Brazil’s currency tests central bank’s patience

October 5, 2015

Brazil's Central Bank President Tombini gestures during a public hearing of the Budget Joint Commission in the Chamber of Deputies in Brasilia

The Brazilian real’s dramatic drop has left the central bank with two options: jack up rates aggressively in one startling move, or tolerate higher inflation for longer.

Sweet spot for UK pay could be just the nectar the economy needs

September 16, 2015

RTR309S7.jpgBritish workers have hit a sweet spot with wages rising much faster than near-zero inflation, suggesting the economy could gain further momentum as consumers spend their spare cash.

Inflation may still be far off target, but rates will soon be rising

September 15, 2015

USA/Inflation may be far off target but economists are convinced the United States Federal Reserve and the Bank of England will soon begin raising rates from near zero – with the Fed poised to act as soon as Thursday.

This time, BOJ could wait and watch before coming to yen’s rescue

September 15, 2015

U.S. one-hundred dollar bill and Japanese 10,000 yen notes are spread in TokyoThe Japanese yen has strengthened unexpectedly by about 4 percent over the last month and it could rise further if the U.S. Federal Reserve delays a rate hike and the dollar weakens.

Many say it’s time for the ECB to ramp up QE. But how to make it work?

September 14, 2015

RTX1QWU5.jpgThat the European Central Bank will have to soon add to its massive stimulus programme is fast becoming the consensus view among economists, although how it will do that effectively is far from clear.

Stronger dollar still set to fuel inflation in Latin America, despite weak growth

September 10, 2015

A customer selects bananas as others buy goods at a fruit and vegetable store in CaracasFor months, Latin America’s inflation has been surprisingly steady given the steep drop of their currencies. Weak growth helped curb prices – but that may be about to change.

Japan inflation expectations wilting once again

September 9, 2015

Not againThe biggest attention grabber out of Japan is today’s 7.7% moonshot on the stock market, based on hopes of further central bank stimulus in Asia as well as an expected corporation tax cut over the next few years. Never mind that this comes just one day after the Nikkei joined many other major global stock indexes in wiping out its gains for the year.

The new Godot: waiting for wage inflation

September 7, 2015

Actors Maertens and Stoetzner perform on stage at Vienna's BurgtheaterBoth of the two top central banks considering an interest rate rise from near-zero are hoping for a significant pickup in wage inflation and have been waiting a long time for it to turn up.

Weak growth may force India’s central bank to reconsider inflation focus

September 1, 2015

Reserve Bank of India Governor Raghuram Rajan speaks to The Economic Club of New York, in midtown ManhattanFor all its single-minded focus on lowering inflation, India’s central bank may be forced to acknowledge slowing growth in Asia’s third largest economy by cutting interest rates — probably faster than it expected.