Emerging Europe Economics Update What does the market turmoil mean for policy? In the wake of the recent market turmoil, the immediate priority for policymakers is to stabilise the region’s currencies. But if required central banks are more likely to rely on verbal or direct... 13th August 2011 · 1 min read
Latin America Economics Update Another pause for Peru as policymakers take shelter Peru’s Central Bank (BCRP) kept interest rates at 4.25% for the third successive month last night as policymakers wait to see if the worst of the global market storm has passed over. In the very near... 13th August 2011 · 1 min read
Latin America Economics Update Mexico: Interest rates on hold until 2013? The latest Mexican Inflation Report confirms that policymakers are in no mood to begin monetary tightening. The recent global market turmoil underlines that the downside risks to Mexican growth that... 12th August 2011 · 1 min read
Middle East & North Africa Data Response Egypt Consumer Prices (Jul.) July’s data show that a slowdown in food inflation helped to ease overall consumer price pressures in Egypt. But core inflation (which is the Central Bank’s preferred measure for setting interest... 11th August 2011 · 1 min read
UK Data Response Bank of England Inflation Report (Aug.) July’s consumer prices figures confirmed that June’s surprise drop in CPI inflation was just a blip. But the fact that the rise last month was driven by a pick-up in the core rate does not mean that... 11th August 2011 · 1 min read
China Economics Update Inflation rises, but economic activity is weak China's consumer-price inflation remained high in July, while activity data suggest that growth was sluggish at the start of the third quarter. On the face of it, this poses a dilemma for China's... 10th August 2011 · 1 min read
Latin America Economics Update Chile’s slowing inflation makes another pause probable Slowing inflation in Chile raises the probability of a second successive pause at this month’s monetary policy meeting. What’s more, a weakening external backdrop will make policymakers more reluctant... 9th August 2011 · 1 min read
UK Economics Weekly Market mayhem sets gloomy backdrop for Inflation Report The mayhem in the markets last week has set a gloomy backdrop for the Bank of England’s Inflation Report published this week. 9th August 2011 · 1 min read
Emerging Europe Economics Update Turkey’s monetary policy experiment gets risky The decision by the Central Bank of Turkey to raise its overnight borrowing rate and cut its benchmark 7-day repo rate could do more harm than good: the rise in the overnight rate risks attracting... 5th August 2011 · 1 min read
UK Economics Update Struggling recovery needs low interest rates The MPC’s decision to re-launch its quantitative easing programme today confirms that the Committee finally recognises that the major threat to the UK is renewed recession, not inflation. But previous... 5th August 2011 · 1 min read
Asia Economics Focus Should we be worried about sovereign debt in Asia? Emerging Asia is not in any imminent danger of a sovereign-debt crisis: debt levels in most countries are low, while strong growth makes it easier to finance debt burdens. However, another sharp... 4th August 2011 · 1 min read
China Economics Update Inflation Monitor (Jul.) Pork prices fell in the second half of July. It is too soon to sound the all-clear. But given that consumer price inflation in everything except pork was stable over the first half of the year, this... 4th August 2011 · 1 min read
Europe Data Response Euro-zone Producer Prices (Jun.) The continued slowdown in producer price inflation, combined with July’s unexpected fall in headline consumer price inflation, supports our view that the ECB will probably keep interest rates on hold... 3rd August 2011 · 1 min read
Europe Data Response Euro-zone Flash CPI (Jul.) July’s euro-zone flash consumer prices figures came as something of a pleasant surprise and provide some support for our view that the ECB may not raise interest rates again over the coming months. 30th July 2011 · 1 min read
China Economics Update How would China react to a US downgrade? China may be the US government’s largest foreign creditor but it has no better option than to hope for the best and try to calm any market jitters in the event of a US downgrade. 29th July 2011 · 1 min read
Asia Economics Update New Zealand’s “insurance cut” to be reversed in September The Reserve Bank of New Zealand (RBNZ) has signalled that its policy rate will soon be raised from a post-earthquake emergency level, provided its worst fears for the global economy do not materialise... 29th July 2011 · 1 min read
