Nordic & Swiss Economics Update Norges Bank won’t wait long to continue tightening Although the Norges Bank unexpectedly kept rates on hold at 4% today, we do not think that this represents a fundamental change in the outlook for Norwegian interest rates ahead. 25th April 2007 · 1 min read
Nordic & Swiss Economics Update Norge Bank signals significant further tightenin The Norges Bank hiked interest rates today by 25bps to 4.0%, marking a fourth consecutive move and the ninth step in the tightening cycle which began in June 2005. This also keeps rates a step ahead... 15th March 2007 · 1 min read
Europe Economics Focus The euro’s appreciation: who will suffer most? We expect the Netherlands, Ireland and Finland to feel the strongest impact on GDP growth from the euro’s appreciation. In France too, it seems possible that movements in the euro could stop the... 31st July 2006 · 1 min read
Europe Economics Focus Euro’s strength won’t curb the ECB The recent appreciation of the euro exchange rate has led to suggestions that the European Central Bank can afford to take its finger off the interest rate trigger. After all, conventional indicators... 13th July 2006 · 1 min read
UK Economics Focus Sterling’s rise eases pressure to raise rates The MPC’s latest forecasts suggested that interest rates would need to rise for the 2% inflation target to be hit. But these forecasts did not count on the recent rise in the sterling exchange rate... 30th May 2006 · 1 min read
Europe Economics Focus The rising dollar – what’s driving it and will it continue? The rebound in the dollar is looking increasingly over-extended. Shifting interest rate differentials are still the most common explanation of recent dollar moves against the euro. But these cannot... 23rd November 2005 · 1 min read
Europe Economics Focus Should Italy leave EMU? The fact that Italy’s economic under-performance is linked to the weakness of its external sector prompts the question of whether Italy should leave EMU to allow its currency to depreciate and regain... 20th September 2005 · 1 min read
UK Economics Focus Sterling on the brink The sterling exchange rate could be on the brink of a major downward adjustment. This could have positive implications for the economy if it revives the beleaguered export sector and leads to better... 12th July 2005 · 1 min read
UK Economics Focus The falling dollar’s threat to the UK The realignment of the US dollar against the world’s other major currencies has pushed the dollar/pound exchange rate to its highest levels since Black Wednesday and put a $2.00 pound within reach... 27th January 2005 · 1 min read
Europe Economics Focus Can the euro-zone economy live with a stronger euro? 18th January 2005 · 1 min read
Europe Economics Focus Will the ECB intervene to restrain the euro? The ECB has already started to express concern about the rising euro. This has led to increased speculation about when the ECB might intervene to resist further strengthening. However, we believe that... 10th November 2004 · 1 min read
UK Economic Outlook The pound at a critical juncture (Q1 04) The pound has been caught in the middle of a major realignment between the US dollar and the euro, which we believe could have significantly further to go. 30th December 2003 · 1 min read
UK Economic Outlook The Chancellor's five-point plan for Britain (Q3 03) The Treasury’s assessment of the five economic tests to determine whether the UK should adopt the euro has had an unexpected benefit – five ideas for reform, admittedly not all new, to improve the... 27th June 2003 · 1 min read
UK Economics Focus There’s life outside the euro Now that the UK has decided not to adopt the euro, attention will turn to the implications of this decision. Many studies in the last year or so have concluded that the UK has already missed out on a... 12th May 2003 · 1 min read
UK Economics Focus Lower pound should not prevent future rate cuts Today’s decision to leave interest rates unchanged presumably reflected a belief amongst MPC members that the drop in the exchange rate will do their job for them. This view is supported by some model... 8th May 2003 · 1 min read
UK Economic Outlook The five tests for euro entry: pass or fail? (Q2 03) In a few months, the Treasury will complete its assessment of the five economic tests for UK adoption of the single currency. Should the tests be passed, a referendum could follow in the autumn and we... 30th March 2003 · 1 min read
