BoK unlikely to implement additional easing in H2

Jul 28, 2015 04:01 am UTC| Commentary

Koreas weak Q2 GDP rekindles hope for further BoK rate cuts. However, the BoK is unlikely to implement additional easing in H2 this year. First, Q2 GDP data shows that weaker growth was driven by MERS concerns while a few...

Fed revises the forecast

Jul 28, 2015 03:36 am UTC| Commentary

A new notice was posted on the Federal Reserves website, which reports 2015 GDP growth of 1.55%. The lower number implies that Fed staff took the -0.2% print of Q1 GDP as representative of the underlying momentum in the...

Rise in USD/KRW exchange rates likely will raise concern on capital outflows

Jul 28, 2015 01:53 am UTC| Commentary

Societe Generale notes:Most market participants, including the BoK and us, have not supported the argument that the BoK has to raise the policy rates along with the US Feds rate hikes to prevent potential capital outflows....

South Korea: Weak GDP driven by MERS concerns, while a few key growth drivers were strong

Jul 28, 2015 01:42 am UTC| Commentary

Societe Generale notes:South Koreas Q2 GDP data clearly shows that the weakness in GDP growth was mostly driven by MERS concerns that should be temporary. In the breakdown by expenditure, we watched the contraction of...

Banxico to stay on pause until Q1 16

Jul 28, 2015 00:59 am UTC| Commentary

The Bank of Mexico has kept its policy rate unchanged since mid-2014 at 3.0% - historically its lowest level - and no rate hikes are expected until Q1 2016 given the persistent output gap and low inflation. Progress on...

Brazil's credit growth deceleration likely continued in June

Jul 28, 2015 00:46 am UTC| Commentary

After a brief pick-up in H2 14 on liquidity measures, Brazils credit growth resumed its decelerating trend. In fact, credit growth has been on a decelerating trend since the end of 2010 and it would be difficult to expect...

Taiwan's Q2 GDP growth to dip below 1% temporarily

Jul 28, 2015 00:28 am UTC| Commentary

After an exceptional contribution to GDP growth in Q1 (+2.6pp), Taiwans net exports are likely to have declined in Q2 and dragged growth down sharply by 3.5pp. Owning to soft demand for electronics, real merchandise export...