Emerging Europe Economics Update Policy responses: the good, the bad and the ugly A worrying divergence is emerging in the policy response across the region. Policymakers in Central Europe imposed lockdown measures early which have succeeded in containing the outbreak. And the... 5th May 2020 · 4 mins read
Europe Economics Update German court ruling highlights future risks to the euro The German constitutional court ruling today will not bring the ECB’s asset purchase programme to a sudden end. But it highlights that a successful legal challenge to the its policies in the future... 5th May 2020 · 4 mins read
Asia Economics Update Further rate cuts likely in Malaysia Bank Negara Malaysia (BNM) today cut its policy rate from 2.50% to 2.00%, and with the outlook for growth very poor, we think the central bank will ease policy again in the coming months. 5th May 2020 · 3 mins read
Australia & New Zealand Economics Update Australia - Interest rates to remain close to 0% for years The Reserve Bank of Australia (RBA) today left its interest rate targets unchanged but an easing of collateral requirements should provide some support to corporate bond markets. While the financial... 5th May 2020 · 3 mins read
Canada Economics Weekly Bank welcomes its newest asset The government confirmed this week that former Senior Deputy Governor Tiff Macklem will take the helm from Governor Stephen Poloz in June. We doubt the change will materially affect the way the Bank... 1st May 2020 · 6 mins read
Bank of Canada Governor Announcement This Update was originally sent to clients as a Rapid Response immediately after the Bank of Canada’s announcement on 1st May. The confirmation that Tiff Macklem will take over from Governor Stephen... 1st May 2020 · 2 mins read
Nordic & Swiss Economics Weekly Surveys at their limits; Norges Bank to cut to zero While the KOF Economic Barometer registered its largest monthly fall on record in April, like many other indicators elsewhere, it is struggling to capture the unprecedented scale of damage wreaked by... 1st May 2020 · 6 mins read
Latin America Economics Update Colombia cuts rates, more easing in store The statement accompanying the Colombian central bank’s decision to cut the policy rate by 50bp to 3.25% left the door open for more easing. Given the scale of the economic hit that we expect, the... 1st May 2020 · 3 mins read
Nordic & Swiss Central Bank Watch Norges Bank set to continue its easing cycle next week Given the toxic combination of Covid-related disruption and precipitous plunge in oil prices, we think that the Norges Bank’s easing cycle has further to run. Whereas financial markets are pricing in... 1st May 2020 · 5 mins read
BoE Watch More QE may be coming The Monetary Policy Committee will probably use its policy announcement on Thursday 7th May to send a strong signal that it will continue to stand behind the gilt market. It may even extend... 30th April 2020 · 9 mins read
Europe Economics Update ECB dragging feet over sovereign support The ECB’s failure to step up its asset purchase programmes at today’s monetary policy meeting will leave investors with nagging doubts about its commitment to underwrite government borrowing during... 30th April 2020 · 3 mins read
Australia & New Zealand Chart Pack Easing lockdowns will boost growth The strict lockdowns have resulted in a massive drop in demand, but they have also been successful at ‘flattening the curve’ or reducing the number of new daily cases of Covid-19 in both countries... 30th April 2020 · 10 mins read
US Economics Update Fed keeping all options on the table Since the Fed had already gone all-in on its monetary policy stimulus, it was little surprise that there no major policy announcements in today’s statement. Over the next few months the Fed will... 29th April 2020 · 3 mins read
Emerging Europe Economics Update Hungary’s MPC targets the yield curve Hungary’s central bank didn’t disappoint at today’s MPC meeting in announcing its bond purchase programme and it’s clear that policymakers have shifted their attention from keeping short-term rates... 28th April 2020 · 3 mins read
Nordic & Swiss Economics Update Riksbank signals rate cut in the pipeline This morning’s decision by the Riksbank to leave its repo rate and crisis-related policy settings unchanged did not come as a big surprise. Nonetheless, it kept the door open for a rate cut, and we... 28th April 2020 · 3 mins read
Europe Data Response ECB Bank Lending Survey (Q1 2020) The Bank Lending Survey highlights the fact that demand has fallen much further in Italy and Spain than elsewhere. But it also suggests that loan guarantees and the ECB’s cheap loans to banks are... 28th April 2020 · 2 mins read
