Nordic & Swiss Economics Update Swedish Riksbank hikes rates and signals more to come The Swedish Riksbank once again raised interest rates and reiterated that it expects more to come.While we expect further hikes in the short term, we think that the pace of monetary tightening willbe... 5th July 2011 · 1 min read
Europe Data Response Euro-zone Flash CPI & German Unemployment (Jun.) June’s euro-zone CPI inflation figures are likely to prompt the ECB to maintain a pretty hawkish tone at next week’s press conference. 1st July 2011 · 1 min read
Canada Data Response Consumer Price Index (May) The increase in the headline CPI inflation rate to an eight-year high of 3.7% in May, from 3.3%, and the pick up in the core inflation rate to a seven-month high of 1.8%, from 1.6%, will no doubt... 30th June 2011 · 1 min read
Europe Data Response German Flash CPI (Jun.) June’s CPI figures suggest that German inflation remains reasonably well contained. But this is unlikely to stop the ECB from increasing interest rates again next week. 29th June 2011 · 1 min read
US Economics Focus What explains the rebound in core inflation? The conventional wisdom is that the rebound in core inflation mainly reflects a permanent rebound in the growth rate of housing costs. However, the pick up over the past few months is more to do with... 24th June 2011 · 1 min read
Emerging Europe Economics Update Inflation still driven by food and energy Headline inflation has remained at uncomfortably high levels across the region, at the same time as activity in industrial and service sectors is beginning to wane. This underscores the policy dilemma... 17th June 2011 · 1 min read
Europe Data Response Euro-zone CPI (Final, May) & Employment (Q1) May’s small fall in euro-zone CPI inflation is unlikely to prevent the ECB from hiking interest rates again in July. But with Q1’s weak employment figures supporting our view that domestic demand will... 17th June 2011 · 1 min read
Nordic & Swiss Economics Update SNB strikes a dovish tone As expected, the Swiss National Bank left its interest rate target unchanged at today’s meeting. With the Bank striking a slightly more downbeat tone in its statement and the Swiss franc’s strength... 16th June 2011 · 1 min read
Emerging Europe Economics Update Polish inflation - not yet time to worry The surprise acceleration of Polish inflation in May confirm the buoyancy of the economy but reflects mainly the impact of three temporary factors – global food and fuel price inflation and a rise in... 16th June 2011 · 1 min read
US Data Response Retail Sales & Producer Prices (May) Today's data releases brought more signs of mounting economic weakness and evidence that the upward pressure on inflation is beginning to fade. 15th June 2011 · 1 min read
UK Data Response Consumer Prices (May) May’s unchanged CPI inflation rate represents just a temporary pause in an upward trend which could take inflation to 5.5% or above. But medium-term influences still point to sharp falls in inflation... 15th June 2011 · 1 min read
China Economics Update People's Bank still in tightening mode The People’s Bank of China has signalled that it remains in tightening mode by responding to the latest high inflation numbers with a reserve ratio hike. 15th June 2011 · 1 min read
Global Economics Focus Does inflation offer a way out of the debt crisis? Deliberately embracing higher inflation as a way out of the sovereign debt crisis could have disastrous consequences. Instead, for most advanced countries, wherever it is feasible, a combination of... 14th June 2011 · 1 min read
UK Data Response Industrial Production (Apr.) & Producer Prices (May) April’s industrial production figures were heavily distorted by one-off factors and were therefore not nearly as bad as they look. Still, with the trend in activity slowing and cost pressures still... 11th June 2011 · 1 min read
Nordic & Swiss Economics Update Economic clouds still hanging over Iceland The dust clouds may have cleared but economic gloom continues to hang over Iceland. While the economy returned to growth in Q1, conditions for consumers remain grim and large risks remain over plans... 8th June 2011 · 1 min read
