Europe Economics Weekly Signs of economic weakness, rates to peak at 3.75% Hard data and surveys released this week suggests to us that although the euro-zone economy may again avoid a contraction in Q2, it will remain very weak. Otherwise, we have lowered our forecast for... 5th May 2023 · 5 mins read
Australia & New Zealand Economics Weekly Wage growth has yet to peak Pay hikes under Australia's private-sector enterprise bargaining agreements have gained traction. Although annualised wage growth will climb higher over the course of the year, we still expect a... 5th May 2023 · 4 mins read
Japan Economics Weekly Wage growth set to moderate as labour market cools The Bank of Japan thinks that more pronounced labour shortages at smaller firms will prompt them to eventually catch up with bigger firms by granting larger pay hikes. However, with the labour market... 5th May 2023 · 5 mins read
BoE Watch Will 4.50% be the peak? With the financial markets and other forecasters having come round to our long-held view that Bank Rate will rise to 4.50%, the real question is whether a 25 basis points rise to 4.50% at the Monetary... 4th May 2023 · 7 mins read
Europe Economics Update ECB slows the pace but the journey goes on The ECB’s decision to raise its deposit rate by 25bp to 3.25% was in line with market expectations. Meanwhile, President Lagarde’s repeated statement that the Bank is not pausing, and our view that... 4th May 2023 · 3 mins read
Global Economics Update Is food inflation finally about to turn a corner? While food CPI inflation remains very high in all major advanced economies – and especially so in Europe – we expect it to fall sharply in the coming year. Energy and labour costs have been key in... 4th May 2023 · 5 mins read
UK Economics Chart Pack Higher interest rates yet to take a big toll on activity We’ve been surprised that the rise in Bank Rate from 0.10% in November 2021 to 4.25% hasn’t triggered a contraction in GDP at the start of this year. Indeed, while higher interest rates were a further... 4th May 2023 · 10 mins read
US Data Response Intern’l Trade (Mar.), Productivity & Lab. Costs (Q1) A rebound in exports drove a sharp narrowing of the international trade deficit to a four-month low of $64.2bn in March, from $70.6bn in February, but the surveys continue to suggest that exports are... 4th May 2023 · 2 mins read
Canada Data Response International Trade (Mar.) The small rise in export volumes and slump in import volumes in March confirms that net trade improved last quarter. However, the weakness of imports means there is a risk that the preliminary... 4th May 2023 · 3 mins read
UK Data Response Money & Credit (Mar.) March’s money and credit data showed that the collapse of the US bank SVB and the takeover of Credit Suisse in early March triggered a small withdrawal of funds from the overall UK banking system... 4th May 2023 · 3 mins read
UK Commercial Property Data Response Lending to commercial property (Mar.) Even as commercial property investment has collapsed, net lending to property has been stable at close to zero since the start of the year. That suggests investors are building up war chests to snap... 4th May 2023 · 3 mins read
UK Housing Market Data Response Mortgage Lending (Mar.) The rise in mortgage approvals in March was stronger than consensus expectations, reflecting the reversal of the spike in mortgage rates since the autumn. However, we don’t think that mortgage rates... 4th May 2023 · 3 mins read
Event UK Drop-In: Will the BoE take rates above 4.5%? 1683813600 The market has finally come round to our long-standing view that Bank Rate will rise to 4.5%, with the Bank of England to likely to deliver another 25 basis point hike when it meets on 11th&
