Monetary
The ECB’s expected rate cut to 2% marks a slower easing phase, capping Bund yields. The shift to a quarterly pace of cuts, barring surprises, confirms a more gradual approach despite ongoing disinflation and weak growth. Staff projections downgraded inflation…
India's IT service exports have been booming and will continue to do so despite wider AI usage. Indian IT stocks, however, will not benefit from it as the expanding Global Capability Centers (GCCs) in India compete with the nation’s IT companies, driving the latter's profitability down.
Canada’s Headwinds Push The BoC Toward Easing
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Ukraine, Tariffs, and TACO: Still Buying Europe on Dips
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The RBNZ’s dovish stance will weigh on bond yields and the currency. The Reserve Bank of New Zealand cut rates by 25 basis points to 3.25%, building on 225 basis points worth of easing since August 2024. New Zealand’s central bank is signaling one…
This Insight looks at the implications of the RBNZ’s rate cut on New Zealand assets.
We perform a decomposition of yields moves across six major developed government bond markets to get to the bottom of what’s been driving the global bond selloff of the past eight months.
UK inflation surprised to the upside in April. Headline inflation rose to a 15-month high of 3.5%, from 2.6% the month before. Core inflation also surprised above estimates, printing 3.8% vs. 3.4% in March. Services inflation climbed to 5.4% from 4.7%. Higher…
Swiss National Bank will have to resort to negative interest rates and FX intervention before year-end. Swiss inflation fell to 0% year-over-year in April, or the lower end of the SNB’s 0%-2% target range, and the continued strength in the Swiss Franc…
Overnight, the Reserve Bank of Australia (RBA) cut the cash rate target by 25bps to 3.85%, as widely expected. After this cut, the market still prices in about 50bps of easing over the next six months. According to our Global Fixed-Income strategists,…