Bank’s (SNB’s) gold holdings might prevent the Bank defending its ceiling for the Swiss franc may be overblown. But the referendum highlights political... 4th November 2014 · 1 min read
Nordic & Swiss Economics Update Gold referendum highlights limits of SNB policy Fears that a referendum over the Swiss National Bank’s (SNB’s) gold holdings might prevent the Bank defending its ceiling for the Swiss franc may be overblown. But the referendum highlights political... 4th November 2014 · 1 min read
Europe Economics Update Euro-zone Fiscal Monitor (Oct.) All peripheral economies narrowed their budget deficits in September but France and Italy submitted draft budgets that flouted EU fiscal rules. 3rd November 2014 · 1 min read
Europe Economics Update Italian labour market reform won’t transform economy The Italian Prime Minister’s package of labour market reforms is a step in the right direction, but reform efforts are moving too slowly to ensure a meaningful reduction in unemployment or improvement... 31st October 2014 · 1 min read
Europe Economics Update Riksbank cuts rates to zero but deflation threat persists Sweden’s central bank today stepped up its fight against deflation, cutting its main policy rate to a record low of 0% and pushing back the date at which it first expects to raise rates. We think that... 28th October 2014 · 1 min read
Nordic & Swiss Economics Update Riksbank cuts rates to zero but deflation threat persists Sweden’s central bank today stepped up its fight against deflation, cutting its main policy rate to a record low of 0% and pushing back the date at which it first expects to raise rates. We think that... 28th October 2014 · 1 min read
Europe Economics Update Stress tests offer some relief, but not for Italy On the whole, the results of Europe’s bank stress tests were positive, implying that the heavy drag that falls in bank lending have exerted on the euro-zone economy may be set to ease. But poor... 27th October 2014 · 1 min read
Europe Economics Update Euro-zone Monetary Indicators Monitor (Sep.) September’s euro-zone monetary data showed further signs of improvement but with lending growth still negative and, given the need for some of the weakest banks to raise further capital, the sector is... 27th October 2014 · 1 min read
Europe Economics Update Why has the euro-zone slowed so sharply? The surprisingly sharp slowdown in the euro-zone economy over recent months may be partly the result of temporary negative factors such as the Ukraine crisis. But the underlying picture is still one... 23rd October 2014 · 1 min read
Europe Economics Update ECB takes further steps towards QE Rumours that the ECB is considering corporate bond purchases suggest that the Bank is edging further into the realms of quantitative easing. But we think that it will need to buy sovereign bonds as... 21st October 2014 · 1 min read
Europe Economics Update Stress tests won’t revive the banking sector overnight The euro-zone’s latest bank stress tests may be more credible than previous versions and hence do more to restore confidence in the region’s banking sector. But the corrective measures required in... 21st October 2014 · 1 min read
Europe Economics Update Will Greece trigger another crisis? While there are some comforting distinctions between the recent jump in Greek bond yields and that which triggered the euro-zone crisis back in 2010, the scale of the economic challenges still facing... 17th October 2014 · 1 min read
