Monetary and fiscal policymakers still have work to do The Bank of Canada announced further credit easing measures this week and the government’s will expand its fiscal package to $109 bn, from $82 bn, but there are still widespread signs of stress in... 26th March 2020 · 4 mins read
UK Economics Update Bank will do more if financial stresses worsen If the Bank of England is going to build on the unprecedented policy support it has unleashed in recent weeks to counteract the economic effects of the coronavirus, it won’t be because of concerns... 26th March 2020 · 3 mins read
RBI Watch Stepping up the coronavirus response The RBI has so far taken only piecemeal steps in its response the coronavirus outbreak. But with the virus now spreading rapidly in India and with containment measures set to take an enormous economic... 26th March 2020 · 6 mins read
Europe Economics Update ESM help welcome but more will be needed It now seems likely that euro-zone policymakers will exploit the European Stability Mechanism’s lending capacity to offer financial help to all member states to tackle the hit from the coronavirus... 25th March 2020 · 3 mins read
India Economics Update Growth to slump to a four-decade low in 2020 The measures to contain the spread of the coronavirus announced by PM Modi last night will be hard to fully implement but will still have severe economic repercussions. We now expect the economy to... 25th March 2020 · 3 mins read
Emerging Europe Economics Update Hungary announces new liquidity-providing tools Hungary’s central bank announced a range of measures to increase liquidity in the banking system at today’s MPC meeting. But the economic effects of the coronavirus are likely to be much more damaging... 24th March 2020 · 4 mins read
US Economics Update Fed turns the easing up to 11 This Update was originally sent to clients as a Rapid Response immediately after the Fed’s policy statement on 23rd March. The Fed’s expansion of its open-ended QE, together with new measures to lend... 24th March 2020 · 2 mins read
Global Economics Focus Is now the time for a helicopter drop? Central banks are already facilitating fiscal packages in various ways. But with the fiscal costs of the coronavirus likely to rise much further, policymakers might consider explicitly financing them... 24th March 2020 · 16 mins read
Australia & New Zealand Economics Update New Zealand - RBNZ unleashes full QE firepower New Zealand is set to enter a near-total lockdown this week which will cause economic activity to all but stop. The RBNZ launched quantitative easing today, but we think that more monetary stimulus... 23rd March 2020 · 3 mins read
Europe Economics Update ESM could be a game-changer While the ECB’s extra €750bn in bond purchases has reduced financial market stress, governments also need to deliver a large fiscal response without triggering a fresh sovereign debt crisis. In our... 20th March 2020 · 6 mins read
Asia Economics Update Emergency rate cut in Thailand, sharp downturn looms With the growth outlook deteriorating rapidly, the Bank of Thailand today became the sixth central bank in the region to cut interest rates this week. The 25bp emergency rate cut takes the policy rate... 20th March 2020 · 2 mins read
BoE Watch Bank may build on its huge stimulus package The decisive action taken by the Bank of England in the past two weeks has succeeded in easing some stresses in the financial markets. But if financial conditions continue to tighten between now and... 20th March 2020 · 6 mins read
Nordic & Swiss Economics Weekly NOK carnage; Danish rate hike! The Norwegian krone has endured an extraordinary week and will be vulnerable to further falls until market sentiment improves. Nonetheless, if our forecast for oil prices to start to rise later this... 20th March 2020 · 4 mins read
Emerging Europe Economics Update Russia’s central bank likely to lower rates soon The Russian central bank’s decision to keep the policy rate unchanged at 6.00% today made it one of the few major central banks that has yet to cut rates to support the economy in response to the... 20th March 2020 · 3 mins read
Europe Economics Weekly ECB’s next challenge is to raise its issuer limits Following the huge expansion of its asset purchases this week, the ECB’s will still need to raise the issuer limits on its bond holdings. We think it will eventually do so, providing a credible... 20th March 2020 · 6 mins read
India Economics Weekly Policymakers hold back, rupee drops to record low Both Prime Minister Modi and RBI Governor Das took cautious steps in their responses to the coronavirus outbreak this week, but left the door open for more aggressive measures. With domestic virus... 20th March 2020 · 3 mins read
