4.75% Philippines: Central bank to pause as inflation drops
|
|
- Dustin Cook
- 5 years ago
- Views:
Transcription
1 Economic and Financial Analysis 12 December 2018 Global Economics 12 December 2018 Snap Philippines: Central bank to pause as inflation drops Decelerating inflation could open the door for central bank easing in % BSP policy rate Market consensus is for a pause Bangko Sentral ng Pilipinas (BSP) meets on 13 December with current market consensus widely expecting the central bank to keep rates unchanged (Bloomberg: 18 of 18 in favour of a pause, Reuters: 11 of 13). The BSP has hiked by a cumulative 175bp over the last seven months in its last five meetings, in a bid to anchor inflation expectations and address stubbornly above-target inflation. With November inflation reflecting a significant deceleration in price pressures, the market expects the BSP to finally hold off on adjusting policy rates after five straight hikes. November headline inflation saw a notable year-on-year drop to 6.0% from 6.7% and translating into a month-on-month contraction of 0.40%. The main reason behind the lower print was the slowdown in food inflation, which slipped to 8.0% from 9.4% in the previous month as supply-side bottlenecks were ironed out. Furthermore, the reversal in the direction of global oil prices has also helped limit price pressures for household utilities and transport. After seven consecutive weeks of declines in pump retail prices, the government rolled back its PHP1 increase in minimum jeepney (commuter bus) fares, mitigating second-round effects. With BSP lowering its inflation forecasts substantially to 3.5% for 2019 and 3.3% for 2020, inflation expectations appear to be wellanchored with the majority of analysts expecting the BSP to keep policy rates unchanged on 13 December. Why BSP might hike: accelerating core inflation Despite market consensus for a pause from the BSP, monetary authorities might opt to increase the main policy rate by another 25 basis points, with Governor Espenilla flagging accelerating core inflation and the need to pay close attention to the core inflation trend. The Governor also indicated that managing inflation expectations remains crucial, with the central bank on the lookout for any unwarranted price increases. Should the BSP believe that accelerating core inflation reflects a worrisome build-up in unwarranted price increases, the central bank may look to enact another proactive tightening. The Governor still expects growth to remain strong. However, with food and energy costs dissipating, BSP concerns over rising core inflation might not
2 be warranted - inflation is expected to edge back within target over the policy horizon, with the base effects of tax adjustments for alcohol, beverages and tobacco fading in Why BSP won't hike: a drop in headline inflation and anchored expectations The BSP might decide to hold off on hiking policy rates as price pressures have continued to dissipate. Roughly 703,000 MT of rice has been secured via National Food Authority (NFA) bidding while private traders are lined up to import up to 572,278 MT for next year. Furthermore, the allimportant rice tariff bill is set for passage while oil prices are expected to be constrained in the short term on concerns of a global supply glut. Inflation expectations remain well-anchored, with Bloomberg inflation forecasts reported in December showing headline inflation settling at the 3.8% level by Furthermore, domestic liquidity conditions remain constrained, as evidenced by the latest M3 growth print of 8.2%. This should also limit demand-side inflationary pressures in the coming months. Lastly, despite expectations of strong economic growth, 3Q GDP numbers point to a stark weakening in growth momentum with household final consumption growth slowing to 5.2% year-on-year. A BSP pause would give the Philippine economy some breathing room to maintain its current growth trajectory, all the more so given expectations for slowing global economic growth in Verdict: BSP to go for a "hawkish pause" After hiking rates by a cumulative 175bp over the course of its last five meetings, the BSP is likely to go for a hawkish pause. We expect it to keep rates unchanged while simultaneously retaining its hawkish bias by pledging to act against signs of price pressure if these become apparent. Pausing on 13 December will give the general economy some breathing room. It would also keep the market on its toes by displaying the BSP s readiness to act to safeguard the inflation target. 2
3 Hump-shaped inflation: sounds like 2008 The sharp drop in November headline inflation supports the BSP expectation that cost-push induced inflation in 2018 will exhibit a hump-shaped curve just as it did in 2008, the last time the BSP breached its inflation target. Back in 2008, inflation surged to 10.5%, more than double the BSP s inflation then target of %. Supply-side factors were also behind the breach (with peaks of 17.3% for food inflation, 15.6% for transport and 6.4% for utilities). After peaking at 10.5% in August 2008, inflation quickly fell to 7.8% by December 2008 and to 1.7% by August The BSP response in 2008 was to hike three times (cumulative: +100bp) in mid-2008 followed by a quick reversal in stance by 4Q08, cutting reserves by 200bp in November and slashing policy rates by 50bp in December, with growth slowing to 2.9%. Philippine inflation, inflation target and BSP policy rate ( ) Source: Bloomberg 3
4 BSP could ease in 2019 if stars align With 2018 inflation also driven largely by supply-side pressures, we can expect headline inflation to follow a sharp decline similar to that of Food supply bottlenecks are being addressed and oil prices are sliding. Should headline inflation continue to slide in coming months, growth slow to sub-6% levels in coming quarters and the Fed adopts a more dovish stance, then the likelihood that the BSP reverses its stance to easing by 2Q19 will have increased. Back in 2008, the BSP moved swiftly to bolster failing growth momentum once it judged the inflation objective to be well within reach. If the stars align then the BSP may follow the same path that it did during the most recent inflation-breach episode (2008), slashing policy rates to give the economy a much-needed break. Philippine inflation, inflation target and BSP policy rate ( ) Source: Bloomberg and ING Nicholas Mapa Senior Economist, Philippines nicholas.antonio.mapa@asia.ing.com 4
5 Disclaimer This publication has been prepared by the Economic and Financial Analysis Division of ING Bank N.V. ("ING") solely for information purposes without regard to any particular user's investment objectives, financial situation, or means. ING forms part of ING Group (being for this purpose ING Group NV and its subsidiary and affiliated companies). The information in the publication is not an investment recommendation and it is not investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Reasonable care has been taken to ensure that this publication is not untrue or misleading when published, but ING does not represent that it is accurate or complete. ING does not accept any liability for any direct, indirect or consequential loss arising from any use of this publication. Unless otherwise stated, any views, forecasts, or estimates are solely those of the author(s), as of the date of the publication and are subject to change without notice. The distribution of this publication may be restricted by law or regulation in different jurisdictions and persons into whose possession this publication comes should inform themselves about, and observe, such restrictions. Copyright and database rights protection exists in this report and it may not be reproduced, distributed or published by any person for any purpose without the prior express consent of ING. All rights are reserved. The producing legal entity ING Bank N.V. is authorised by the Dutch Central Bank and supervised by the European Central Bank (ECB), the Dutch Central Bank (DNB) and the Dutch Authority for the Financial Markets (AFM). ING Bank N.V. is incorporated in the Netherlands (Trade Register no Amsterdam). In the United Kingdom this information is approved and/or communicated by ING Bank N.V., London Branch. ING Bank N.V., London Branch is subject to limited regulation by the Financial Conduct Authority (FCA). ING Bank N.V., London branch is registered in England (Registration number BR000341) at 8-10 Moorgate, London EC2 6DA. For US Investors: Any person wishing to discuss this report or effect transactions in any security discussed herein should contact ING Financial Markets LLC, which is a member of the NYSE, FINRA and SIPC and part of ING, and which has accepted responsibility for the distribution of this report in the United States under applicable requirements. 5
Romania: Wage growth slows
Economic and Financial Analysis 13 March 2018 Snap 13 March 2018 Romania: Wage growth slows Global Economics Romanian wages grew 8.8% year-on-year in January, the first single-digit growth rate since October
More information3.9% Good MornING Asia - 6 April Asia week ahead: Trade war threats weighs on central banks
Economic and Financial Analysis Bundle Good MornING Asia - Global Economics The fear of a global trade war weighs on Asian central bank policy tightening. We expect Singapore and Korea to keep policies
More informationRomania s GDP growth rises to 7% in 2017
Economic and Financial Analysis 7 March 2018 7 March 2018 Snap Romania s GDP growth rises to 7% in 2017 But given that the fourth quarter sequential growth was very weak, we expect 2018 GDP expansion at
More information10% Asia week ahead: First test of US protectionism. Economic and Financial Analysis
Economic and Financial Analysis 29 March 2018 Global Economics 29 March 2018 Article Asia week ahead: First test of US protectionism Korea s trade data is the first test of increased US trade protectionism.
More informationWhat lies beneath Asian currencies pain?
Economic and Financial Analysis Article What lies beneath Asian currencies pain? Global Economics The China-US trade spat, higher oil prices, a hawkish Fed and an appreciating dollar have had almost all
More informationHungary: Consumption drives GDP growth
Economic and Financial Analysis 5 June 2018 Article 5 June 2018 Hungary: Consumption drives GDP growth Global Economics The economy started 2018 exactly where it left it last year but the growth structure
More informationTurkey central bank to remain on hold this time
Economic and Financial Analysis 22 October 2018 Global Economics 22 October 2018 Article Turkey central bank to remain on hold this time After the 625bp front loaded hike last month and the recent lira
More information7.50% Mexico: Another rate hike this week. Economic and Financial Analysis
Economic and Financial Analysis 5 February 2018 Article 5 February 2018 Mexico: Another rate hike this week Global Economics And the balance of risks is tilted towards more rate hikes than currently expected,
More informationPolish GDP grows by 5.1%YoY in the fourth quarter; we remain upbeat
Economic and Financial Analysis Snap Polish GDP grows by 5.1%YoY in the fourth quarter; we remain upbeat Global Economics Finally, investment in Poland recovers to make a higher contribution (2.8pp) than
More informationKey events in developed markets next week
Economic and Financial Analysis Global Economics Article Key events in developed markets next week German's Ifo survey should provide some insight into whether the dismal third quarter was an aberration
More informationUS import tariffs on steel and aluminium: Who stands to lose?
Economic and Financial Analysis 2 March 2018 Article 2 March 2018 Global Economics US import tariffs on steel and aluminium: Who stands to lose? President Trump's clear intentions to slap import tariffs
More informationBelgium: Just not fast enough
Economic and Financial Analysis 17 May 2018 Article 17 May 2018 Belgium: Just not fast enough Global Economics For Belgium, 2017 was another recovery year which is definitively satisfactory but things
More informationThe end of the year marks high hopes for Brazil in 2019
Economic and Financial Analysis Global Economics Article The end of the year marks high hopes for Brazil in 2019 Brazil's economic recovery didn't really materialise in 2018 but the year ends with a post-election
More informationWhat a bearish re-steepening of the Treasury curve could mean for FX
Economic and Financial Analysis Article What a bearish re-steepening of the Treasury curve could mean for FX FX The dollar continues to nudge lower as investors re-assess the Fed tightening cycle. Before
More informationPetro-currencies lose their mojo
Economic and Financial Analysis 7 November 2017 FX 7 November 2017 Article Petro-currencies lose their mojo Despite Brent crude pushing to nearly US$65/barrel, G10 oil exporting currencies have yet to
More information2.1%, 2% Canada s yield curve: Should we be worrying? Economic and Financial Analysis
Economic and Financial Analysis Article Global Economics Canada s yield curve: Should we be worrying? Canada s 10-2 year treasury yield spread has being flattening since the beginning of 2017. But now
More informationKey events in EMEA and Latam next week
Economic and Financial Analysis Global Economics Article Key events in EMEA and Latam next week A heavy data week ahead in EMEA and Latam with a flurry of central bank meetings. With a common 'on hold'
More informationSwiss Quarterly: On the right track
Economic and Financial Analysis 10 July 2018 Global Economics 10 July 2018 Article Swiss Quarterly: On the right track Even though Switzerland s real GDP growth lost some momentum, the outlook is positive
More informationUS: Dangerous deficits?
Article 5 March 2018 US: Dangerous deficits? Economic and Financial Analysis Global Economics Given the pace of economic growth and record levels of employment, it's remarkable that there is a possibility
More informationFederal Reserve preview: A glass half full
Economic and Financial Analysis Global Economics Article Federal Reserve preview: A glass half full After December s rate hike, the Federal Reserve indicated it would slow the pace of interest rate rises
More informationTaiwan: GDP riding global growth trend but prone to trade threat
Economic and Financial Analysis 29 January 2018 Global Economics 29 January 2018 Article Taiwan: GDP riding global growth trend but prone to trade threat The narrowly-focused economy is prone to trade
More informationUS yield curve and recession risk - watch the shape not the slope
Economic and Financial Analysis 8 August 2018 Article 8 August 2018 US yield curve and recession risk - watch the shape not the slope Rates With the 2s10s yield curve on a persistent flattening trend and
More informationHow will China s new central bank governor run the new central bank?
Economic and Financial Analysis 21 March 2018 Global Economics 21 March 2018 Article How will China s new central bank governor run the new central bank? With more responsibilities to regulate the banking
More information-0.4% Japan 3Q18 GDP - blame it on the weather. Economic and Financial Analysis
Economic and Financial Analysis Article Japan 3Q18 GDP - blame it on the weather Global Economics Since we put together our 3Q18 GDP forecasts some weeks ago, it has become apparent that the outcome will
More informationIndian Banks: A fundamental overview
Economic and Financial Analysis 25 June 2018 Global Economics 25 June 2018 Article Indian Banks: A fundamental overview In India, public sector banks have been harder hit than their private counterparts.
More informationSwedish krona: A forecast revision
Economic and Financial Analysis 8 May 2018 FX 8 May 2018 Article Swedish krona: A forecast revision We expect the battered Swedish krona to remain under pressure as global trade tensions, domestic politics
More informationKey events in developed markets next week
Economic and Financial Analysis Global Economics Article Key events in developed markets next week It's back to the Brexit drawing board for Theresa May next week as she heads to Europe for more talks.
More informationTurkey Room for optimism
Economic and Financial Analysis Article Turkey Room for optimism Global Economics Despite the clear election result, Turkish sovereigns and bank credits failed to rally. But as investors await the appointment
More informationPhilippines 2019 GDP outlook
Philippines 19 GDP outlook ember 1 Economic & Financial Analysis Economics ember 1 Philippines 19 GDP outlook Likely to post slowest growth rate since 15 Our estimate of 19 Philippines growth at.1% would
More informationThree things the Fed is thinking about
Economic and Financial Analysis Article Three things the Fed is thinking about Global Economics Investors will be scrutinising tomorrow's Fed s minutes for thoughts on trade, inflation and the recent widening
More informationRussia-China trade in national currencies: the product mix is key
Economic and Financial Analysis 18 October 2018 Article 18 October 2018 Global Economics Russia-China trade in national currencies: the product mix is key The share of RUB and CNY in Russia-China trade
More informationThe Bank of England s road to August in six charts
Economic and Financial Analysis 17 May 2018 Article 17 May 2018 The Bank of England s road to August in six charts Global Economics Will the UK economy emerge from the depths of the worst quarter of growth
More informationFour reasons why EUR/GBP won t reach parity
Economic and Financial Analysis 24 August 2017 FX 24 August 2017 Article Four reasons why EUR/GBP won t reach parity As the pound gets an economic and Brexit reality check, we explain why the 'Great British
More informationGood MornING Asia - 1 March 2018
Economic and Financial Analysis Bundle Good MornING Asia - Global Economics Ignore China's weak PMI data; supply-side reforms support prospects of steady manufacturing and GDP growth in 2018. India's GDP
More informationDutch Economy Chart Book
Dutch Economy Chart Book Part 1: production, profits and investment of non-financial sector ING Economics Department Amsterdam July 217 Non-financial businesses In 216, almost all major market sectors
More informationSwedish Krona: Swimming naked?
Economic and Financial Analysis 7 March 2018 Article 7 March 2018 Swedish Krona: Swimming naked? We revise up our EUR/SEK forecast to reflect new risks from the US administration's aggressive trade policy
More informationG10 FX Week Ahead: Waiting for the ECB
Economic and Financial Analysis 23 October 2017 FX 23 October 2017 Article G10 FX Week Ahead: Waiting for the ECB The key focus for FX markets is the ECB meeting on Thursday. Here's our view of major currency
More informationKey events in developed markets next week
Economic and Financial Analysis Global Economics Article Key events in developed markets next week Another week in developed markets that will be dominated by Brexit as PM May's deal is voted on in parliament
More informationSwiss Economy 2018 outlook
Economic and Financial Analysis 15 December 2017 Article 15 December 2017 Swiss Economy 2018 outlook Global Economics The Swiss National Bank will have to wait until late 2019 before the current activity
More informationDutch Economy Chart Book
Dutch Economy Chart Book Part 2: consumers ING Economics Department Amsterdam August 217 Consumers Spending power has risen strongly in the past two years, helped by more jobs, higher wages, near-zero
More informationYapi Kredi: $1bn cap raise brings relief
Economic and Financial Analysis 3 August 2018 Fixed Income 3 August 2018 Article Yapi Kredi: $1bn cap raise brings relief Yapi Kredi (YKBNK) reported strong 1H18 profitability, driven by TRY loan growth
More informationIs there any stopping thermal coal?
Economic and Financial Analysis 7 February 2018 Commodities 7 February 2018 Article Is there any stopping thermal coal? Thermal coal prices have surged higher over recent months, driven by stronger demand
More informationTurkey s Yapi Kredi still short of capital
Economic and Financial Analysis 8 February 2018 Fixed Income 8 February 2018 Article Turkey s Yapi Kredi still short of capital Yapi Kredi continued the theme we have seen from Turkish banks so far, reporting
More information$57.2bn. Why the US trade deficit is heading the wrong way. Economic and Financial Analysis
Economic and Financial Analysis 6 April 2018 Global Economics 6 April 2018 Article Why the US trade deficit is heading the wrong way Macroeconomic policy, not just trade barriers, affects the trade deficit.
More informationEurozone: That late summer feeling
Economic and Financial Analysis 17 September 2018 Global Economics 17 September 2018 Article Eurozone: That late summer feeling The Eurozone economy is still showing decent growth, but the pace of growth
More informationTrade in 2018: Nowhere close to its heyday
Economic and Financial Analysis 5 December 2017 Article 5 December 2017 Trade in 2018: Nowhere close to its heyday Trade Trade in 2018 will pick up speed but rebalancing of the Chinese economy and global
More informationCrude oil: What s in store for 2018?
Economic and Financial Analysis 7 November 2017 Global Economics 7 November 2017 Article Crude oil: What s in store for 2018? We have revised our ICE Brent forecast for the next quarter to $57 per barrel,
More information2,881. Metals mettle. Economic and Financial Analysis
Article 25 July 2017 Metals mettle Economic and Financial Analysis Commodities Strength in copper and nickel has pushed the LME metals index to a three month high. Are aluminium cuts coming? Contents Aluminium
More informationWhat now for tax cuts after Trump s healthcare failure?
Economic and Financial Analysis 19 July 2017 Global Economics 19 July 2017 Article What now for tax cuts after Trump s healthcare failure? Failure to repeal and replace Obamacare means tax cuts are likely
More informationCentral banks and rates, the definitive guide
Economic and Financial Analysis 23 October 2017 Article 23 October 2017 Global Economics Central banks and rates, the definitive guide What to expect from the major central banks over the next few months
More informationAnadolu Efes returns to normal
Economic and Financial Analysis 8 May 2018 Fixed Income 8 May 2018 Article Anadolu Efes returns to normal The Turkish beer company remains reliant on its soft drinks division but managed to cushion the
More informationRussia: Hit by a double shot of sanctions
Economic and Financial Analysis Global Economics Article Russia: Hit by a double shot of sanctions Russian assets have sold off heavily over the last 24 hours on the back of two US sanctions stories. The
More informationAluminium: Stakes are high for Section 232
Economic and Financial Analysis 19 February 2018 Article 19 February 2018 Aluminium: Stakes are high for Section 232 Commodities The US Commerce Department has recommended sweeping trade tariffs for US
More informationCrude oil: A story of demand
Economic and Financial Analysis Article Crude oil: A story of demand Commodities Growing trade tensions and increasing emerging market risk have weighed on the commodities complex. The Bloomberg Commodities
More informationUSD: Return of the king or just a breather from a crowded short trade
Economic and Financial Analysis 24 April 2018 FX 24 April 2018 Article USD: Return of the king or just a breather from a crowded short trade The sharp 2% bounceback in the broad US dollar index has raised
More informationDollar Regime Change: The Prequel
Economic and Financial Analysis 15 February 2018 Article 15 February 2018 Dollar Regime Change: The Prequel FX There are early signs that the dollar is undergoing a significant regime change particularly
More informationDigital transformer. ECB policy supportive of innovation. Economic & Financial Analysis
Billions Economic & Financial Analysis Economics 8 December 2017 Eurozone Eurozone investment still has some room to catch up 600 550 500 450 400 350 Digital transformer ECB policy supportive of innovation
More informationEUR/CHF: Welcome back, the Swiss franc
Economic and Financial Analysis FX 10 August 2017 10 August 2017 EUR/CHF: Welcome back, the Swiss franc EUR/CHF is starting to trade like its old self again. In this article Coming back in from the cold
More informationOPEC oil cuts: To continue or not to continue, that is the question
Economic and Financial Analysis 24 May 2018 Article 24 May 2018 Commodities OPEC oil cuts: To continue or not to continue, that is the question The oil market has rallied on the back of US sanctions on
More informationBrazil: Monetary easing reaches final stage
Economic and Financial Analysis 4 December 2017 Global Economics 4 December 2017 Article Brazil: Monetary easing reaches final stage With the local yield curve pricing 150bp in rate hikes next year, will
More informationContents The best of MYR appreciation may be over A clear victory but muddled future And more economic risks ahead But some positives
Economic and Financial Analysis Global Economics Article Malaysia: Mahathir returns, uncertainty lingers The lingering political and economic uncertainty ahead leads us to revise our end-2018 USD/MYR forecast
More informationDollar bloc FX: Keep calm and carry off?
Economic and Financial Analysis FX 11 August 2017 11 August 2017 Article Dollar bloc FX: Keep calm and carry off? A concoction of negative seasonal trends, central bank currency jawboning and a global
More informationArgentina oil & gas. Unleashing its potential. Shale development phases
Economic & Financial Analysis Commodities 7 August 2018 Energy Argentina oil & gas Unleashing its potential The oil and gas sector in Argentina is moving in the right direction, with the liberalisation
More informationGood MornING Asia - 29 June 2018
Economic and Financial Analysis Bundle Good MornING Asia - Global Economics 2Q18 was a rough one for emerging markets including Asia, but will 3Q be any better? Opinion What will 3Q18 bring? 2Q18 was a
More informationShrinking oil inventories mean higher prices
Economic and Financial Analysis 17 April 2018 Commodities 17 April 2018 Article Shrinking oil inventories mean higher prices ICE Brent broke back above US$70/bbl last week due to geopolitical risks along
More informationCopper: What s it going to take to flip the curve?
Economic and Financial Analysis Commodities Article Copper: What s it going to take to flip the curve? The street has turned increasingly bullish on copper for 2018. We see the rationale but need to yet
More informationDutch Economy Chart Book
Dutch Economy Chart Book Part 3: labour market ING Economics Department Amsterdam August 17 Labour market Employment growth has accelerated in recent quarters. The number of jobs is now higher than it
More informationBrexit update: Theresa May s biggest test yet?
Economic and Financial Analysis Article Global Economics Brexit update: Theresa May s biggest test yet? The UK Prime Minister faces a series of challenging parliamentary votes on her plan to leave the
More informationBrazil: Dire fiscal constraints imply binary outcomes
Economic and Financial Analysis 20 October 2017 Global Economics 20 October 2017 Article Brazil: Dire fiscal constraints imply binary outcomes There are reasons to be optimistic about Brazil's economic
More informationThe structural decline in the Eurozone s growth potential
Economic & Financial Analysis Economics 19 March 2018 Eurozone The structural decline in the Eurozone s growth potential What s really going on and what it means for policy, politics and central banks
More informationBrazil: Buying time with intervention
Economic and Financial Analysis 14 June 2018 14 June 2018 Article Brazil: Buying time with intervention Aggressive FX intervention should enable the central bank to follow current policy guidance and keep
More informationGood MornING Asia - 8 November 2018
Economic and Financial Analysis Global Economics Bundle Good MornING Asia - 8 November 2018 Risk-on is back after the relatively positive election US midterm results. The focus now shifts to the Fed with
More informationBrexit: Seven big questions looming in 2018
Economic and Financial Analysis 13 December 2017 Global Economics 13 December 2017 Article Brexit: Seven big questions looming in 2018 The announcement of 'sufficient progress' removes a big layer of uncertainty
More informationEuro area outlook for 2015
Investment Research General Market Conditions 14 January 2015 Euro area outlook for 2015 Deflation but the good kind The euro area slipped into deflation in December 2014 and we expect the inflation rate
More informationECB preview Dovish and slightly worried
Investment Research General Market Conditions 27 August 2015 ECB preview Dovish and slightly worried Main focus on the drop in 5Y5Y inflation expectations that are again far below the ECB s 2%-target The
More informationSwitzerland: The sun is shining but clouds loom
Economic and Financial Analysis 8 October 2018 Global Economics 8 October 2018 Article Switzerland: The sun is shining but clouds loom Low core inflation, high GDP growth, a super cautious central bank
More informationNorges Bank Review 24 September 2015
Norges Bank Review 24 September 2015 A 25bp rate cut and an easing bias Frank Jullum Chief Analyst fju@danskebank.dk www.danskebank.com/research Arne Lohmann Rasmussen Chief Analyst klom@danskebank.dk
More informationGood MornING Asia - 27 April 2018
Economic and Financial Analysis Global Economics Bundle Good MornING Asia - Having briefly dabbled with a US Treasury yield above 3% intraday earlier this week, markets can't seem to pluck up the courage
More informationOur view on next week s key events
Economic and Financial Analysis Global Economics Bundle Our view on next week s key events Discover what ING analysts are looking for next week in our global economic calendars Article Key events in developed
More informationA hawkish hold with risks ahead in an unusual context is the best strategy for now
CENTRAL BANKS A hawkish hold with risks ahead in an unusual context is the best strategy for now Carlos Serrano / Javier Amador 8 December 2017 Monetary Policy should not react to temporary supply shocks
More informationEuro inflation research #3 Time to position for higher inflation
Investment Research General Market Conditions 11 March 2015 Euro inflation research #3 Time to position for higher inflation We see value in positioning for higher inflation especially after the oil price
More informationSouth Korea: new growth model emerging?
ING Business Opportunity Report Economics Department South Korea: new growth model emerging? Summary conclusions The growth outlook for Korea in the short to medium term is positive. ING forecasts economic
More informationG10 FX Week Ahead: The art of trade wars
Economic and Financial Analysis 9 March 2018 9 March 2018 Article G10 FX Week Ahead: The art of trade wars The supreme art of war is to subdue the enemy without fighting Sun Tzu President Trump will feel
More informationIndian Banks: The final cleanup
Economic and Financial Analysis 25 June 2018 Global Economics 25 June 2018 Article Indian Banks: The final cleanup Indian banks are going through the final phase of their balance-sheet cleanup. This completes
More informationGlobal Macroeconomic Monthly Review
Global Macroeconomic Monthly Review August 14 th, 2018 Arie Tal, Research Economist Capital Markets Division, Economics Department 1 Please see disclaimer on the last page of this report Key Issues Global
More informationGood MornING Asia - 3 September 2018
Economic and Financial Analysis Bundle Good MornING Asia - 3 September 2018 Global Economics Its been a good start to the day in Asia, where both Japanese capital spending for 2Q18 and corporate profits
More information2015: A rosy outlook. Vlad Muscalu Chief Economist
215: A rosy outlook Vlad Muscalu Chief Economist GDP forecasting a funny rollercoaster Talking about GDP Y = C + I + G + X - M GDP = Private Consumption + Investment + +Government Consumption + Exports
More informationCountry in the Spotlight - France
Country in the Spotlight - France On a slippery path The French economic recovery remains on track, though it becomes hard to bank on a strong acceleration given that the main recovery drivers were temporary
More informationFlash Comment ECB preview: Still pressure from low inflation
Investment Research General Market Conditions 8 January 2014 Flash Comment ECB preview: Still pressure from low inflation Euro inflation has declined again and core inflation is at an all-time low. This
More informationECB Research ECB cutting through the lower bound Danish experiences
Investment Research General Market Conditions 03 November 2015 ECB Research ECB cutting through the lower bound Danish experiences Given the turnaround in the ECB s view on deposit rate cuts, we expect
More informationBanken, krediet en eigen vermogen
Banken, krediet en eigen vermogen Teunis Brosens Nederlandse Economendag 4 November 2016 The self-inflatable system of credit & money Credit Financial system Assets Liabilities Equity Deposits + other
More informationAsia Bond Monitor November 2018
7 December 8 Key Developments in Asian Local Currency Markets T he monetary board of the Bangko Sentral ng Pilipinas decided to keep its key policy rates steady during its final meeting for the year on
More informationEuro Inflation Research #2 ECB s core inflation forecast is too optimistic
Investment Research General Market Conditions 6 March 2015 Euro Inflation Research #2 ECB s core inflation forecast is too optimistic The ECB yesterday published new inflation forecasts, including the
More informationRussia 2019: risk-averse mode. Dmitry Dolgin, Chief Economist, Russia & CIS November 2018
Russia 219: risk-averse mode Dmitry Dolgin, Chief Economist, Russia & CIS November 218 Key messages and forecasts for 219 - GDP growth at modest 1. due to weakening household consumption as a result of
More informationG10 FX Week Ahead: Dollar isolationism
Economic and Financial Analysis 8 June 2018 Article 8 June 2018 G10 FX Week Ahead: Dollar isolationism The week ahead will be dominated by the aftermath of the G7 leaders' meeting in Quebec, Trump's meeting
More informationGlobal Inflation. Set to surprise on the upside lifting long-dated inflation pricing. 27 October /
Global Inflation Set to surprise on the upside lifting long-dated inflation pricing Pernille Bomholdt Henneberg Mikael Olai Milhøj Senior Analyst, Euro area macro research Senior Analyst, US and UK macro
More informationRBI Monetary Policy Update Status Quo on Rates
RBI Monetary Policy Update Status Quo on Rates After the cutting the rate by 25 bps in August policy, the RBI kept the key policy rate unchanged at 6% and maintained the neutral stance of monetary policy
More informationG10 FX Week Ahead: Dollar gets the Trump treatment
Economic and Financial Analysis 2 March 2018 2 March 2018 Article G10 FX Week Ahead: Dollar gets the Trump treatment Ahead of weekend political event risks in Europe, we provide our best guess on how the
More informationMonitor Euro area deflation
Investment Research General Market Conditions 17 July 2014 Euro area deflation Inflation outlook Euro inflation remained very low at 0.5% in June and is still far below the ECB s target. In response, the
More informationAsian FX TalkING. Sitting Pretty. Economic & Financial Analysis. Asia. Exchange rates vs USD (%MoM)
S&P 500 Nikkei Shanghai H S I JCI BSE KOSPI KLSE PSE STI TWSE SET USD JPY CNY HKD IDR INR KRW MYR PHP SGD TWD THB EUR JPY CNY HKD IDR INR KRW MYR PHP SGD TWD THB Asian FX TalkING November 2018 Economic
More information