ECB under pressure from falling inflation expectations

Aug 28, 2015 15:33 pm UTC| Commentary Central Banks

The 5Y 5Y forward swap rate of inflation (or 5Y 5Y inflation) has fallen significantly in recent weeks. The 5Y 5Y inflation rate is a financial measure often referred to by the ECB, as the central bank considers it...

Market roller coaster underscores need for a plan

Aug 28, 2015 15:08 pm UTC| Commentary

The last week has been a roller coaster for investors. After a huge selloff on Monday and Tuesday, the Dow turned on a dime and posted its best two day point gain in its more than 100 year history. The broader market SP...

US Q3 GDP tracking 2.6% after July personal income and spending

Aug 28, 2015 14:51 pm UTC| Commentary

Personal income grew 0.4% m/m in July, in line with expectations as solid wage and salary gains (0.5% m/m, previous: 0.2%) continued to propel household income growth. Personal spending advanced 0.3% m/m in nominal terms,...

ECB Preview: More easing before year-end

Aug 28, 2015 14:39 pm UTC| Commentary Central Banks

The ECB will hold its regular monetary policy meeting next week on Thursday, 3 September. Since the last policy meeting in July, there have been several macroeconomic and financial factors that have reduced the near- and...

Israel keeps its base rate unchanged

Aug 28, 2015 12:44 pm UTC| Commentary Central Banks

Israel kept its 0.10% base rate on hold this week, as expected. The central bank is under pressure to loosen monetary policy conditions with inflation low at -0.3% y/y and recent growth indictors very negative. The main...

Russia inflation stabilizing

Aug 28, 2015 12:40 pm UTC| Commentary Economy

Russia inflation declined in August (per weekly data). The countrys inflation was expected at 15.5% y/y, down slightly from 15.6% last month. The decline in inflation is due to falling food prices from the strong 2015...

India economy likely to recover gradually

Aug 28, 2015 12:33 pm UTC| Commentary

India is scheduled to release its Q2 2015 GDP data on 31 August. Headline GDP is likely to show growth of 7.8% y/y (Q1: 7.5% y/y). India continues to witness a gradual recovery and growth in gross value addition (GVA)...