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
Europe Economics Update Euro-zone lagging behind on support for banks After the UK Government’s latest announcement of additional measures to support banks, policy in the euro-zone is lagging behind again. We hope that extra support will be announced in time, but the... 22nd January 2009 · 1 min read
Europe Economics Update ECB drags its heels While the ECB cut interest rates as expected today, it’s warnings that it will not reduce them again at its next meeting confirm that it will continue to drag its heels compared to other central banks... 15th January 2009 · 1 min read
Europe Economics Update Falling house prices add to the gloom in Spain The latest news from Spain shows that the housing market downturn is gaining momentum as the economy enters recession. Further sharp falls over the coming quarters are inevitable and we expect house... 15th January 2009 · 1 min read
Europe Economics Update Industrial slump points to deeper and longer recession Hopes that the euro-zone’s relative lack of indebtedness would allow it to fare comparatively well in the global downturn have been dashed by the slump in the industrial sector and insufficient policy... 13th January 2009 · 1 min read
Europe Economics Update Can the ECB engage in quantitative easing? The latest signal from the US Federal Reserve that it plans to adopt an even more aggressive policy of quantitative easing has fuelled speculation over what other central banks like the ECB might do... 18th December 2008 · 1 min read
Europe Economics Update Is criticism of the German Government warranted? The German Government has come under attack from the press and other European leaders for its apparent reluctance to provide its ailing economy with a fiscal boost. In fact, it has done more than is... 11th December 2008 · 1 min read
Europe Economics Update SNB already considering zero interest rates After today’s expected 50bp interest rate cut, the bottom end of the Swiss National Bank’s target range for three-month interest rates has already hit zero. For now, the Bank will target a rate of... 11th December 2008 · 1 min read
Europe Economics Update ECB steps up the pace The ECB’s 75bp interest rate cut to 2.5% is an encouraging sign that the Bank recognises the severity of the economic downturn after earlier hints that a more modest reduction was likely. Although... 4th December 2008 · 1 min read
Europe Economics Update Swedish interest rates plunge by 1.75% The decision by the Swedish Riksbank to slash interest rates by 175 basis points highlights the degree to which the economic outlook has deteriorated. With the downturn set to worsen next year... 4th December 2008 · 1 min read
Nordic & Swiss Economics Update Swedish interest rates plunge by 1.75% The decision by the Swedish Riksbank to slash interest rates by 175 basis points highlights the degree to which the economic outlook has deteriorated. With the downturn set to worsen next year... 4th December 2008 · 1 min read
Europe Economics Update Economic fundamentals to keep bond spreads elevated The recent surge in the spread between peripheral euro-zone government bond yields and the equivalent German yield is to a large part down to rising risk aversion in the financial markets. But the... 2nd December 2008 · 1 min read
Europe Economics Update Italian fiscal plan not all that it’s cracked up to be The Italian Government’s announcement of an economic package to help reinvigorate the economy suggests that Prime Minister Berlusconi may have reverted to his free spending ways. But the package looks... 28th November 2008 · 1 min read
Europe Economics Update Latest Spanish fiscal package won't save the day The latest Spanish fiscal package shows that the Government is willing to pull out all the stops to prevent a steep economic contraction. But with the effects on the economy of the housing market... 27th November 2008 · 1 min read
Europe Economics Update EC’s fiscal stimulus will not save the economy The European Commission’s call for a fiscal stimulus of 1.5% of GDP makes little difference to the economic outlook. Indeed, some European governments will argue that they have already done enough... 26th November 2008 · 1 min read
