Australia & New Zealand Economics Weekly Massive policy response to deteriorating outlook The draconian measures in place in Australia to curb the spread of the virus are weighing heavily on economic activity. We now expect output to decline by 2% in 2020 and the unemployment rate to rise... 20th March 2020 · 4 mins read
UK Economics Update BoE forced into more emergency action by market stress The big package of measures announced by the Bank of England today in its second emergency meeting in just over a week is designed to ease the stress in the financial markets and to support the... 19th March 2020 · 3 mins read
US Economics Update Fiscal support needed, but Fed still has more to do The Fed’s revival of financial crisis-era programs and a huge ramp-up in the pace of its open-ended Treasury purchases in recent days could help to stem some of the bleeding in financial markets. But... 19th March 2020 · 4 mins read
Africa Economics Update South Africa: SARB makes strong response South African policymakers appear to have decided that the current grave economic situation requires a bold response, and have moved away from their traditional hawkishness. We expect that they will... 19th March 2020 · 3 mins read
Asia Economics Update Bank Indonesia will need to keep one eye on the rupiah Bank Indonesia cut interest rates today, but the slump in the rupiah in recent days means policymakers in the country will need to act more cautiously than other central banks in the region over the... 19th March 2020 · 3 mins read
Asia Economics Update Taiwan cuts rates, more easing likely In response to the rapidly worsening outlook for the economy, Taiwan’s central bank (CBC) today cut its key policy rate today by 25bps to 1.125% and announced other measures to support the economy... 19th March 2020 · 3 mins read
Nordic & Swiss Economics Update SNB does what it can with its little ammunition left While the Swiss National Bank left its key policy rate on hold at -0.75% this morning, it made all the right noises by making its exemptions to the banking sector from negative interest rates even... 19th March 2020 · 3 mins read
Latin America Economics Update BCB highlights limited space for policy response The Brazilian central bank’s (BCB’s) statement accompanying last night’s decision to cut the Selic rate by 50bp was surprisingly cautious and suggested that further easing isn’t on the cards. With the... 19th March 2020 · 3 mins read
Europe Economics Update Additional €750bn of QE will not be ECB’s last move The ECB announced late yesterday evening a new €750bn programme of bond purchases which is intended to contain borrowing costs for southern economies. This gives it a lot more firepower which should... 19th March 2020 · 3 mins read
Asia Economics Update Philippines: more easing to come from the BSP The central bank in the Philippines is likely to ease further in the months ahead after opting to cut its main policy rate by 50bps today. The BSP has not yet introduced loan programmes or targeted... 19th March 2020 · 3 mins read
India Chart Pack Virus and Yes Bank debacle dash hopes of recovery It has been a dreadful few weeks for India’s economy. This started with the release of GDP data showing that growth in Q4 slowed to its weakest pace since 2013. And hopes of a near-term recovery have... 19th March 2020 · 10 mins read
Australia & New Zealand Economics Update Australia - RBA may have to expand asset purchases further The RBA today announced a comprehensive set of measures to combat the disruptions to economic activity and financial markets caused by the coronavirus outbreak. If credit markets remain impaired for... 19th March 2020 · 3 mins read
Africa Economics Update S. Africa: Worsening outbreak will prompt SARB to cut Activity data from January suggest that the economy was already contracting before the coronavirus reached South Africa. The outbreak will add to economic headwinds. Policymakers are likely to spring... 18th March 2020 · 2 mins read
DM Markets Chart Pack Market mayhem may get worse before it gets better The turmoil in financial markets caused by the global spread of COVID-19 shows little sign of abating, despite policymakers’ efforts to contain the fallout. Our view remains that until evidence... 17th March 2020 · 7 mins read
Asia Economics Update Pakistan slashes rates, further loosening to come In response to the rapidly worsening outlook for the economy, Pakistan’s central bank (SBP) today slashed its key policy rate by 75bp to 12.5%. With growth likely to slow sharply this year and... 17th March 2020 · 3 mins read
UK Economics Update What more can the Bank of England do? The Bank of England can’t prevent the economy from falling into recession. But like the Fed, we think it will soon throw everything in its policy arsenal at the coronavirus crisis to try to prevent... 17th March 2020 · 4 mins read
