Eurozone inflation, aims and aspirations
Eurozone inflation data just out show the annual rate creeping higher – to 1 per cent in January, up from 0.9 per cent in December. That will make life a [...]
Quarter 4 GDP Surges! Will The Labor Market Follow
First, the good news. This morning’s release of the government’s initial estimate of fourth-quarter GDP is a blow-out number: +5.7%. That’s the highest annualized quarterly real (inflation-adjusted) rise in GDP since 2003 and it’s also up sharp…
India increases reserves burden on banks
From the paper:
India’s central bank took steps on Friday to exit the loose monetary policy it adopted during the global financial crisis, as it tried to steady inflation expectations without [...]
Sentance inflation warning over-inflates the problem
Inflation may be a threat, as Andrew Sentance suggests, but there are other problems to overcome firstDepending on your point of view, the monetary policy committee’s external member Andrew Sentance is either showing the bulldog spirit of British confidence or simply blind, but misplaced, optimism.His latest speech repeats his view that inflation could prove stronger [...]
German inflation weaker than expected
Prices are falling in some parts of Germany and will rise more slowly than expected this year.
“A decline in January is normal but it isn’t usually this much. So we [...]
Sentance hints at UK rate rise, fearing inflation
Andrew Sentance hinted today that the UK central bank will tighten policy, saying that while current conditions persist, it “will be difficult for the MPC to keep inflation on target”.
“Through [...]
Australia set for 25bp rate rise next Tuesday
Rising inflation has made an rate rise even more likely at next week’s central bank meeting. Expectations are about 0.25 percentage point, which would take the cash rate to 4 [...]
UK economy: out of intensive care but still confined to bed
The worst may be over for the economy, but we may be facing a long convalescenceIn the grand scheme of things, it doesn’t matter when precisely the UK economy emerged from recession. What matters more – in the eyes of the bond market, at least – is the rate of growth that can be achieved [...]
Davos 2010: the early mood
Let’s face it. The Davos mood at the World Economic Forum is almost always wrong. In 2007 it was euphoric; 2008 was consumed by a fear of inflation; 2009 was [...]
Kenya holds rates at 7%
The Central Bank of Kenyan has kept the central bank rate at 7 per cent in spite of falling inflation and rising growth. Inflation has fallen dramatically, partly because of [...]