As CPI inflation falls to 1.5 per cent, should the Bank hold off rate hikes until next summer? Chris Williamson, chief economist at Markit, says Yes. Quite possibly. The case for rates to stay low for longer is being aided by several factors. Global oil and commodity prices are low, and likely to stay historically weak due to subdued global demand (especially in key emerging markets such as China) and, in the case [...]
As the ECB unveils rate cuts and asset purchase plans, can it save the Eurozone from disaster? Chris Williamson, chief economist at Markit, says Yes. Yesterday’s announcement by the European Central Bank (ECB) – that it’s cutting rates and will buy asset-backed securities and euro-denominated covered bonds from October – will help avoid disaster, but huge risks remain. The rate cuts will only have a marginal impact, and little is known about [...]
