New loans picked up on PBoC’s monetary easing

Oct 16, 2015 07:21 am UTC| Commentary Central Banks

Chinas financial institutions extended trn new loans in September, up from CNY809bn in the prior month and higher than market expectations. Notably, this is the highest loan extension in September in record, suggesting...

Czech's CB chief hints at possible extension of FX cap

Oct 16, 2015 07:16 am UTC| Commentary Central Banks

EUR-CZK has been drifting lower in recent days again, falling below 27.10 this week; this is a reflection of the general EM rally; CZK has not outperformed PLN or HUF. EUR-CZK is already close to its official 27.00 target,...

U.S. headline CPI to post around 2% y/y early next year

Oct 16, 2015 07:08 am UTC| Commentary

The U.S. core CPI inflation rose to 1.9% y/y in September, up from 1.8% in August and stronger than anticipated. The stronger USD continues to put downward pressure on core inflation, mainly by driving down core goods...

Rating agencies downgrade Brazil

Oct 16, 2015 07:04 am UTC| Commentary

On 9th September the rating agency Standard Poors downgraded Brazil to junk status while the third agency Moodys has also just about maintained investment grade. However, the continued negative outlook suggests that there...

Euro area QE is here for the long haul

Oct 16, 2015 06:51 am UTC| Commentary

With weak sentiment hitting the euro area in recent weeks, ECB President Draghi will face a tricky task of managing expectations. On the one hand, he will need to continue sending a dovish message of standing ready to act...

Long term, the ECB could be forced to consider its target and new asset classes

Oct 16, 2015 06:47 am UTC| Commentary Central Banks

As discussed in our last preview, in a scenario of prolonged undershooting of the inflation, the ECB will need to be open to the idea of taking a longer time to meet the target or reformulating the target. Moreover, in...

A war of attrition in the fight against Euro area's secular stagnation

Oct 16, 2015 06:46 am UTC| Commentary

With the IMF again reducing its global forecasts recently, although still believing in a gradual recovery, the ECBs Governing Council is bound to worry over its own forecasts for growth and inflation. ECB staffs investment...