Australia's construction investment still declining but at a more measured pace

Aug 25, 2015 22:07 pm UTC| Commentary

Australias engineering construction is expected to continue to decline, but the slump of 7.3% in Q1 is likely to have been exceptional, especially the 9.8% drop in private engineering. Still, given ongoing sharp reductions...

UK productivity picks up in Q2

Aug 25, 2015 21:17 pm UTC| Commentary

Productivity growth collapsed after the financial crisis but the most recent data on the UK labour market raise the possibility that the long-awaited revival in productivity (and long forecast by the Bank of England...

Currency War Series

Financial markets force PBoC to ease

Aug 25, 2015 20:48 pm UTC| Commentary Central Banks

Peoples Bank of China (PBoC) today cut its leading interest rate by 25bp and the reserve requirement ratio (RRR) for commercial banks by 50bp. This was the fifth interest rate cut since November last year. The one-year...

A new chapter in currency war?

Aug 25, 2015 16:57 pm UTC| Commentary

The common denominator between the bursting of the Chinese stock market bubble earlier this summer and the August 11 devaluation of the CNY is slowing growth in China. According to the WTO, China imported goods...

Hungary on hold, remains optimistic on growth

Aug 25, 2015 16:49 pm UTC| Commentary

The National Bank of Hungary (NBH) kept its base rate on hold at 1.35%, which was consistent with expectations and with the NBH announcement last month that it was ending the rate cut cycle and would be on hold for an...

The cost of China's currency stabilisation

Aug 25, 2015 16:31 pm UTC| Commentary Central Banks

The PBoC cut the RRR for all banks by 50bp and offered additional reductions for leasing companies (300bp) and rural banks (50bp). All these will take effect as of 6 September, and the total amount of liquidity injected...

PBoC did as had to do, more to come

Aug 25, 2015 16:23 pm UTC| Commentary Central Banks

The PBoC announced a cut to the RRR for all banks by 50bp, effective as of 6 September. This move is absolutely necessary to reverse the passive liquidity tightening caused by FX intervention and therefore much...