UK Economics Update Mortgage interest rates heading to 3% Today’s interest rate cut, from 4.5% to 3%, marks only the early stages of a phase of aggressive monetary easing which will ultimately take base rates to an all-time low of 1%. Mortgage interest rates... 6th November 2008 · 1 min read
Asia Economics Focus Is trouble lurking within Japan’s financial system? The Japanese financial system remains in relatively good shape. Despite the erosion of bank capital due to sliding stock markets, a number of factors suggest that there are no major risks to the... 6th November 2008 · 1 min read
Japan Economics Focus Is trouble lurking within Japan’s financial system? The Japanese financial system remains in relatively good shape. Despite the erosion of bank capital due to sliding stock markets, a number of factors suggest that there are no major risks to the... 6th November 2008 · 1 min read
UK Economics Update How much will payment protection insurance cost insurers? Despite the write-downs already made, the financial sector has yet to face billions of pounds of further losses associated with the downturn in the economy. Our forecast that unemployment will... 4th November 2008 · 1 min read
Asia Economics Update China abandons credit quotas to support growth The quiet lifting of credit quotas, confirmed in Chinese media over the weekend, is arguably the most significant step taken so far by the authorities as they attempt to limit China’s economic... 4th November 2008 · 1 min read
China Economics Update China abandons credit quotas to support growth The quiet lifting of credit quotas, confirmed in Chinese media over the weekend, is arguably the most significant step taken so far by the authorities as they attempt to limit China’s economic... 4th November 2008 · 1 min read
UK Economics Update Financial Stability Report highlights threat to bank lending The Bank of England’s latest Financial Stability Report (FSR) supports our view that the Government’s recapitalisation of the banking system is unlikely to head off a sharp slowdown in bank lending... 28th October 2008 · 1 min read
Asia Economics Update Korean bailout positive but won't prevent slowdown The announcement of a massive $130bn (13% of GDP) liquidity support package by the Korean authorities over the weekend should calm the markets and boost the currency in the short run, but it won’t... 20th October 2008 · 1 min read
US Economics Weekly Treasury will need to spend even more to prop up banks 20th October 2008 · 1 min read
Asia Economics Update Capital outflows now affecting China too The latest data suggest that investors have been pulling money out of China in recent weeks. After dealing with hot inflows of nearly $200bn in the first half of 2008, officials will be glad for the... 14th October 2008 · 1 min read
China Economics Update Capital outflows now affecting China too The latest data suggest that investors have been pulling money out of China in recent weeks. After dealing with hot inflows of nearly $200bn in the first half of 2008, officials will be glad for the... 14th October 2008 · 1 min read
Europe Economics Update Euro-zone rescue plan won’t halt the slowdown The announcement of a co-ordinated framework to kick-start interbank lending in the euro-zone and boost banks’ tier one capital has helped equity markets and the euro to rally. But we doubt that these... 13th October 2008 · 1 min read
UK Economics Update Recapitalisation unlikely to revitalise bank lending With banks’ balance sheets under pressure, UK bank lending is set to rise more slowly, if not fall outright. This will have significant adverse effects on the UK economy, which may already be in... 13th October 2008 · 1 min read
