Poor inflation data intensifies pressure on the ECB

Feb 29, 2016 16:38 pm UTC| Commentary Central Banks

Data released earlier today showed euro area headline inflation fell back in February to a one-year low of -0.2% y/y, while core inflation slowed to 0.7% from 1.0%. Februarys drop in euro-zone CPI inflation back into...

Potential credit problem in UK could see some macroprudential controls from BoE FPC

Feb 29, 2016 15:44 pm UTC| Commentary Central Banks

Consumer credit in UK is growing at over 9% 3mth pa, a pace not seen since 2005 and notably faster than the pace immediately before the financial crisis broke. Mortgage borrowing, the much larger component of household...

Currency War Series

Strong job growth reduces the chances of further monetary easing from BoK

Feb 29, 2016 14:45 pm UTC| Commentary Central Banks

Koreas recent strong job growth has been led by the manufacturing sector, contradicting the view that manufacturing jobs will likely decline as a country advances from an emerging to a developed economy. The pickup in...

Sustained downside pressures on EUR/CHF could see SNB action ahead of its 17 March meet

Feb 29, 2016 10:16 am UTC| Insights & Views Central Banks

As we head into policy meetings from the ECB and SNB scheduled on 12 March and 17 March respectively, with the rates market pricing 12bp cuts for both central banks, we can expect some EUR/CHF downside if ECB cuts but SNB...

Fed Hike Aftermath Series

US economy unlikely to enter deflationary period, Fed likely to hike rates two more times in 2016

Feb 29, 2016 05:54 am UTC| Commentary Central Banks

The stronger consumer spending and income report for January is very re-assuring for the US economy. Consumer spending recorded a moderate growth during the end of 2015 and is off to the races in 2016 with real consumption...

G20 summit unlikely to bring about decisive change in central banks' strategy

Feb 26, 2016 14:35 pm UTC| Commentary Central Banks

G20 Finance Ministers and central bankers are meeting in Shanghai today to discuss among other things the turbulence in the stock markets, the notable deterioration in the global economic outlook and of course the...

Currency War Series

Sluggish credit growth defends ECB's action for further easing and even more negative interest rates

Feb 26, 2016 11:11 am UTC| Commentary Central Banks

Euro-zone Monetary Indicators released on Thursday showed that bank lending in the Euro area was not much different compared to the earlier months: growth was positive but still weak. Data showed that euro-zone broad money...