China policy support gains momentum

Jul 22, 2015 03:43 am UTC| Commentary

The PBoC monetary policy and policy to support equity markets and valuation are supportive of Chinese equities. Hong Kong-listed shares are preferrable.The room for monetary policy easing remains high, as the inflation and...

China monetary policy easing stabilises markets, as usual

Jul 22, 2015 03:39 am UTC| Commentary

In the current distressed market conditions, a large monetary policy response is the answer, only liquidity injections by the PBoC can stabilise the China market. Indeed, the central bank appears poised to do more in the...

BOJ's Kuroda's policy guided by ‘Adaptive’ inflation expectations

Jul 22, 2015 01:51 am UTC| Commentary Central Banks

Kuroda subscribes to a hypothesis that inflation expectations are adaptive, rather than rational, meaning that people form future inflation expectations based on past or current actual inflation. From his speech on 19...

Leading Australian index losing momentum

Jul 22, 2015 01:03 am UTC| Commentary

Westpac Research notes: The six month annualised deviation from trend growth rate in the Westpac-Melbourne Institute Leading Index, which indicates the likely pace of economic activity three to nine months in the...

BOJ's inflation ‘goalpost' is 2 percent

Jul 22, 2015 00:23 am UTC| Commentary

Two-percent inflation is the BOJs stated goalpost, and the Kuroda BOJ is strongly committed to achieving it, but investors should not rule out the possibility that this goalpost becomes more flexible. A 2% inflation...

BOJ policy: Secular policy mix and an external factor

Jul 21, 2015 23:57 pm UTC| Commentary

Ending deflation requires a coordinated monetary and fiscal reflation policy. While Japan does not have the luxury of policy flexibility on the fiscal side, a premature tightening of fiscal policy will likely be avoided...

DM rates: What’s different in 2015; ECB, liquidity & corporate supply

Jul 21, 2015 23:36 pm UTC| Commentary

Seasonal patterns are usually best left to the numbers without second guessing with macro rationale. Nevertheless, there are two reasons why the impact could be exaggerated this year and one taking away from it. First, the...