Temporary rate cut likely form BoE
Oct 08, 2015 05:02 am UTC| Commentary
The majority of indicators show continued strength in the domestic market of U.K. economy, offsetting some of the shocks emanating from abroad. Indeed it seems almost ironic that the market is talking about rate cuts in...
Japan's inflationary pressure likely stalled
Oct 08, 2015 04:55 am UTC| Commentary
Despite the BoJs commitment to the 2% price stability target, inflationary pressure has stalled due to the downtrend in oil prices and sluggish demand after the consumption tax (CT) hike. The CPI (ex fresh food) finally...
Oct 08, 2015 04:47 am UTC| Commentary
UKs domestic economy remains solid. And in contrast to other countries, past tightening in the UK labor market is feeding through to wages, the UK seemscapable of generating inflation. So there is no need for a cut. The...
BoE's policy divergence mispriced
Oct 08, 2015 04:41 am UTC| Commentary
After the Feds decision not to hike in September and the consequent stream of disappointing data points in the U.S. and elsewhere, the market has pushed out its expectations of the BoEs first hike to 1Q17."The front end...
Near term GBP dynamics to remain a function of global risk outlook
Oct 08, 2015 04:39 am UTC| Commentary
Since the September BoE rate decision, GBP has underperformed, falling nearly 2% on a TWI basis with losses concentrated amongst the commodity $bloc currencies. This comes despite broad improvement in UK macro data...
Daily Economic Outlook: 8th October 2015
Oct 08, 2015 04:10 am UTC| Commentary
The Bank of England is universally expected to leave rates unchanged today, but the simultaneous publication of the meeting minutes and the vote split will provide a ready sense of how the perceived balance of risks is...
BoE likely to be much more cautious
Oct 08, 2015 03:38 am UTC| Commentary
BoEs policy decision this week raises two key questions, what will they say about the risks from China and how will the vote evolve? Before Mondays UK PMI services drop the BoE would not be expected to make big changes to...