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...

UK unlikely to see rate cut?

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...